Article 1484
ELI5— what this means for you
The Recto Law (installment sales of personal property): in case of default, the seller can (1) demand exact fulfillment, (2) cancel the sale (return the thing, keep the paid installments as rentals), or (3) foreclose — but cannot do all three.
Key point
A seller of personal property on installment must choose one remedy — they cannot foreclose AND claim the balance.
Official text — RA 386
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:
(1) Exact fulfillment of the obligation, should the vendee fail to pay;
(2) Cancel the sale, should the vendee's failure to pay cover two or more installments;
(3) Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the vendee's 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 to the contrary shall be void. (1454-A-a)
Source: lawphil.net (RA 386 as amended)
Related
RELATED RIGHTS
Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on contracts, property rights, obligations, or civil damages, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.