Q. 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? (Solved)

1. A can file an action for the foreclosure of the mortgage and recover the unpaid balance because of the contract.

2. A can foreclose the mortgage and recover the unpaid balance because the Chattel Mortgage Law does not prohibit recovery.

3. A can foreclose the mortgage but cannot recover the unpaid balance because it is absolutely prohibited by law.

4. A can foreclose the mortgage and can recover the unpaid balance from C since B & C are solidarily liable.