G.R. No. L-46002; April 19, 1939
SALVACION RIOSA, petitioner, vs. STILIANOPULOS, INC., respondent.

FACTS

Respondent Stilianopulos, Inc. sold a Chevrolet car to petitioner Salvacion Riosa on installment. To secure payment, Riosa executed a chattel mortgage containing a clause waiving the 30-day period and 10-day notice required under Section 14 of the Chattel Mortgage Law ( Act No. 1508 ) before foreclosure sale, and agreeing that the sale could be held in the province where the mortgagee’s principal office is located. After Riosa defaulted, the sheriff, upon respondent’s instance, took possession of the car and sold it at public auction in Legaspi, Albay (where respondent’s office was), not in Tabaco, Albay (where Riosa resided). Notice was sent by registered mail. Respondent was the highest bidder. A deficiency balance remained, which respondent sought to collect.

ISSUE

Whether the stipulations in the chattel mortgage waiving the statutory periods and notice, and specifying the place of sale, are valid and binding on the mortgagor.

RULING

Yes. The petition for certiorari is denied. The waiver is valid. The requirements under Section 14 of the Chattel Mortgage Law are for the protection of the mortgagor’s personal interest, not public interest or third-party rights. Under Article 4 of the Civil Code, a person may waive any right conferred by law, unless the waiver is contrary to public interest, public order, or prejudicial to a third person. The Court found nothing in the waiver contrary to public interest or prejudicial to others. Since Riosa voluntarily agreed to the terms, including the venue of the sale, she is bound by them. The foreclosure sale was conducted in accordance with the valid contractual stipulations.

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