Case Digest (G.R. No. 46306)
Facts:
Levy Hermanos, Inc. v. Lazaro Blas Gervacio, G.R. No. 46306. October 27, 1939, the Supreme Court, Moran, J., writing for the Court.
On March 15, 1937, Levy Hermanos, Inc. (plaintiff) sold a Packard automobile to Lazaro Blas Gervacio (defendant). After making an initial cash payment, defendant executed a promissory note for the unpaid balance of P2,400, payable on or before June 15, 1937, with interest at 12% per annum; to secure the note he mortgaged the car to the plaintiff.
Defendant failed to pay the note at maturity. Plaintiff foreclosed the chattel mortgage; at the public sale plaintiff was the highest bidder at P800. On February 24, 1938, plaintiff filed suit in the Court of First Instance of Manila to collect the remaining balance of P1,600 plus interest.
Defendant admitted the complaint, and the parties submitted the case for judgment. The trial court applied Act No. 4122 (incorporated as article 1454-A of the Civil Code) and entered judgment for the defendant. Plaintiff appealed to the Supreme Court.
The Supreme Court reviewed the appeal. The Court considered whethe...(Subscriber-Only)
Issues:
- Does Article 1454-A of the Civil Code (Act No. 4122) apply to a sale where the price was paid partly in cash and partly by a single deferred payment (a promissory note) rather than by installments?
- If Article 1454-A applies, does the vendor’s election to foreclose the mortgage bar further action to re...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)