MODULE V

ALTERNATIVE AND FACULATATIVE OBLIGATIONS

(Articles 1199 – 1206)

KINDS OF OBLIGATION ACCORDING TO THE NUMBER OF PRESTATIONS

1. Simple- one where there is only prestation.

2. Compound- one where there are several prestations.

ALTERNATIVE OBLIGATION, CONCEPT

An alternative obligation is one where several prestations are due but the
complete performance of one of them is sufficient to extinguish the obligation
(Art. 1199).

Example: D is obliged to give a specific ring, a specific watch or a specific

bracelet to C. The delivery of any of the three articles will extinguish the
obligation.

RIGHT TO CHOOSE PRESTATION

The right of choice belong to the debtor, unless it has been expressly
given to the creditor (Art.1199).

LIMITATIONS ON DEBTOR’S RIGHT TO CHOOSE

1. The debtor must completely perform the prestation chosen. He cannot

compel the creditor to receive part of one prestation and part of another
prestation (Art.1199).

Example: D borrowed from C P10,000. It was agreed that D could

comply with his obligation by giving C P10,000, or a color television set,
or by painting the house of C.
The delivery of the P10,000, or the color television set, or the
painting of the house of C, is sufficient to comply with the obligation.
Performance must be complete. C cannot be compelled to accept, for
instance, P5,000 and half of the television, thereby establishing a co-
ownership between them or P5,000 and the painting of a part of his
house.

2. He cannot choose those prestations which are impossible, unlawful or

which could not have been the object of the obligation (Art.1199).

Examples:

Impossible – S promised to deliver to B 10 sacks of rice, or a watch, or

soil from Jupiter. S cannot choose to deliver soil from Jupiter as it is
physically impossible.

Unlawful – S obliged himself to deliver to B a kilo of a dangerous drug, or

a parcel of land, or a 2-carat diamond ring, or to kill C. S can choose
only the parcel of land or the 2-carat diamond ring.

Could not have been the object of prestation – D borrowed from C

P30,000. It was agreed that D would give his horse, or P30,000, or his
German piano. Now D has two horses – a race horse worth P30,000 and
a horse for calesa that cannot be sold for more than P5,000. D cannot
choose the horse for calesa as it could not have been the object of
prestation.

WHEN THE OBLIGATION CEASES TO BE ALTERNATIVE AND BECOMES A

SIMPLE OBLIGATION

1. When the debtor has communicated his choice to the creditor (Art.
1201).
2. When among the prestations whereby the debtor is alternatively bound,
only one is practicable (Art. 1202).
3. When the creditor has communicated his choice to the debtor, if the
creditor has been expressly given the right of choice (Art. 1205).
RULES IN CASE OF LOSS OF THINGS WHICH ARE ALTERNATIVELY THE
OBJECT OF THE OBLIGATION BEFORE THE CHOICE IS COMMUNICATED

1. When the right of choice is with the debtor (Art. 1204)

a. If only one or some are lost through a fortuitous event or through the
debtor’s fault, the debtor may deliver any of the remainder, or that
which remains if only one subsists.
b. If all are lost through a fortuitous event, the obligation is extinguished
(based on the rule that no person shall be responsible for fortuitous
event).
c. If all are lost through the debtor’s fault, the debtor shall pay the value
of the last thing that was lost plus damages.
d. If all except one are lost through the debtor’s fault, and the remaining
item is subsequently lost through a fortuitous event, then the debtor’s
obligation is extinguished.
e. If all except one are lost through the fortuitous event, and the
remaining item is subsequently lost through the debtor’s fault, the
debtors shall pay damages.

Examples: D is to give C a specific ring, a specific bracelet, or a specific

wristwatch. The obligation is silent as to who will choose the item to be
delivered. Therefore, the right of choice belongs to D.

a. If the ring is lost through a fortuitous event, D may deliver the

bracelet or the wristwatch. The same rule applies if the ring is lost
through the fault of D. In the case of the latter, D shall have no
liability for damages because he can still performed his obligation by
choosing to deliver the bracelet or the wristwatch.
b. If the ring and the bracelet are lost through a fortuitous event, or
through D’s fault, the obligation is converted into a simple obligation
to deliver the wristwatch. There is no liability for damages for the part
of D even if the loss is due to his fault because he can still perform his
obligation. It was as if D chose to deliver the wristwatch.
c. If all things are lost to a fortuitous event, D’s obligation is
extinguished.
d. If the ring and the bracelet are lost through a fortuitous event, the
obligation becomes a simple obligation to deliver the wristwatch. If the
wristwatch is thereafter lost due to the fault of D, D shall pay
damages.
e. If the ring, the bracelet, and the wristwatch are lost one after the
other due to D’s fault, D shall pay the value of the wristwatch, the last
item that was lost plus damages.
f. If the ring and the bracelet are lost through D’s fault, the obligation
becomes a simple obligation to deliver the wristwatch. If the
wristwatch is thereafter lost through a fortuitous event, D’s obligation
is extinguished.

2. When right of choice is expressly granted to the creditor (Art.1209)

a. If only one or some are lost through a fortuitous event, the debtor
shall deliver that which the creditor should choose among the
remainder, or that which remains if only one subsists.
b. If all are lost through a fortuitous event, the obligation shall be
extinguished.
c. If only one or some are lost through the debtor’s fault, the creditor
may claim any of those subsisting or the price of any of those which
were lost through the debtor’s fault plus damages.
d. If all are lost through the debtor’s fault, the creditor may claim the
price of any of them plus damages.

Examples: D is to give C a specific ring, a specific bracelet or a specific

wristwatch. The parties agreed that C shall have the right of choice.

a. If the ring is lost through a fortuitous event, D shall deliver either the
bracelet or the wristwatch at the choice of C.
b. If all are lost through a fortuitous event, D’s obligation is
extinguished.
c. If the ring and the bracelet are lost through a fortuitous event, D shall
deliver the wristwatch which is the remaining item. The obligation
becomes a simple obligation to deliver the wristwatch. If the
wristwatch is thereafter lost due to D’s fault, D shall pay damages.
d. If the ring and the bracelet are lost due to D’s fault, the obligation
does not become a simple obligation to deliver the wristwatch. C can
still choose from the payment of the price of the ring or the bracelet
with damages, or the delivery of the wristwatch.
e. If all are lost due to the fault of D, C may claim the price of any of
them plus damages.
FACULTATIVE OBLIGATION, CONCEPT

An obligation where only one prestation is due but the debtor may render
another in substitution.

Example: D is obliged to give a specific ring to C with the agreement that

D may deliver a specific watch as a substitute.

RULES IN CASE OF LOSS OF PRINCIPAL THING AND SUBSTITUTE

1. Before substitution (i.e., before the debtor has informed the creditor of
the substitution)
a. Principal thing
1.) If lost due to fortuitous event, the obligation is extinguished.
2.) If lost due to the debtor’s fault, debtor shall pay damages.
b. Substitute
The loss of the substitute whether through a fortuitous event or
through the debtor’s fault imposes no additional obligation on the
debtor because it is not due. The debtor has still to deliver the
principal thing. However, the obligation ceases to be facultative
obligation and becomes a simple obligation to deliver the principal
thing.

Examples: S will give B item one or if S wants, item two. If:

Item one is lost through a fortuitous event – the obligation of s is

extinguished.

Item one is lost through the fault of S – S is liable for damages.

Item two is lost with or without the fault of S – S is still liable to

deliver item one. He is not liable for damages for the loss of item two
as it is not due.

2. After substitution
a. Principal thing
The loss of the principal thing whether through a fortuitous event
or through the debtor’s fault imposes no additional obligation on the
debtor because the thing due is already the substitute. After the
substitution has been communicated, the thing due is the substitute.
The obligation also ceases to be a facultative obligation and becomes a
simple obligation.
b. Substitute
1.) If lost through a fortuitous event, the obligation is extinguished.
2.) If lost through the debtor’s fault, the debtor shall pay damages.

Examples: Based on the preceding example, if:

Item one is lost with or without the fault of S – S is not liable for its
loss since his obligation is to deliver item two.

Item two is lost trough a fortuitous event – obligation of S is

extinguished.

Item two is lost through the fault of S – S is liable for damages.

ALTERNATIVE AND FACULTATIVE OBLIGATION DISTINGUISHED

Alternative obligation Facultative obligation

1. Several prestations are due, but 1. Only one prestation, the
the performance of one is principal obligation, is due
sufficient to extinguish the debt.
1 If there are void prestations, the 2. If the principal obligation is
other may still be valid, hence, void, the debtor is not required
the obligation remains. to give the substitute.
2 The right of choice is with the 3. The right of choice belongs to
debtor, unless expressly given to the debtor only.
the creditor.
3 If all prestations are impossible 4. If the principal obligation is
except one, that which is impossible, the debtor is not
possible must still be given. required to give the substitute.