A sold a car to B on installment basis secured by a chattel mortgage over the thing and a promissory note co-signed by C. A failed to pay four (4) monthly installments. Under the contract in case of non-payment, the vendor can exercise any of the remedies under Art. 1484, NCC and in case of deficiency, the seller can recover the balance. What is the remedy of A?
A) A can file an action for the foreclosure of the mortgage and recover the unpaid balance because of the contract.
B) A can foreclose the mortgage and recover the unpaid balance because the Chattel Mortgage Law does not prohibit recovery.
C) A can foreclose the mortgage but cannot recover the unpaid balance because it is absolutely prohibited by law.
D) A can foreclose the mortgage and can recover the unpaid balance from C since B & C are solidarily liable.
Correct Answer:
Verified
Q1: A is the owner of a parcel
Q2: With abuse of confidence, A was able
Q3: Which of the following statements is correct?
A)A
Q5: A entered into a contract of sale
Q6: A sold a parcel of land covered
Q7: A is the owner of a parcel
Q8: A & B entered into a contract
Q9: What is the nature of a contract
Q10: X and Y entered into a contract
Q11: A, B, C, D are the co-owners
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents