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    Article 1226 OBLICON

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    Gwen Caldona
    The document discusses penal clauses in obligations. A penal clause attaches an additional obligation to pay a penalty in case of breach of the principal obligation. It serves to encourage fulfillment of the obligation or substitute for damages. A penal clause becomes demandable upon breach, whereas a condition does not. There are different types of penal clauses depending on their origin, purpose, and demandability. The penalty may be enforced when it is demandable according to the provisions of the code, such as in cases of breach or fraud.

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    Article 1226 OBLICON

    Uploaded by

    Gwen Caldona
    180 views1 page
    The document discusses penal clauses in obligations. A penal clause attaches an additional obligation to pay a penalty in case of breach of the principal obligation. It serves to encourage fulfillment of the obligation or substitute for damages. A penal clause becomes demandable upon breach, whereas a condition does not. There are different types of penal clauses depending on their origin, purpose, and demandability. The penalty may be enforced when it is demandable according to the provisions of the code, such as in cases of breach or fraud.

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    Article-1226-OBLICON

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    The document discusses penal clauses in obligations. A penal clause attaches an additional obligation to pay a penalty in case of breach of the principal obligation. It serves to encourage fulfillment of the obligation or substitute for damages. A penal clause becomes demandable upon breach, whereas a condition does not. There are different types of penal clauses depending on their origin, purpose, and demandability. The penalty may be enforced when it is demandable according to the provisions of the code, such as in cases of breach or fraud.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    180 views1 page

    Article 1226 OBLICON

    Uploaded by

    Gwen Caldona
    The document discusses penal clauses in obligations. A penal clause attaches an additional obligation to pay a penalty in case of breach of the principal obligation. It serves to encourage fulfillment of the obligation or substitute for damages. A penal clause becomes demandable upon breach, whereas a condition does not. There are different types of penal clauses depending on their origin, purpose, and demandability. The penalty may be enforced when it is demandable according to the provisions of the code, such as in cases of breach or fraud.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Article 1226.

    In obligations with a
    penal clause, the penalty shall Differences between a condition and
    substitute the indemnity for damages a penal clause
    and the payment of interests in case of A penal clause first constitutes an
    non-compliance, if there is no obligation while a condition does not.
    stipulation to the contrary. A penal clause is demandable in the
    Nevertheless, damages shall be paid if default of the unperformed obligation
    the obligor refuses to pay the penalty while a condition is never
    or is guilty of fraud in the fulfillment demandable.
    of the obligation.
    The penalty may be enforced only Kinds of Penal Clause
    when it is demandable in accordance 1. Origin
    with the provisions of this Code. a. Legal penal clause - provided by law
    b. conventional penal clause -
    Principal and Accessory Obligations provided by the stipulation of the
    1. Principal obligation - An obligation parties
    that can stand by itself and does not 2. Purpose
    depend for its validity and existences a. Compensatory penal clause -
    through another obligation. penalty substitutes damages.
    2. Accessory obligation - An obligation b. Punitive penal clause - penalty due
    that is attached to a principal to breach or violation
    obligation and cannot stand alone. 3. Demandability or effect
    a. Subsidiary or alternative penal
    Obligation with a Penal Clause clause - only the penalty can be
    An obligation which contains an enforced
    accessory undertaking to pay a b. Joint or cumulative penal clause -
    previously agreed indemnity in case of both principal obligation and penal
    violation of the principal prestation, clause can be enforced.
    intended primarily to encourage its
    fulfillment. The creditor may recover damages and
    interests when:
    Penal Clause - the stipulation by the parties says so
    It is an accessory undertaking attached - the debtor refuses to pay the penalty
    to an obligation to assume greater - the debtor is guilty of fraud in the
    liability in case of breach. performance of the obligation

    Purposes of a Penal Clause The penalty may be enforced when it


    -to insure their fulfillment by creating is demandable.
    an effective restraint against breach The penalty is demandable only if
    (reparation). there is a breach of the obligation and
    -to substitute a penalty for the it is not contrary to law, good morals,
    indemnity for damages and the good customs, public order or public
    payment of interests in case of non- policy.
    compliance or to punish the debtor for If the obligation is unperformed due to
    non-fulfillment or violation of his a fortuitous event, the penalty is not
    obligation (Punishment). demandable.

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