question archive In obligations with a penal clause, the creditor, as a rule, may recover from the debtor in case of breach the following: * (A) the penalty as agreed upon, plus damages and interest
In obligations with a penal clause, the creditor, as a rule, may recover from the debtor in case of breach the following: * (A) the penalty as agreed upon, plus damages and interest
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In obligations with a penal clause, the creditor, as a rule, may recover from the debtor in case of breach the following: *
(A) the penalty as agreed upon, plus damages and interest.
(B) the penalty and damages.
(C) the penalty and interest.
(D) penalty, interest and damages.
(E) only the penalty.
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In obligations with a penal clause, the creditor, as a rule, may recover from the debtor in case of breach the following
(E) only the penalty.
If the agreement contains a stipulation (i.e penal clause) that in case of noncompliance, the person obliged shall pay a certain fine, there is no more need for payment for damages or for interests, except when the parties agreed that there must still be payment of the same.
This is because as a general rule, 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.
However, the parties may stipulate to override the general rule by requiring that the debtor in case of noncompliance shall pay both a certain fine agreed upon and the damages and interests for failure to perform the obligation.
