Petitioner
The Bachrach Motor Co.
Respondent
Pablo A. Millan
Citation
G.R. No. 42256
Court
Supreme Court En Banc
Division
En Banc
Ponente
Goddard, J.
Decided
April 25, 1935

Summary

This landmark 1935 Supreme Court case clarified vendor remedies in installment sales of personal property. Bachrach Motor Co. sued Pablo Millan for the unpaid balance on a car purchase after he defaulted on installment payments. The trial court dismissed the case, holding that under Article 1454-A of the Civil Code, vendors must choose between canceling the sale or foreclosing the mortgage. The Supreme Court reversed, ruling that Article 1454-A did not repeal Article 1124's provision allowing creditors to exact fulfillment of obligations. The Court held that vendors have three options: exact fulfillment, cancel the sale, or foreclose the mortgage. This decision preserved traditional contract remedies while maintaining the protective provisions of the installment sales law against chattel mortgage abuses.

Statutes applied

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By Intellegal Editorial Board · April 25, 1935

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