Civil Code, Article 2227 — Reduction of Iniquitous Liquidated Damages

What this article means

Liquidated damages, whether meant as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable — the courts are not bound by an oppressive figure.

Questions about this provision

• The penalty in my contract is enormous compared to the actual breach — can a court reduce it?

Related provisions

• Article 2226 — Liquidated Damages Defined.
• Article 2228 — Partial or Irregular Performance.

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 →
• William C. Louh, Jr. and Irene L. Louh vs. Bank of the Philippine Islands, G.R. No. 225562, March 8, 2017 — read the decision on LawPhil →
• Clarita D. Aclado vs. Government Service Insurance System, G.R. No. 260428, March 1, 2023 — read the decision on LawPhil →
• In the Matter of Urgent Petition for the Release of Prisoners on Humanitarian Grounds, G.R. No. 252117, July 28, 2020 — read the decision on LawPhil →
• Luis Juan L. Virata and UEM-Mara Philippines Corporation vs. Alejandro Ng Wee Westmont Investment Corp., et al./Westmont Investment, Corporation vs. Alejandro Ng Wee/Manuel Estrella vs. Alejandro Ng Wee/Simeon Cua, et al. vs. Alejandro Ng Wee/Anthony T. Reyes vs. Alejandro Ng Wee, et al, G.R. No. 220926 / G.R. No. 221058 / G.R. No. 221109 / G.R. No. 221135 / G.R. No. 221218, July 5, 2017 — 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.