A lent money to B with a penalty clause providing for 6% per month. In case a suit is filed, what do you think the court will do with the penalty?

Question

TuteeHUB · Accepted Answer

It will declare the penalty void as it is contrary to morals.

TuteeHUB · Answer

It will declare it void because it is contrary to law;

TuteeHUB · Answer

It will declare it void because it is contrary to public policy;

TuteeHUB · Answer

It will reduce the penalty. (Art. 1229, NCC);

1.	A lent money to B with a penalty clause providing for 6% per month. In case a suit is filed, what do you think the court will do with the penalty?
A.	It will declare it void because it is contrary to law;
B.	It will declare it void because it is contrary to public policy;
C.	It will reduce the penalty. (Art. 1229, NCC);
D.	It will declare the penalty void as it is contrary to morals.
Answer» D. It will declare the penalty void as it is contrary to morals.

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