(1) If the obligor has promised the penalty in the event of their failing to perform their obligation properly, including performance at the specified time, the obligee may demand the payable penalty in addition to performance.
(2) If the obligee has a claim for damages for the improper performance, the provisions of section 340 (2) apply.
(3) If the obligee accepts performance, they may demand the penalty only if they reserved the right to do so on acceptance.