Civil Code Article 250June 19, 2019

The parties may agree on a penalty to be paid by the debtor in case the debtor does not perform the obligation. "Unless otherwise agreed upon by the parties, the penalty shall be deemed to be the total amount of damages due to the non-performance. If it is agreed that the penalty shall be paid when the debtor does not perform the obligation at the agreed time or in the agreed way, this penalty shall be deemed to be the total amount of damages due to this non-performance, besides the creditor may claim for the performance.

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