DELTA MOTOR SALES CORP.

v NIU KIM DUAN

appellee, inclusive of interest, was P12,920.08. 12 The case plaintiff-appellee filed was to
seek a judicial declaration that it had validly rescinded the Deed of Conditional Sale.

Niu Kim Duan purchased from Delta Motors 3 air conditioning units. Niu paid the
down payment, the balance payable in 24 instalments. Title to the property remained with
Delta until the payment of the full purchase price.
Under the agreement, failure to pay 2monthly instalments makes the obligation
entirely due and demandable. The units were delivered, Niu failed to pay. Thus, Delta filed a
complaint for Replevin and applied the installments paid by Niu as rentals.
Niu contends that the contractual stipulations are unconscionable.

Clearly, plaintiff-appellee chose the second remedy of Article 1484 in seeking enforcement
of its contract with defendants-appellants. This is shown from the fact that the computation
of the outstanding account of defendants-appellants as of October 3, 1977 took into account
"the value of the units repossessed." Having done so, it is barred from exacting payment
from defendants-appellants of the balance of the price of the three air-conditioning units
which it had already repossessed.

ISSUE: W/N the remedy Delta availed of was unconscionable

FACTS:

FACTS:

TAJANLANGIT v SOUTHERN MOTORS

HELD:
NO. A stipulation in the contract treating installments as rentals in case of failure to
pay is VALID so long as they are not unconscionable. The provision in this case is
reasonable.
An unpaid seller has 3 alternative (not cumulative) remedies:
(1) to exact fulfilment of the obligation;
(2) to cancel the sale for default in 2 installments; and
(3) to foreclose the chattel mortgage.
If the creditor chooses one remedy, he cannot avail himself of the other two.
It is not disputed that the plaintiff-appellee had taken possession of the three airconditioners, through a writ of replevin when defendants-appellants refused to extrajudicially surrender the same. This was done pursuant to paragraphs 5 and 7 of its Deed of
Conditional Sale when defendants-appellants failed to pay at least two (2) monthly
installments, so much so that as of January 6, 1977, the total amount they owed plaintiff-

Tajanlangit bought 2 tractors and a thresher from Southern Motors. They executed
a promissory note in payment thereof; it contained an acceleration clause. Tajanlang it failed
to pay any of the stipulated installments. Thus, Southern Motors sued him on the PN. The
sheriff levied upon the properties of Tajanlangit (same machineries) and sold them at a
public auction to satisfy the debt. Southern Motors now prayed for execution. Tajanlangit
sought to annul the writ of execution claiming that since Southern Motors repossessed
the machineries (mortgaged), he was therefore relieved from liability on the balance of the
purchase price.
ISSUE: W/N Tajanlangit is relieved from his obligation topay
HELD: NO. While it is true that the foreclosure on the chattel mortgage on the thing sold
bars further action for the recovery of the balance of the purchase price, this does not apply
in this case since Southern did not foreclose on the mortgage but instead sued based on
the PNs exclusively. That being the case, it is not limited to the proceeds of the sale on
execution of the mortgaged goods and may claim the balance from Tajanlangit.