Cláusula Penal en Contratos: Funcionamiento, Moderación Judicial y Jurisprudencia 2026

# Penalty Clauses in Spanish Contracts: Functioning, Judicial Reduction and Case Law 2026

Under Arts. 1152–1154 of Spain's Civil Code, a penalty clause predetermines the consequences of breach without requiring proof of actual damages. It can be substitutive (replaces ordinary damages) or cumulative (adds to damages, if expressly agreed).

Judicial reduction (Art. 1154 CC): judges may equitably reduce the penalty for partial or irregular performance, but not for total non-performance. The 2022–2025 Supreme Court case law allows B2B parties to contractually exclude this judicial reduction, provided the penalty is not unconscionable.

In consumer contracts (B2C), disproportionate penalty clauses are unfair under Art. 85.6 TRLCU and CJEU doctrine (C-618/10): the clause must be struck out entirely, not reduced.

Lexiel finds Supreme Court decisions on penalty clause reduction by performance type and counterparty, and drafts claims or defences with verified CC and TRLCU citations.