Atlas · Governance
The value of the penalty imposed in the penalty clause cannot exceed that of the principal obligation
Reviewed on 2026-10-02 · next review 2027-04-02
Data
| Who | Criterion | Consequence | Source | Data date |
|---|---|---|---|---|
| Debtor and creditor | Penalty imposed in the penalty clause | The value cannot exceed that of the principal obligation | Lei n.º 10.406/2002, art. 412 | 10/01/2002 |
Data consulted on 02/10/2026.
Basis
- Lei n.º 10.406/2002 (Planalto, in Portuguese): art. 412 establishes that the value of the penalty imposed in the penalty clause cannot exceed that of the principal obligation.
How it applies
The stipulation of the penalty clause in contracts or obligations observes the maximum limit established by law by the Brazilian Civil Code, as provided for in the legislation. The value of the imposed penalty cannot exceed the amount of the corresponding principal obligation agreed upon between debtor and creditor. According to the current legal system and Lei n.º 10.406/2002, the debtor incurs the penalty clause provided they culpably fail to fulfill the obligation or default, which may refer to complete non-performance, breach of a special clause, or simply default, but always strictly respecting the legal ceiling corresponding to the total value of the principal obligation originally stipulated in the legal business, thus ensuring contractual balance between the parties involved in the obligation relationship governed by national civil law.
Limits
- The sheet exclusively covers the maximum limit established by the cited article, encompassing the stipulation of the penalty clause in contracts.
- Subsequent amendments and normative updates must be checked at the official Planalto source, ensuring legal certainty in the application of the law.