Spouses Romulo de La Cruz v. Asian Consumer

Summary

This case involves the application of the Recto Law (Article 1484, New Civil Code) regarding alternative remedies in installment sales. Purchasers of a truck defaulted on payments, prompting the finance company to attempt extrajudicial foreclosure. When the sheriff failed to repossess the vehicle, the purchasers later voluntarily delivered it. The finance company then sued for the unpaid balance. The Supreme Court held that since no actual foreclosure sale occurred, the company could pursue collection of the balance. However, to prevent unjust enrichment, the Court ordered either return of the vehicle or deduction of its appraised value from the liability. The decision clarifies that under the Recto Law, remedies are alternative and that mere possession without foreclosure sale does not bar collection actions.