Title I Chapter 3

DIFFERENT KINDS OF
OBLIGATIONS
Section 3
Alternative and Facultative 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. (1131)
 Kinds of obligation according to object.

1. Simple obligation - one where there is only one prestation.

Examples:
D obliged himself to deliver to C a cellphone.
D promised to repair C’s computer.

2. Compound obligation - one where there are two or more

prestations.
a. Conjunctive obligation - one where there are several
prestations and all of them are due.
b. Distributive obligation - one where two or more of
the prestations is due.
Distributive Obligation.
1. Alternative obligation - several prestations are due
but the performance of one is sufficient.

Example: D obliged himself to give C a particular horse

or a specific cellphone, or to teach C how to drive. Here,
it is enough that D fully performs one prestation.

2. Facultative obligation - only one prestation is due,

but there is a substitute another.

Example: D obliged himself to give C a particular horse,

or as substitute to give a specific cellphone or to teach C
how to drive.
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)
General Rule: The right to choose which
prestation to perform belongs to the debtor.

Examples:
O insured his house with Bayad Agad Insurance Company.
It is agreed that if the house is destroyed or damaged, O may
either (1) pay the damage or loss, or (2) restore or
rebuild the house.
Since nothing is said in the contract as to who has the right of
choice, it belongs to debtor Bayad Agad.
Note: The debtor’s right of choice is
not absolute.
Meaning to say:
(1) The debtor cannot choose those prestations which are:
(a) impossible, (b) unlawful, or (c) which could not have
been the object of the obligation. These prestations are void.
However, their presence do not invalidate the obligation if it
includes other undertakings otherwise free from such defects.
Example: D obliged himself to give C a particular horse or a
stolen cellphone or to create a website for C. Here, the
obligation is valid although one prestation (to give a stolen
cellphone is unlawful). But D can only choose between giving a
horse and creating a website.
(2) The debtor has no more right of choice when, among the
prestations whereby he is alternatively bound, only one is
practicable. (Art. 1202.) In this case, there is not
only a limitation but a loss of the right of choice belonging
to the debtor. The obligation becomes simple.

Example: D obliged himself to give C a particular horse or a

stolen cellphone or to cyber bully C’s former girlfriend. Here, the
obligation becomes a simple obligation – to give a particular
horse. D cannot choose to give C a stolen cellphone or to cyber
bully C’s former girlfriend because both are unlawful.
(3) The debtor cannot choose those prestations which
are:
• impossible;

• unlawful; or

• which could not have been the object of the

obligation.
Examples:

Impossible - D promised to give C P5,000, or a specific

cellphone, or the galaxy. Here, D cannot choose to give
the galaxy because it is physically impossible.

Unlawful - D obliged himself to deliver to C a marijuana

brick, or a car, or a cellphone, or to help C cheat in the
exam. D can choose only to deliver a car or cellphone.
The debtor cannot choose that which could not have
been the object of the obligation.

Example:

D borrowed from C P10,000. It was agreed that D would give

C his cellphone, or P10,000, or his rubber shoes.

Suppose D has 2 cellphones – an old Nokia worth P1,000

and a new Samsung worth P10,000. D cannot choose the old
Nokia because it could not have been the object of the
obligation.
Article 1201. The choice shall produce no effect except
from the time it has been communicated. (1133)
Communication of notice that choice has
been made.

1. Effect of notice - until the choice is made and

communicated, the obligation remains alternative.
2. Proof and form of notice - The burden of proving that
such communication has been made is upon him who
made the choice.
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. (n)
When debtor may rescind contract.

If through the creditor’s fault, the debtor cannot make a

choice according to the terms of the obligation, the debtor
is given the right to rescind the contract and recover
damages.
Example:
D borrowed from C P10,000. It was agreed
that instead of P10,000, D could deliver to C a specific
cellphone, computer or tablet.

If through C’s fault the cellphone is destroyed,

then D can rescind the contract if he wants. In case of
rescission, D must return the P10,000 plus interest. C,
in turn, must pay D the value of the cellphone plus
damages.

However, instead of rescinding the contract, D

may choose the computer or tablet with a right to
recover the value of the cellphone with damages. If D
chooses the cellphone, then his obligation to C is
extinguished. On the other hand, C is not liable for
damages.
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. (1135a)
Effects of loss of objects of obligation. (The
right of choice belongs to the debtor.)

1. Some of the objects - If some of the objects of the

obligation have been lost or have become impossible
even through the debtor’s fault, then the debtor is not
liable since he has the right of choice and the obligation
can still be performed.
2. All of the objects - If all of them have been lost or
have become impossible through the debtor’s fault,
the creditor shall have the right to indemnity for damages
since the obligation can no longer be complied with. If the
cause of the loss is fortuitous event, then the obligation is
extinguished.
Basis of indemnity. (How much
damages?)
The value of the last thing which disappeared
or the value of the service that last became
impossible.
In case of disagreement, the creditor must
prove the value, or which thing last
disappeared or which service last became
impossible.
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) 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)
Rules in case of loss before creditor made a
choice. (Here, the choice belongs to the creditor.)

(1) When a thing is lost through a fortuitous event

Example:
S obliged himself to deliver to B a particular horse,
cellphone, computer or tablet. If the horse is lost
through a fortuitous event, B can choose from
among the remainder. If three of the items are lost, then B
must give that which remains.
(2) When a thing is lost through debtor’s fault.

Example:

If the loss of the horse occurs through the fault of S,

B may claim item either the cellphone, computer or tablet
with a right to damages, or the price of lost horse also with
a right to damages.
(3) When all the things are lost through debtor’s fault

Example:
If all the items are lost through the fault of S, then B
can demand the payment of the price of any one) of
them (not necessarily the last object that was lost with a
right to indemnity for damages.
(4) When all the things are lost through a fortuitous
event
Example:
The obligation of S shall be extinguished if all the
items which are alternatively the object of the
obligation are lost through a fortuitous event. In this
case, Article 1174 shall apply.
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 account of his delay, negligence or fraud.
(n)
Meaning of facultative obligation.

Article 1206 deals with facultative obligation.

A facultative obligation is one where only one

prestation has been agreed upon but the obligor may
render another in substitution.
EXAMPLE:

“I will give you my cellphone but I may give my tablet as

a substitute.”

In this obligation, only the cellphone is due. Hence, its

loss through my fault will make me liable.
Effects of Loss.
(1) Before substitution - If the principal thing is lost
through a fortuitous event, the obligation is extinguished.
(2) After substitution - If the principal thing is lost, the
debtor is not liable whatever may be the cause of the
loss, because it is no longer due.
Alternative and Facultative Obligations Distinguished