Page 28 - Obligations & Contracts Module 1-2

(8) Divisible – obligation that is capable of partial performance

a. execution of certain no of days work
b. expressed by metrical units

c. nature of obligation – susceptible of partial fulfillment

(9) Indivisible – one not capable of partial performance

a. to give definite things

b. not susceptible of partial performance

c. provided by law

d. intention of parties

(10) With Penal Clause - an accessory undertaking to assume greater liability in

case of breach

*Characteristics of Penal Clause:

1. Subsidiary - As a general rule, only penalty can be demanded, principal cannot be demanded,

except: Penalty is joint or cumulative

2. Exclusive - takes place of damage, damage can only be demanded in the following cases:

a. Stipulation – granting rights

b. refusal to pay penalty

c. with dolo ( not of creditor )

*Causes for Reduction of Penalty:

a. partial/irregular performance

b. penalty provided is iniquitous/unconscionable