Lease with Option to Purchase

NOTE: Article 1485 adds as a condition when the lessor has deprived the lessee of the
possession or enjoyment of the thing.

The remedies in Art. 1484 apply

Deprived the lessee

US Commercial Co. v. Halili: lease of personal property with option to purchase. Upon default, the
lessor ordered the return of the vehicles, to which the lessee voluntarily returned. Action on unpaid
rentals subsequently was instituted.
HELD: Being leases of personal property with option to purchase as contemplated in the above article,
the contracts in question are subject to the provision that when the lessor in such case "has chosen to
deprive the lessee of the enjoyment of such personal property," "he shall have no further action" against
the lessee "for the recovery of any unpaid balance" owing by the latter, "any agreement to the contrary
being null and void."
Villanueva 368: in the case of purported contracts of lease with option to buy, the taking back of
possession or enjoyment of the leased movable by the seller-lessor would amount to both a foreclosure
that BARS all other actions of whatever nature.
Same: and NOT rescission that would authorize the seller the right to recover damages.