Facts of the case:

The plaintiff, THE BACHRACH MOTOR CO., INC, a corporation duly organized according to
the laws of the Philippine, its principal place of business in the City of Manila, and the defendant,
Pablo A. Millan. On December 12, 1933, the defendant executed and delivered to the plaintiff his
promissory note for the sum of P939 payable in monthly installments. The said amount of P939
was the balance of the purchase price of one second hand Renault, a touring car, purchased by the
said defendant from the plaintiff on December 12, 1933, and registered in the office of the Register
of Deeds of the City of Manila.
The defendant has violated the terms of the said promissory note and chattel mortgage by failing
to pay the installments which fell due on December 22, 1933, and January 22 and February 22,
1934. After crediting the defendant with all the payments made by him on account of said
promissory note, there is still due and owing from said defendant in favor of the plaintiff the sum
of P928.50, together with interest thereon at the rate of 12 per cent per annum from March 17,
1934.
In the end, the defendant had offered to return the said second hand Renault touring car to the
plaintiff in payment of the full amount under the promissory note and the chattel mortgage, but the
said plaintiff refused to receive the same, and has filed this complaint for the full amount of the
purchase price.

Decision
Trial Court
The trial court, passed on to consider the provisions of article 1454-A of the Civil Code and held
that inasmuch as that article gives the vendor the alternative of either cancelling the sale or
foreclosing the mortgage and the vendor, appellant in this case, having elected not to foreclose the
mortgage, it can only make use of the other alternative, that is, cancel the sale and retain the total
amount of the installments already paid on account of the purchase price of the automobile bought
by the defendant from the plaintiff. Upon this theory the trial court dismissed this case.
The plaintiff-appellant's only assignment of error reads as follows:
The lower court erred in holding that under article 1454-A of the Civil Code the vendor, who has
sold a chattel on installments secured by mortgage of the chattel, has no other alternative but to
either foreclose the mortgage or rescind the sale; and in holding that under said article, said vendor
cannot demand the fulfillment of the obligation as contained in the promissory notes separately
signed by the purchase
The judgment of the trial court is reversed and let judgment be entered in favor of the plaintiff and
against the defendant for the sum of P928.50 with interest thereon at the rate of 12 per cent per
annum from March 17, 1934, until paid in full, plus the sum of P232.12 as attorneys' fees and
penalty, without costs in either instance.