S1: In an obligation with a penal clause, interest and damages, aside from the penalty, may be awarded to the creditor if the debtor is guilty of fraud. S2: In an obligation that is impossible of division, the debt can be enforced only by proceeding against all the debtors. If one of the debtors should be insolvent, the other debtors are not liable for his share. *

(A) both are true

(B) both are false

(C) only S1 is true

(D) only S2 is true.

(A) both are true

S1. Since this is an obligation with penal clause, the provided penalty is taken to substitute the indemnity of the damages. Interest is also paid to the creditor in the event of noncompliance when one is found guilty of a fraud in the fulfillment of an obligation as provided in the contract. In this case, the penalty and the interest need to be paid and is awarded to the creditor when the debtor is found to be guilty. The statement is therefore true

S2. The statement is true since in the event of an obligation that is impossible of division, the article 1209 for the condition of impossibility of the right of the creditors. In this condition, the acts can also be enforced by going against the debtors when one is insolvent and hence requiring all the others to be liable to the share. The indivisibility condition proceeds to make all the other debtors met the obligation as joint debtors.