LAW ON SALES/ NONATO VS. INTERMEDIATE APPELLATE COURT/ 140 SCRA 255 (NOVEMBER 22, 1985)

 LAW ON SALES CASE DIGEST
NONATO VS. INTERMEDIATE APPELLATE COURT
140 SCRA 255 (NOVEMBER 22, 1985)

TOPIC/DOCTRINE

A seller where the buyer fails to pay the personal property in installments is an alternative, not cumulative, that the exercise of one would bar the exercise of the others.

FACTS

            On June 28, 1976, defendant spouses Restituto Nonato and Ester Nonato purchased one (1) unit of Volkswagen Sakbayan from the People's Car, Inc., on an installment basis. To secure complete payment, the defendants executed a promissory note and a chattel mortgage in favor of People's Car, Inc. People's Car, Inc., assigned its rights and interests over the note and mortgage in favor of the plaintiff Investor's Finance Corporation (FNCB).

            For failure of defendants to pay two or more installments, despite demands, the car was repossessed by the plaintiff on March 20, 1978."Despite repossession, the plaintiff demanded from the defendants that they pay the balance of the price of the car.

ISSUE

Whether the vendor or his assignee, who had canceled the sale of a motor vehicle for the failure of the buyer to pay two or more of the stipulated installments, may also demand payment of the balance of the purchase price.

RULING

The court ruled in the negative.

            The court held that remedies of a seller where the buyer fails to pay the personal property in installments is an alternative, not cumulative, that the exercise of one would bar the exercise of the others.

            Here, the court held that the acts performed by the corporation are wholly consistent with the conclusion that it had opted to cancel the contract of sale of the vehicle. It is thus barred from exacting payment from petitioners of the balance of the price of the vehicle which it had already repossessed. It cannot have its cake and eat it too.

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