Practice question
A debtor wants to abandon performance and simply pay the stipulated penalty. The contract expressly reserves no such option. May he compel this substitution under Article 1227?
- No, the right to exempt himself by paying the penalty must be expressly reserved
- Yes, every penalty creates an alternative obligation
- Yes, if the debtor prefers the cheaper choice
- Yes, if no actual damages are shown
- Yes, because the creditor cannot sue
Legal references
- Civil Code, Article 1227: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
Answer this question in flashcards to review your response and continue practicing.