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Question
(a) Identify the controlling doctrine governing penal clauses (pena convencional) in obligations.
(b) Apply to the following scenario: Z, a landowner, enters into a contract to sell to Y a parcel described in TCT No. 6688. The agreement requires delivery of a title that is clean and transferable by August 31, 2025, and to be registered in the Registry of Deeds. The contract includes a penal clause: If Z fails to deliver the title by the due date, Z shall pay Y ₱260,000 as liquidated damages for each month of delay. Delivery has not occurred as of September 5, 2025. Y sues for specific performance and for the liquidated damages. What remedies are available to Y, and how does the penal clause interact with the principal obligation to deliver a clean title?