Philippine Bar review · Question

Practice question: Obligations with a Penal Clause

Multiple Choice Hard Jurisprudence

Practice question

A contract contains a demandable penalty and no clear grant allowing simultaneous fulfillment and penalty. The creditor elects performance and demands both as an automatic entitlement. Performance remains possible. Which is correct?
  1. Both are always cumulative
  2. Only the debtor’s preference controls
  3. The penalty automatically erases every obligation
  4. Article 1227 generally bars simultaneous demands absent a clear grant; its separate later-impossibility qualification must be assessed only when those facts exist
  5. All penalty clauses are void

Legal references

  • Civil Code, Article 1227: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360

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