A executed a contract by which he agreed to pay a certain amount to B for services rendered by the latter. In the contract, it is expressly stipulated that if A should fail to pay the amount after the lapse of 30 days, he shall pay a surcharge of 10% for every 30 days of default until the amount has been fully paid. Because of A's failure to pay the amount within the period stipulated, B brought this action to recover the amount plus the penalty and damages. The lower court rendered the amount plus the penalty and damages. The lower court rendered a decision awarding to B not only the surcharge but also 6% interest per annum by way of damages. A now claims that the surcharge of 10% for every 3O days of default is unconscionable because it is tantamount to imposing an interest at 10% a month and, therefore, should be reduced, and that the award of 6% interest per annum by way of damages is contrary to law since according to Art 1226 of the New Civil Code, the penalty shall be a substitute for damages or interests. Decide the case. 30pts