Civil Code Art. 1226: Different Kinds of

Statute: Civil Code
Article: Art. 1226
Topic: Different Kinds of Obligations
Book: BOOK IV Obligations and Contracts
Title: TITLE I Obligations
Chapter: CHAPTER 3 Different Kinds of Obligations
Formerly: Art. 1152a of the old Civil Code
Year: 1949

The provision

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 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. The penalty may be enforced only when it is demandable in accordance with the provisions of this Code. (1152a)

Cases applying this article

Merrie Anne Tan v. First Malayan Leasing G.R. No. 254510

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