Page 307 - Important Provisions of The New Civil Code

Article 1226. In obligations with a penal clause,

the penalty shall substitute the indemnity for

damages and the payment of interests in case

of noncompliance, if there is no stipulation to

the contrary. Nevertheless, damages shall be

paid if the obligor refuses to pay the penalty or

is guilty of fraud in the fulfillment of the

obligation.

Article 1235. When the obligee accepts the

performance, knowing its incompleteness or

irregularity, and without expressing any protest

or objection, the obligation is deemed fully

complied with. (n)

Article 1240. Payment shall be made to the

person in whose favor the obligation has been

constituted, or his successor in interest, or any

person authorized to receive it. (1162a)