Recto Law free essay sample

Recto Law was to remedy the abuses committed in connection with the foreclosure of chattel mortgages and was meant to prevent mortgagees from seizing the mortgaged property, buying it at foreclosure sale for a low price and then bringing suit against the mortgagor for a deficiency Judgment. Under Article 1484 of the New Civil Code, 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 buyer fail to pay any installment; 2. Cancel the sale, should the buyers failure to pay cover two or more installments; 3. Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the buyers failure to pay cover two or more installments. The remedies have been recognized as alternative, not cumulative, in that the xercise of one would also bar the exercise of the others. We will write a custom essay sample on Recto Law or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They cannot also be pursued simultaneously. If the seller should foreclose on the mortgage constituted on the thing sold, 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. The provisions of Recto Law are applicable to financing transactions derived or arising from sales of movables on installments, even if the underlying contract at issue is a loan because the promissory note has been assigned or negotiated by the original seller.