Article 394. Losses and penalties.
1. If a penalty has been established for non-performance or improper performance of an obligation, the losses are reimbursed in the part not covered by the penalty. The law or the contract may provide for the following cases: when only penalties are allowed, but not damages; when damages can be recovered in full in excess of the penalty; when at the option of the creditor either a penalty or damages can be recovered. 2. In cases where limited liability (Article 400) is established for non-performance or improper performance of an obligation, damages that are subject to compensation in the part not covered by the penalty or above or in lieu of it may be recovered to the limits specified by such restriction.
References to other articles of chapter 25. Responsibility for violation of obligations: