SECTION 5. STIPULATED DAMAGES Art. 2005. Secondary obligation Parties may stipulate the damages to be recovered in case of nonperformance, defective performance, or delay in performance of an obligation. That stipulation gives rise to a secondary obligation for the purpose of enforcing the principal one. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
Art. 2006. Nullity of the principal obligation Nullity of the principal obligation renders the stipulated damages clause null. Nullity of the stipulated damages clause does not render the principal obligation null. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
Art. 2007. Stipulated damages or performance An obligee may demand either the stipulated damages or performance of the principal obligation, but he may not demand both unless the damages have been stipulated for mere delay. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
Art. 2008. Failure to perform justified An obligor whose failure to perform the principal obligation is justified by a valid excuse is also relieved of liability for stipulated damages. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
Art. 2009. Obligee not bound to prove damage An obligee who avails himself of a stipulated damages clause need not prove the actual damage caused by the obligor’s nonperformance, defective performance, or delay in performance. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
Art. 2010. Obligor put in default An obligee may not avail himself of a clause stipulating damages for delay unless the obligor has been put in default. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
Art. 2011. Benefit from partial performance Stipulated damages for nonperformance may be reduced in proportion to the benefit derived by the obligee from any partial performance rendered by the obligor. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
Art. 2012. Stipulated damages may not be modified Stipulated damages may not be modified by the court unless they are so manifestly unreasonable as to be contrary to public policy. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.
