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The Effects of a Contract under a Penalty
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Wouters, Manual of Moral Theology
Vol. I, Bk. II, Tr. II, Diss. I, Pt. VII, Sect. I, Ch. II, Art. I, § VI, Point VI. On the Effects of a Contract under a Penalty
I. Notion. A contract under a penalty is had when a fine is added to the contract, to be paid for omission or delay of execution.
II. Effects. 1. If the penalty has been established because of omission, the creditor can demand either execution of the contract or the penalty; if it has been established only because of delay, he can demand both, that is, both execution of the contract and the penalty.
The penalty does not oblige unless there has been at least juridical fault; theological fault is not required.
The penalty is owed before the sentence of the judge, yet not before it is sought by the creditor; for such is presumed to be the intention of the contracting parties.