Mr. Buyer bought a car from Mr. Seller, a dealer of cars under the following terms:
(i) down payment of P500,000;
(ii) entire balance is to be paid on December 24, 2004;
(iii) a chattel mortgage is to be executed over the car bought or sold in favor of Mr. Seller. If on the due date for the balance, no payment is paid despite demand.

Related MCQs

• A & B entered into a contract of sale over A’s car for P500,000.00. A has to register the car first before payment and delivery. After the registration of the car, A called up B that the car was ready for pick up. B asked him to send his driver to deliver the car as he was going to pay before delivery. B was able to convince the driver to leave the car at his garage and will just deposit the amount with A’s account for fear that the driver might be the subject of a hold-up. Instead of depositing the amount, he sold the car to C. Can A recover the car from C?
• A borrowed money from B. As security for the payment of the loan, he executed a chattel mortgage on the building erected on his land and the machinery stored therein. For failure to pay the loan, he was sued and a judgment was rendered against him, where the building and the machinery were levied upon. Is the chattel mortgage binding upon C, the plaintiff?
• 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?
• Seller wrote a letter to Buyer offering to sell a piece of land for P500,000. Seller gave Buyer two months to decide and pay the purchase price. Before the lapse of two months, Seller wrote Buyer that the price is now P700,000. Buyer insisted on an acceptance for P500,000. He wants to compel Seller to execute a deed of sale for the original offer of P500,000. May the Seller be compelled to honor the P500,000 offer?
• Mr. X executed a chattel mortgage over his house and lot to Mr. Y. When the obligation became due, Mr. X did not pay despite demand.
• No. 1 – The mortgagor in a real estate mortgage may sell the property mortgaged despite a prohibition to that EFFECT. No. 2 – If there is a balance after the foreclosure sale in a chattel mortgage arising he deficiency cannot be recovered.
• Mr. Seller offered a parcel of land to Mr. Buyer No. 1 under a contract to sell. Subsequently, Mr. Seller sold the same land to Mr. Buyer No. 2 who paid the price. After a couple of days, Mr. Buyer No. 1 paid the price. Which is correct?
• Seller wrote Buyer offering to sell his only house for a specified price. The letter was mailed on the same date it was written. Buyer offered to buy the same house for the same price and the letter containing the offer to buy was also mailed on the same date it was written. On the same date and time Seller and Buyer received the letters written to each other.
• Debtor owes Creditor P500,000. The debt is secured by a chattel mortgage on Debtor’s car. On the due date of the obligation, Creditor is paid by Third Person who has no interest in the obligation either as guarantor or surety. There is likewise no stipulation as to Third Person’s right to pay.
• Mr. Seller and Mr. Buyer orally agreed on the following: (i) the land to be sold has an area of 10,000 sq. meters; (ii) price is P5 million; and (iii) Mr. Seller shall prepare the deed of sale. With fraudulent intent, Mr. Seller knowing the inadequacies of Mr. Buyer with respect to numbers wrote 1,000 sq. meters instead of 10,000 sq. meters. The sale is