Text of the provision
Art. 1229. 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)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
The judge must reduce the penalty when the principal obligation has been partly or irregularly performed, and may reduce it even without performance if it is iniquitous or unconscionable. Courts routinely trim excessive penalty and interest stipulations under this article.
Related provisions
- Article 1228 — Penalty Without Proof of Damage.
- Article 1230 — Nullity of the Penal Clause vs. the Principal.
Cases citing this article
- Lara's Gifts & Decors, Inc. vs. Midtown Industrial Sales, Inc, G.R. No. 225433, September 20, 2022 — read the decision on LawPhil →
- Spouses Jaime and Matilde Poon vs. Prime Savings Bank represent by the Philippine Deposit Insurance Corporation as Statutory Liquidator, G.R. No. 183794, June 13, 2016 — read the decision on LawPhil →
- Unified Financing Corp., vs. Spouses Juan and Estelita G. Tolentino, and Spouses James and Liwayway G. Tolentino, G.R. No. 271304, February 24, 2025 — read the decision on LawPhil →
- Romago, Inc. and Francisco Gonzalez vs. Associated Bank (Now United Overseas Bank Phils.) and Metallor Trading Corporation, G.R. No. 223450, February 22, 2023 — read the decision on LawPhil →
- La Filipina Uy Gongco Corporation vs. Harbour Centre Port Terminal, Inc, G.R. No. 229490, March 1,2023 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.