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    Reaction Paper On Section 6

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    Ayen Yambao
    This document provides a summary and analysis of Sections 6 of the Civil Code of the Philippines on Obligations with a Penal Clause. It addresses two problems involving penal clauses. For the first problem, the document concludes that a debtor cannot exempt themselves from delivering a horse by only paying the penal clause amount, as the penal clause is accessory to the principal obligation. For the second problem, the document states that a creditor can still enforce a penal clause even if they cannot prove damages, as actual damages do not need to be proven to demand a penalty.

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    Reaction Paper On Section 6

    Uploaded by

    Ayen Yambao
    1K views2 pages
    This document provides a summary and analysis of Sections 6 of the Civil Code of the Philippines on Obligations with a Penal Clause. It addresses two problems involving penal clauses. For the first problem, the document concludes that a debtor cannot exempt themselves from delivering a horse by only paying the penal clause amount, as the penal clause is accessory to the principal obligation. For the second problem, the document states that a creditor can still enforce a penal clause even if they cannot prove damages, as actual damages do not need to be proven to demand a penalty.

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    Reaction Paper on Section 6

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    This document provides a summary and analysis of Sections 6 of the Civil Code of the Philippines on Obligations with a Penal Clause. It addresses two problems involving penal clauses. For the first problem, the document concludes that a debtor cannot exempt themselves from delivering a horse by only paying the penal clause amount, as the penal clause is accessory to the principal obligation. For the second problem, the document states that a creditor can still enforce a penal clause even if they cannot prove damages, as actual damages do not need to be proven to demand a penalty.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    Reaction Paper On Section 6

    Uploaded by

    Ayen Yambao
    This document provides a summary and analysis of Sections 6 of the Civil Code of the Philippines on Obligations with a Penal Clause. It addresses two problems involving penal clauses. For the first problem, the document concludes that a debtor cannot exempt themselves from delivering a horse by only paying the penal clause amount, as the penal clause is accessory to the principal obligation. For the second problem, the document states that a creditor can still enforce a penal clause even if they cannot prove damages, as actual damages do not need to be proven to demand a penalty.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Civil Code of the Philippines:

    Section 6, Obligations with a


    Penal Clause
    A Reaction Paper on problem 1 and 2 page 200 of the book,
    The Law on Obligations and Contracts by Hector S. De Leon
    Group No. 6, May 11, 2016
    ECE70/ A11
    Yambao, Karen Alyssa M.
    #

    School of Electrical, Electronics, and Computer Engineering Department, Mapua Institute of Technology
    Intramuros, Manila Philippines
    [email protected]

    This document provides an overview on


    the topic of Obligations with a Penal Clause. It covers
    the topics and articles under section 6 of the book.
    Moreover, it explains every situation to make it more
    understandable. This paper aims to educate the
    students about the existing laws in the Philippines and
    make them understand the possible effects or results of
    each obligations as well as the rights involve in such
    cases.

    the penalty, save in case where this right has been


    expressly reserved for him. Neither can the creditor
    demand the fulfillment of the obligation and the
    satisfaction of the penalty at the same time, unless
    this right has been clearly granted him. However, if
    after the creditor has decided to require the
    fulfillment of the obligation, the performance
    thereof should become impossible without his fault,
    the penalty may be enforced. (1153a)

    Keywords penal clause, indemnity, principal


    obligation, accessory obligation, legal penal clause,
    conventional penal clause, compensatory penal clause,
    punitive penal clause, subsidiary penal clause and
    cumulative penal clause

    Article 1228. Proof of actual damages suffered


    by the creditor is not necessary in order that the
    penalty may be demanded. (n)

    Abstract

    I.

    INTRODUCTION

    This paper gives a reaction regarding the


    articles under section 6 of the Laws on the
    Obligations and Contracts.
    Obligations are liabilities, it comes with
    penalties when not fully fulfilled. Penal clause is
    made to compensate or to make assurance on the
    performance of one persons obligations this is to
    create an effective deterrent against breach.
    II.

    Article 1229. The judge shall equitably reduce


    the penalty when the principal obligation has been
    partly or irregularly complied with by the debtor.
    Even if there has been no performance, the penalty
    may also be reduced by the courts if it is iniquitous
    or unconscionable. (1154a)
    Article 1230. The nullity of the penal clause
    does not carry with it that of the principal
    obligation. The nullity of the principal obligation
    carries with it that of the penal clause. (1155)
    III.

    ARTICLES

    Article 1226. In obligations with a penal clause,


    the penalty shall substitute the indemnity for
    damages and the payment of interests in case of
    non-compliance, if there is no stipulation to the
    contrary. Nevertheless, damages shall be paid if the
    obligor refuses to pay the penalty or is guilty of
    fraud in the fulfillment of the obligation.
    Article 1227. The debtor cannot exempt himself
    from the performance of the obligation by paying

    PROBLEMS

    1.

    X promises to deliver to Y a specific


    horse. Their contract contains a penal
    clause that in case of non-fulfilment, X
    shall pay a penalty of P10,000. X wants to
    just pay that penalty instead of delivering
    the horse. Has Y the right to refuse to
    accept the penalty in lieu of the horse?

    2.

    In the same problem, X was able to show


    that Y did not suffer any damage by Xs

    violation of his obligation. Can Y still


    enforce the penalty?
    IV.
    1.

    2.

    ANSWERS TO PROBLEMS

    For the first problem, instead of


    delivering the horse, X just wants to pay
    the penalty of P10, 000 to his seller to
    exempt himself from the obligation of
    delivering the horse. The obligation has a
    penal clause to ensure fulfilment in the
    obligation and it is not intended to exempt
    the obligor from his obligation. In this
    case, Y has the right to refuse to accept
    the penalty in lieu of the horse. According
    to Article 1227. The debtor cannot exempt
    himself from the performance of the
    obligation by paying the penalty. This
    statement clearly say that the action made
    by X is prohibited. Moreover, penalty is a
    type of accessory obligation which comes
    with the principal obligation, it cannot
    stand alone. From the problem, the
    principal obligation is to deliver the horse
    and the accessory obligation is the penalty
    of P10,000 thus, X is not allowed to do
    the accessory obligation since it is not the
    main obligation and he is using penalty
    the wrong way, again penalty is used to
    urge the debtor to the performance of the
    main obligation and not to free himself
    from his main obligation.
    For the second problem, it is said that
    there is no damages suffered by Y due to

    Xs violation and this is proved by X.


    Well, according to Article 1228. Proof of
    actual damages suffered by the creditor is
    not necessary in order that the penalty
    may be demanded. In an obligation with a
    penal clause all that the creditor has to
    prove in order for him to enforce penalty
    is to show that the debtor has violated his
    obligation. It is not necessary for the
    creditor, Y, to show physical evidences for
    the damages and losses that he suffered
    instead he just needs to prove that the
    debtor, X, has violated his obligation.
    Whether the creditor has suffered or not
    he has the right to enforce the penalty if
    debtor X, has been proven to violate his
    obligation.
    V.

    ACKNOWLEDGEMENT

    I would like to thank my parents for their


    unending support. To the One above who always
    gives me hope whenever I feel down and to my
    friends who continue to help me understand the
    topics and give resources on the related topics.
    VI.

    REFERENCES

    [1] De Leon, Hector S. The law on obligations and


    contracts. REX Publishing Inc. pp 190-200, 2014
    Revised edition

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