The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor. Even if there has been no performance, the penalty may also be reduced by the courts if it is iniquitous or unconscionable. (1154a)
Ang hukom ay makatuwiran babaan ang tubo kapag ang kabuuhan ng obigasyon ay bahagya o hindi natupad ng may pagkakautang. Ganun din kung hindi pa nakapagbayad, ang tubo ay maaring babaan ng hukuman kung ito at hindi makatarungan at patas.
Case Illustration: The Bacharach Motor Co. Inc. vs. Faustino Espiritu, Rosario Espiritu
Obligations and Contracts 