Article 2227

RA 386 · Civil Code of the PhilippinesKey provision

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Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Official text — RA 386

Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Source: lawphil.net (RA 386 as amended)

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