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Bayles, Buencochillo, Doronila, Escala, Gonzales, Manguilimotan BABA 1-C

SECTION 3: ALTERNATIVE OBLIGATIONS

Article 1199. A person alternatively bound by different prestations shall completely perform one
of them.
The creditor cannot be compelled to receive part of one and part of the other undertaking.

Kinds of obligation according to object:


I. Simple Obligation – has only one prestation
II. Compound Obligation – has two or more prestations
1. Conjunctive – several prestations and all are due
2. Distributive – two or more of the prestations are due
a. Alternative
b. Facultative

Alternative Obligation – performing only one of the several prestations is already sufficient

Article 1200. The right of choice belongs to the debtor, unless it has been expressly granted to
the creditor.
The debtor shall have no right to choose those prestations which are either impossible,
unlawful or which could not have been the object of the obligation.

Right of choice of debtor is subject to limitations:


1. Cannot choose: impossible, unlawful, not the object of the obligation
2. No more right of choice when only one prestation is practicable
3. Cannot choose part of one and part of another prestation

Article 1201. The choice shall produce no effect except from the time it has been communicated.

1.Effect of notice
a. Alternative obligation becomes simple
b. Choice is irrevocable without consent of both parties
2. Proof and form of notice - the one who made the choice has the burden of proving that notice
has been made. Notice can be oral or written (expressed or implied)

Article 1202. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable to be performed.

Article 1203. If through the creditor’s acts, the debtor cannot make a choice according to the
terms of the obligation, the latter may rescind the contract with damages.

Rescission – return things which were the object of the contract with the fruits, and price with
interest.
Article 1204. The creditor shall have a right to indemnity for damages when through the fault of
the debtor, all the things which are alternatively the object of the obligation have been lost, or the
compliance of the obligation has become impossible.
The indemnity shall be fixed taking as a basis the value of the last thing which
disappeared, or that of the service which last became impossible.
Damages other than the value of the last thing or service may also be awarded.

Effect of loss of objects:


1. Some of the objects – debtor is not liable since other prestations can still be performed
2. All of the objects – debtor is liable if all are lost or are impossible to do through his fault
only.

Basis of indemnity - payment for indemnity only arises if the last thing/service that has been lost
or became impossible is due to the debtor’s fault.

Article 1205. When the choice has been expressly given to the creditor, the obligation shall
cease to be alternative from the day when the selection has been communicated to the debtor.
Until then, the responsibility of the debtor shall be governed by the following rules:
1. When a thing is lost through fortuitous event – creditor chooses among the remainder.
2. When the thing is lost through debtor’s fault – creditor can claim one of the remaining
items or price of lost item, with right to damages
3. When all things are lost through debtor’s fault – creditor can demand payment of price in
one of the items with right to damages.
The same rules are applied in personal obligations.

Article 1206. When only one prestation has been agreed upon, but the obligor may render
another in substitution, the obligation is called facultative.
The loss or deterioration of the thing intended as a substitute, through the negligence of
the obligor, does not render him liable. But once the substitution has been made, the obligor is
liable for the loss of the substitute on the account of his delay, negligence or fraud.

Effect of loss:
1. Before substitution
a. Loss of substitute– debtor is not liable
b. Loss of principal thing not through his fault - debtor is not liable
c. Loss of principal thing through his fault – debtor is liable

2. After substitution
a. Loss of principal thing – debtor is not liable
b. Loss of substitute not through his fault – debtor is not liable
c. Loss of substitute through his fault – debtor is liable
ALTERNATIVE FACULTATIVE
1. Number of prestations Several; performing only one Only one but can be
is sufficient substituted

2. Right of choice Debtor, unless granted to Debtor only


creditor or third person

3. Loss through a fortuitous Loss of alternatives – does not Loss of thing due extinguishes
event extinguish obligation unless obligation
all is lost

4. Loss through fault of debtor a. Right of choice – a. Right of choice –


debtor debtor
Loss of alternatives Loss of thing due
does not render him makes him liable
liable
b. Right of choice –
b. Right of choice – creditor
creditor Loss of substitute
Loss of alternatives before substitution
makes debtor liable does not render him
liable