Liquidated Damages

This topic has no further subtopics. Explore its practice questions below.

1. Does nullity of the penal clause automatically nullify an otherwise valid principal obligation?
2. A buyer demands both specific fulfillment and a penalty under a clause that does not clearly grant cumulative relief. N…
3. A principal obligation is declared void. The creditor nevertheless seeks its accessory contractual penalty as if Articl…
4. A debtor validly undertakes to manufacture equipment and agrees to a penalty for noncompliance. No express option to su…
5. A creditor elects fulfillment. Performance subsequently becomes impossible without the creditor’s fault. The debtor inv…
6. Distinguish the debtor’s ability to substitute payment of a penalty from the creditor’s ability to demand penalty and p…
7. Explain the asymmetry of nullity under Article 1230 for a penal clause and its principal obligation.
8. A debtor treats a penalty as an automatic purchase of freedom from performance. Analyze Article 1227 where no express o…