Installment Sales Law or Recto Law
What is a Recto Law? It is an Installment Sales Law that provides remedies for the seller in the contract of sale of personal property by installments. It is embodied in Article 1484 of the Civil Code of the Philippines or the Republic Act No. 386 which amended Art. 1454 of the Civil Code of 1889. What is the coverage of the Recto Law? It covers: 1. Contracts of Sale of personal property by installments. 2. Contracts purporting to be leases of personal property with option to buy, when the lessor has deprived the lessee of the possession or enjoyment of the thing (PCI Leasing and Finance Inc. v. Giraffe-X Creative Imaging, Inc., G.R. No. 142618, July 12, 2007). What are the remedies for the seller under this law? As provided, the seller shall do: 1. Exact fulfillment of the obligation, should the vendee fail to pay. The seller shall file specific performance in court to exact payment from the vendee. As a gener...