Obligations with a Penal Clause Flashcards
1
Q
General Rule in Obligations with a penal clause
A
In obligations with a penal clause, the penalty shall substitute the indemnity for damages and the payment of interests in case of noncompliance if there is not stipulation to the contrary. Nevertheless, damages shall be paid if the obligor refuses to pay the penalty or is guilty of fraud in the fulfilment of the obligation.
the penalty may be enforced only when it is demandable in accordance with the provisions of this Code.
