question archive X promised to construct a house for Y
Subject:LawPrice:1.87 Bought7
X promised to construct a house for Y. The contract carried a penal clause that in case of non-compliance, X would have to pay a penalty of P100,000.00. X did not construct the house and, as a consequence, Y suffered damages in the amount of P40,000.00. Which among the following is correct?
Answer:
C. X is liable to Y the amount of P100,000.00.