Section 3.
– Alternative Obligations ---------------------------------------------------------------------------
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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.
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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 impossible, unlawful or which could not
have been the object of the obligation. (1132)
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Art. 1201. The choice shall produce no effect except from the
time it has been communicated. (1133)
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Art. 1202. The debtor shall lose the right of choice when among
the prestations whereby he is alternatively bound, only one is
practicable. (1134)
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Art. 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. (n)
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Art. 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. (1135a)
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Art. 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) If one of the things is lost through a fortuitous
event, he shall perform the obligation by delivering that which
the creditor should choose from among the remainder, or that
which remains if only one subsists;
(2) If the loss of one of the things occurs through the
fault of the debtor, the creditor may claim any of those
subsisting, or the price of that which, through the fault of the
former, has disappeared, with a right to damages;
(3) If all the things are lost through the fault of the
debtor, the choice by the creditor shall fall upon the price of any
one of them, also with indemnity for damages.
The same rules shall be applied to obligations to do or
not to do in case one, some or all of the prestations should
become impossible. (1136a)
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Art. 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 account of his
delay, negligence or fraud. (n)
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Article 1199:
Kinds of Obligations according to object or prestations:
1. Simple Obligation – there is only one prestations.
Ex.: D promised to deliver C a 2010 model BMW car.
2. Compound Obligation – there are two or more prestations.
Two kinds of compound obligation
(A) Conjunctive Obligation – there are several
prestations, and all of them are due.
Ex.: D promised to deliver to C a 2010 model
BMW car and a dump truck.
(B) Distributive Obligation – there are several
prestations, but only one or some of the prestations are
due.
Two kinds of distributive obligation
I. Alternative - there are several prestations
due to the creditor, but the performance by the
debtor of any one of the prestations is sufficient
compliance with the obligation.
Ex.: D promised to deliver C either a
BMW car, a Jaguar or a Mercedez Benz
II. Facultative - There is only one prestation
due to the creditor, but the debtor may perform
another prestation to substitute the original
prestation.
Ex.: D promised to deliver to C a BMW,
but D may deliver a Jaguar as a substitute.
Article 1200:
 OBLIGATIONS BECAME SIMPLE – the rule
stated in this article is a simple logical consequence of
the second paragraph of Art 1200 (election by others –
alternative obligations between parties, when one
party perform the prestation with intention to
discharge the obligation, then he is released and the
choice is entrusted by the party to a third person).
 WHERE CREDITORS MAY CHOOSE – article
1202 is only applied when the debtor has the right to
choose. Unless otherwise art 1205 will be applied
when prestation remains practicable either by
fortuitous event or due to fault of the debtor
By default, the debtor has the right of choice
in selecting which obligation to perform unless
 otherwise stipulated. The debtor cannot select Article 1204:
prestations that are: (a) impossible; (b) unlawful; or (c) Effect of loss of objects of obligation
which could not have been the object of the obligation. > If some of the objects of the obligations have been lost or
If the debtor cannot make a choice according impossible even through the fault of the debtor, he/she has the
to the terms of the obligation due to the acts of the right of choice and the obligation can still be performed.
creditor, the debtor has the right to rescind the contract > If all of the objects have been lost or have become impossible
with damages. through the debtor’s fault, the creditor shall have the right to
indemnity for damages.
Article 1201: > If all thing, except one, were lost, the debtor must comply by
The notice of selection or choice of prestation may be performing which remain.
communicated in writing, verbally, impliedly or by any other > If the cause of the loss is fortuitous events, the obligation is
unequivocal means. extinguished.
Communication of notice that choice has been made: * The indemnity shall be fixed taking as a basis the
1. Effect of notice  until the choice is made and value of the last thing which disappeared, or that of the service
communication, the obligation remains alternative. which last became impossible. Damages other than the value of
*Once the notice of election (choice) has been given the last thing or service may also be awarded.
to the creditor, the obligation becomes simple and cannot Ex.: Marcelino obliged himself to deliver to Melencio either his only
piano or only guitar. Through the fault of Marcelino the piano was lost,
be changed by either party without the consent of the
and subsequently, the guitar also disappeared. In such case, Marcelino
other. could recover damages from Melencio. The basis of recovery should be
2. Proof and form of notice  it may be made orally, the amount of the last thing lost which was the piano.
writing expressly or impliedly.
Article 1205:
Article 1202: Selection by Creditor
Effect: The obligation is converted (from an alternative) to  Right of the creditor takes effect from the moment it is
simple one. communicated with the debtor.
 Expressly or implied
*When the debtor loses the right of choice the obligation  Tacit Selection when creditor accepts a prestation offered by
becomes simple. This article applies only when the debtor has debtor.
the right to choose.
Example: X is obliged to give either object A or object B or Effects of Creditor’s Delay
Object C. if objects A and B are lost by a fortuitous event before  If creditor failed with his right to choose, there is no delay
the choice can be made, X can only deliver object C, because the on the part of debtor even there is definite period fixed for the
obligation has become a simple one.
performance of obligation.
 Default or delay on the debtor, arises only if when obligation
Article 1203:
become simple one by the exercise of creditor of his right to
* Rescission creates the obligation to return the things which
choose.
where the object together with their fruits, and the price with its
interest.
Lost
* On this article the debtor may rescind the contract with Right of
Some of the All thing, Due to fortuitous
damages if he could not make any choice in accordance with choice All objects
object/s except one event
the terms of the obligation, due to the creditor’s fault. DEBTOR Subject to
Ex.: Cassie borrowed from Marga P50,000. It was agreed that The debtor has breach of
instead of paying P50,000 cash, Cassie could deliver her car, or the right of contract and Debtor must
choice and the therefore the comply by The obligation is
her antique sala set, or her Hermes bag. However, due to the
obligation can creditor has performing extinguished
fault of Marga, Cassie’s car was destroyed in a car crash.
still be the right to which remain
performed indemnify for
Remedies: damages
> Cassie can cancel (rescind) the contract if she wants. She CREDITOR If one of the
must return the amount borrowed with interest. Marga must, in Creditor may thing: debtor
turn also pay Cassie for the value of the car plus damages. claim any of the Creditor can shall still perform
> Cassie may still choose the sala set or her Hermes bag to remaining thing demand any of the obligation by
with damages or the price of the performing which
satisfy the obligation with the right to recover the value of the
the price of thing lost plus remain
car plus damages.
thing lost plus damages If all the things:
> If Cassie chooses her destroyed car, her obligation is damages the obligation is
extinguished and Marga is not liable for damages. extinguished
Article 1206:
 Facultative Obligation – is one where only one
prestation has been agreed upon but the obligor may
render another in substitution.

Effect of loss:

(1) Before substitution

a) If the principal things is lost through a fortuitous
event, the obligation is extinguished.
b) If principal thing is lost through the fault of the
debtor, the latter is liable for damages.
c) If the thing intended as a substitute is lost with or
without the fault of the debtor, the latter is not liable
for damages.

(2) After substitution

a) if the principal thing is lost, the debtor is not liable
because it is no longer due.
b) If the substitute is lost, the debtor is liable for
damages of due to his fault.

Alternative and Facultative Obligations Distinguished

ALTERNATIVE FACULTATIVE
Several prestations Only one prestation
As to number of are due but is due but
prestations compliance with substitution may
one is sufficient take place
The choice may be Right of choice
As to right of
given to the creditor belongs only to the
choice
or a third person debtor
The loss of one or
more alternative
Loss of the thing
As to loss through through a fortuitous
due extinguished
fortuitous event event does not
the obligation
extinguish the
obligation
> Loss of the
> Loss of the thing
alternatives through
due to his fault
fault of debtor does
makes him liable.
not render him
> Where the choice
liable.
belongs to the
As to loss through > Where the choice
creditor, the loss of
fault of the debtor belongs to the
the substitute before
creditor, the loss of
the substitution
one alternative
through the fault of
through fault of
debtor does not
debtor makes him
render him liable
liable
> The nullity of the > The nullity of the
prestation does not prestation does not
invalidate the others invalidates the
As to nullity of
>The debtor or obligation
prestation
creditor shall > The debtor is not
choose from among bound to choose
the remainder substitute.

Kayesha 

Fin.