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.

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References to other articles of chapter 25. Responsibility for violation of obligations:
Article 393. The duty of the debtor to pay damages.
Article 395. Responsibility for the default of a monetary obligation.
Article 396. Responsibility and fulfillment of obligations in kind.
Article 397. Fulfillment of an obligation at the expense of the debtor.
Article 398. Consequences of non-fulfillment of the obligation to transfer an individually-defined thing.
Article 399. Subsidiary liability.
Article 400. Limitations on liability for obligations.
Article 401. Grounds for liability for breach of obligation.
Article 402. The responsibility of the debtor for its employees.
Article 403. The responsibility of the debtor for the actions of third parties.
Article 404. Wines of a creditor.
Article 405. The delay of the debtor.
Article 406. Delay of a creditor.