Practice question
A contract fixes a penalty for missing a delivery deadline. The parties validly extend that deadline, and the new date has not arrived. No other triggering breach exists. The creditor says no actual-damages proof means the penalty is already collectible. Which is correct?
- Absence of proof requirements removes every trigger
- Every penalty is payable at signing
- Extension always doubles the penalty
- Dispensing with proof of actual damage does not dispense with legal demandability and the contractual trigger
- Only the creditor may secretly choose a deadline
Legal references
- Civil Code, Articles 1209-1210,1223-1230,1238-1243,1266-1268 and1423-1430: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
Answer this question in flashcards to review your response and continue practicing.