Philippine Bar review · Topic
Obligations with a Penal Clause
Explore Obligations with a Penal Clause in Civil Obligations for the Philippine Bar. Browse subtopics and published practice questions, then take a quiz or…
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Practice questions
- Absent contrary stipulation and the statutory exceptions, what does the penalty replace upon noncompliance?
- Must the creditor prove actual damages before demanding a properly demandable penalty?
- Does nullity of a penal clause necessarily invalidate an otherwise valid principal obligation?
- A debtor wants to abandon performance and simply pay the stipulated penalty. The contract expressly reserves no such op…
- A debtor partly complies with the principal obligation. The creditor demands the full penalty without any equitable adj…
- A debtor has performed nothing under the main contract. A penalty is proved iniquitous or unconscionable in the circums…
- A contract contains a demandable penalty and no clear grant allowing simultaneous fulfillment and penalty. The creditor…
- Explain the substitute function of a penalty and the Article 1226 exceptions concerning damages.
- Distinguish the two bases for reduction under Article 1229.
- Explain the different effects of an invalid penalty clause and an invalid principal obligation.
- Does a written penal clause become enforceable before it is legally demandable merely because it exists in the contract?
- If a debtor commits fraud in fulfilling the obligation, does Article 1226 categorically bar damages beyond the penalty?