Practice question
A debtor partly performs a principal obligation. The creditor argues that the agreed penalty is immune from equitable reduction because both freely signed it. Which response follows Article1229?
- The judge shall equitably reduce the penalty for partial or irregular compliance
- Every signed penalty is immune from judicial adjustment
- Partial performance necessarily cancels all principal liability
- The penalty automatically becomes imprisonment
- Only the creditor may decide the legal effect
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1171,1229,1306,1956,2088,2130.
- GR126800 November29,1999 MAIN: https://lawphil.net/judjuris/juri1999/nov1999/gr_126800_1999.html — Article1306 and prohibited automatic appropriation.
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