X promised to construct a house for Y

Subject:LawPrice:1.87 Bought7

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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?

1. 1. X is liable to Y the amount of P40,000.00.
   2. X is liable to Y the amount of P140,000.00.
   3. X is liable to Y the amount of P100,000.00.
   4. X is liable to Y the amount of P140,000.00 plus any interest that will accrue.