MCQOPTIONS
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| 1. |
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? |
| A. | A can file an action for the foreclosure of the mortgage and recover the unpaid balance because of the contract. |
| B. | A can foreclose the mortgage and recover the unpaid balance because the Chattel Mortgage Law does not prohibit recovery. |
| C. | A can foreclose the mortgage but cannot recover the unpaid balance because it is absolutely prohibited by law. |
| D. | A can foreclose the mortgage and can recover the unpaid balance from C since B & C are solidarily liable. |
| Answer» D. A can foreclose the mortgage and can recover the unpaid balance from C since B & C are solidarily liable. | |