Cap. 16 Art. 1124Penalty clause in divisible obligation.

(1) Where the principal obligation contracted with a penalty clause is divisible, and one of the heirs of the debtor infringes the obligation, the penalty shall be incurred only by such heir, and only for the share of the principal obligation for which he is liable, and no action shall lie against those who have performed the obligation.

(2) The rule laid down in sub-article (1) of this article shall not apply to cases where the penalty has been stipulated in order that payment should not be made in part, and one of the co-heirs has prevented the performance of the obligation in its entirety. In any such case, such co-heir is liable for the entire penalty, and the others are liable for their respective shares only, saving their right of relief against the defaulter.

§ VII. OF FIDUCIARY OBLIGATIONS