Article 1229

RA 386 · Civil Code of the Philippines

ELI5— what this means for you

Courts may reduce the contractual penalty if: (1) the obligation has been partly complied with, or (2) the penalty is unconscionable (unfairly excessive).

Official text — RA 386

The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor. Even if there has been no performance, the penalty may also be reduced by the courts if it is iniquitous or unconscionable. (1154a)

Source: lawphil.net (RA 386 as amended)

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