Question

The general rule here is that interest stipulated in the agreement is generally substitute for fine. If parties agree, interest stipulated and fine should be paid.

choices:

a. Simple obligation

b. Alternative obligation

c. Facultative obligation

d. Obligation with a penalty

Answer 1

The correct answer is C. Facultative obligation

Explanation:

Simple obligation is an unconditional obligation, one which is needed to be performed without depending upon any event provided by the parties to it.

An obligation is said to be alternative when two things are equally due, under a given alternative. The obligor is bound to render only one of two or more items of performance.

Facultative obligation is that type of obligation where one thing is due, but another is paid in its place. In such type of obligations there is no alternative provided.

An obligation with a penalty is a penalty clause which express a provision in a contract. It places an obligation upon the party who has breached the contract to provide compensation to the aggrieved party affected by the breach.