In Northern Motors Inc. v. Sapinoso, the Supreme Court clarified that under the Recto Law, a seller is barred from recovering the unpaid balance of the purchase price only after an actual foreclosure sale of the chattel. Mere filing of a replevin action does not preclude accepting payments from the buyer.
Northern Motors Inc. vs. Sapinoso [May 29, 1970] Read More »
In Tajanlangit v. Southern Motors, the Supreme Court ruled that under Article 1484 of the Civil Code, a seller can choose to sue for the full purchase price if a buyer defaults on installment payments. This choice allows the seller to seek the entire amount owed, even if the purchased goods are repossessed.
In Delta Motors v. Niu Kim Duan and Chan Fue Eng, the Supreme Court ruled that installment payments in a conditional sale can be treated as rental payments if specified in the contract. However, once the seller opts for rescission and repossession, they cannot also demand the unpaid balance, as remedies under Article 1484 of the Civil Code are alternative, not cumulative.
Delta Motors vs. Niu Kim Duan and Chan Fue Eng [September 2, 1992] Read More »
In Nonato v. Intermediate Appellate Court, the Supreme Court ruled that when a seller repossesses a vehicle due to the buyer’s default on installment payments, it effectively cancels the sale. Consequently, the seller cannot demand the unpaid balance, as remedies under Article 1484 of the Civil Code are alternative, not cumulative.
Nonato vs. Intermediate Appellate Court [November 22, 1985] Read More »
