RECTO LAW

(Art. 1484, 1485, New Civil Code)

It provides that in a contract of sale of personal property the price of

which is payable in installments, the vendor may exercise any of the
following remedies:

a. Exact fulfillment of the obligation ,

should the vendee fail to pay ( Specific performance)

b. Cancel the sale,

should the vendees failure to pay cover two or more

installments
Not the same with rescission
Vendor gets back the object of the sale and retains the
installments paid (however, available only if stipulated in
the contract)

c. Foreclose the chattel mortgage on the thing sold,

if one has been constituted, should the vendees failure to

pay cover two or more installments
In this case, he shall have no further action against the
purchaser to recover any unpaid balance of the price
Any agreement is void

RULES
a. Applies only sale of personal property in installments

Does not apply to a simple loan

b. Remedies are alternative nor cumulative

Exercise of one bars exercise of another unless it was not

actually fully exercise
For instance, the filing of the collection case cars
foreclosure
However, recovery of the property through a replevin case
preparatory to foreclosure will not bar the other remedies if
there was no actual foreclosure

c. Foreclosure of chattel mortgage on the things sold shall bar

recovery of any deficiency

Seller cannot recover from guarantor

However, if there is a real estate mortgage over another
property, the foreclosure thereof will not bar recovery of
any deficiency because he is in effect availing of the
remedy of exacting fulfillment of the obligation rather than
foreclosure of mortgage ( Catindig diff. view)

d. If seller-mortgagee opts to exercise remedy no. 1, he shall be

deemed to have waived his right as a mortgagee but may still levy
on the mortgage property