Civil Code Art. 1484: Nature and Form

Statute: Civil Code
Article: Art. 1484
Topic: Nature and Form of the Contract
Status: In force, as amended
Book: BOOK IV Obligations and Contracts
Title: TITLE VI SALES
Chapter: CHAPTER 1 Nature and Form of the Contract
Year: 1949
Cited by: Multiple Supreme Court decisions

The provision

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)

Intellegal Wiki · In plain terms

In an installment sale of personal property, the seller may choose one of three remedies when the buyer defaults: sue to enforce payment; cancel the sale (if two or more installments are unpaid); or foreclose any chattel mortgage on the item (again if two or more installments are unpaid). If he forecloses, he cannot pursue the buyer for any unpaid balance, and any agreement to the contrary is void.

An editorially maintained plain-language explanation of this provision — not legal advice.

Note: these provisions are known as the Recto Law, on the sale of personal property by installments, and remain in force.

Cases applying this article

Dr. Macario Q. Falcon v. The Honorable Intermediate Appellate Court G.R. No. 74049
Antonio Locsin Ii v. Mekeni Food Corporation G.R. No. 192105
Pci Leasing v. Giraffe-X Creative Imaging G.R. No. 142618
Metro Manila Transit Corporation v. D.M. Consortium G.R. No. 147594
Rosario v. Pci Leasing G.R. No. 139233
Pameca Wood Treatment Plant v. Teves G.R. No. 106435
Filinvest Credit Corporation v. The Court of Appeals G.R. No. 82508
Montelibano Esguerra v. Hon. Court of Appeals G.R. No. 40062

Other Supreme Court decisions also apply this article.

Related provisions in this Chapter

Civil Code, Art. 1485 Nature and Form of the Contract
Civil Code, Art. 1482 Nature and Form of the Contract
Civil Code, Art. 1481 Nature and Form of the Contract
Civil Code, Art. 1487 Nature and Form of the Contract
Civil Code, Art. 1479 Nature and Form of the Contract
Civil Code, Art. 1478 Nature and Form of the Contract
Civil Code, Art. 1477 Nature and Form of the Contract
Civil Code, Art. 1476 Nature and Form of the Contract

Civil Code, Art. 1484 is found in CHAPTER 1 Nature and Form of the Contract of TITLE VI SALES of BOOK IV Obligations and Contracts of the Civil Code of the Philippines (Republic Act No. 386).

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Reviewed by the Intellegal Legal Team for currency against amending laws and Supreme Court jurisprudence.

Research aid — not legal advice. Verify the current text against the Official Gazette. Provisions may have been amended or repealed. Using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer.