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Republic of the Philippines


SUPREME COURT
Manila

EN BANC

covering an alleged balance due the plaintiff from the defendant on a promissory note executed by the latter on December 12, 1933. T

Islands, with its principal place of business in the City of Manila, and the defendant, Pablo A. Millan, is of legal age, and a resident of

to the plaintiff his promissory note for the sum of P939 payable in the City of Manila, Philippine Islands, in monthly installments, as m

nd Renault touring car purchased by the said defendant from the plaintiff, as may be seen from the chattel mortgage executed by the
1933, and registered in the office of the Register of Deeds of the City of Manila;

gage by failing to pay the installments which fell due on December 22, 1933, and January 22 and February 22, 1934;

d promissory note, Appendix A, there is still due and owing from said defendant in favor of the plaintiff the sum of P928.50, together w
ade a part hereof; 1ªvvphïl.nët

e said chattel mortgage, Appendix B;

aintiff in payment of the full amount under the promissory note, Appendix A, and the chattel mortgage, Appendix B, but the said plain
er the provisions of article 1454-A of the Civil Code (Act No. 4122 of the Philippine Legislature) and held that inasmuch as that article
of the other alternative, that is, cancel the sale and retain the total amount of the installments already paid on account of the purchas

ho has sold a chattel on installments secured by mortgage of the chattel, has no other alternative but to either foreclose the mortgage
purchaser.

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hase and sale, the contract may be rescinded if the vendee should be willing to forfeit the earnest money or pledge or the vendor to r

e to pay two or more installments shall confer upon the vendor the right to cancel the sale or foreclose the mortgage if one has been

ion against the purchaser for the recovery of any unpaid balance owing by the same, and any agreement to the contrary shall be null

he lessor has chosen to deprive the lessee of the enjoyment of such personal property.

in connection with the foreclosure of chattel mortgages. This amendment prevents mortgagees from seizing the mortgaged property,
himself minus the property and still owing practically the full judgment of his original indebtedness. Under this amendment the vendo
the vendor elects he need not return to the purchaser the amount of the installments already paid, "if there be an agreement to that e

s, executed on chattels which have been sold on the installment plan, the mortgagee is limited to the property included in the mortgag

upon the failure of the purchaser to comply with his obligation under such a contract, exact the fulfillment of that obligation, or does a

rt of article 1124 of the Civil Code, which gives the prejudiced person the right to exact the fulfillment of an obligation?

fail to comply with that which is incumbent upon him, is deemed to be implied.

s resolution with indemnity for losses and payment of interest in either case. He may also demand the resolution of the obligation eve

e vendee fails to comply with the terms of the contract and the right to foreclose a mortgage, if one has been given on such property,
in so far as it refers to these remedies, is merely a redeclaration of rights which existed at the time that law was adopted. This Act ho
ee has failed to pay two or more installments. It furthermore prescribes and limits the rights of the vendor after he has availed himself

available to the person prejudiced by the failure of one of the obligors to comply with the terms of an obligation. Act No. 4122 does no
erms of that Act expressly provide nor do they imply that, upon failure to pay two or more installments on the purchase price of person

o limit the remedies available to a vendor of personal property on the installment plan to the right to cancel the sale or foreclose the m
more installments and furthermore to prescribe and limit the rights of the vendor after he has availed himself of either of the remedies

aled.
ect to exact the fulfillment of the obligation, as the plaintiff has done in this case, cancel the sale or foreclose his mortgage if one has

d against the defendant for the sum of P928.50 with interest thereon at the rate of 12 per cent per annum from March 17, 1934, until p

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