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r OBLIGATIONS WITH A PENAL CLAUSE
Civil Law Summer Reviewer (See
ATENEO CENTRAL BAR Arts. 1226 – 1230)
OPERATIONS20 07 WITH PENAL CLAUSE– One to which
Pa g e 114 of 297 an accessory

h. Complete/ personal defense – total or undertaking is attached for the

partial ( up to amount of share purpose of insuring its performance
only ) if not personal to him by virtue of which the obligor is
bound to pay a stipulated indemnity
EFFECT OF LOSS OR IMPOSSIBILITY or perform a stipulated prestation
OF THE in case of breach
PRESTATION:
1. If without fault – no liability CHARACTERISTICS OF PENAL
2. If with fault – there is liability CLAUSES:
(also for damage
and interest) 1.Subsidiary - As a general rule, only
3. Loss due to fortuitous event after penalty can be demanded, principal
default – there cannot be demanded, except:
is liability (because of default) Penalty is joint or cumulative
DIVISIBLE AND INDIVISIBLE
OBLIGATIONS (See 2.Exclusive - takes place of damage,
Arts. 1223 – 1225) damage can
DIVISIBLE- obligation that is
capable of partial only be demanded in the ff. cases:
performance a. Stipulation – granting right
• b. Refusal to pay penalty
Execution of certain no of days work c. With dolo ( not of creditor )
•
Expressed by metrical units CAUSES FOR REDUCTION OF
• PENALTY:
Nature of obligation – susceptible of 1. Partial/irregular performance
partial 2. Penalty provided is iniquitous/
fulfillment unconscionable
INDIVISIBLE– one not capable of CHAPTER 4. - EXTINGUISHMENT OF
partial OBLIGATIONS
performance See Arts. 1232 - 1304
• MODES OF EXTINGUISHMENT OF
To give definite things OBLIGATION
• (Art. 1231):
Not susceptible of partial
performance
1. Payment or performance iii.
2. Loss of the thing due
3. Condonation or remission of debt 3rd person pays/performs with
4. Confusion or merger of rights consent of creditor but not with
debtor's consent, the repayment is
5. Compensation only to the extent that the payment
6. Novation has been beneficial to debtor
7. Annulment
8. Rescission b.P aye e
i.
9. Fulfillment of resolutory Payee - creditor or obligee or
condition successor
PAYMENT OR PERFORMANCE in interest of transferee, or agent
- delivery of money and ii.
performance, in any other 3rd person - if any of the ff. concur:
manner of the obligation •
REQUISITES It must have redounded to the
FOR obligee's
VALID •
PAYMENT/PERFORMANCE benefit and only to
1.With respect to prestation itself
a. Identity
b. Integrity or completeness
c. Indivisibility
2.With respect to parties - must be
made by
proper party to proper party
a.P ayor
i.

Payor - the one performing, he can

be the debtor himself or his heirs or
assigns or his agent, or anyone
interested in the fulfillment of the
obligation; can be anyone as long as
it is with the creditor's consent

ii.

3RD person pays/performs - only the

creditor's consent; If performance is
done also with debtor's consent - he
takes the place of the debtor. There
is subrogation except if the 3rd
person intended it to be a donation