ALTERNATIVE OBLIGATIONS

AND FACULTATIVE
OBLIGATIONS
ALTERNATIVE OBLIGATION

ALTERNATIVE OBLIGATION
– an obligation where the
debtor is required to fulfill
ONLY ONE of the several
prestations to extinguish the
obligation.
ALTERNATIVE OBLIGATIONS

ALTERNATIVE –
bound by different
prestations but
only one is due.
RIGHT OF CHOICE IN ALTERNATIVE
OBLIGATIONS
As a general rule the right
of choice belongs to debtor,
unless:
1. when it is expressly
granted to the creditor
2. when it is expressly
granted to a third person
LIMITATION AS TO THE RIGHT
OF CHOICE
1. impossible prestations
2. unlawful prestations
3. those which could not have
been the object of the obligation
4. only one prestation practicable
(Art.1202) (De Leon, 2003)
 WHEN CHOICE SHALL
PRODUCE EFFECT
Art. 1201: Choice shall produce no effe
ct except from the time it has been
communicated.
The effect of the notice is to limit the
obligation of the object or prestation
selected. Notice of selection or choice
can be oral, in writing, tacit or any
other equivocal means provided it is
sufficient to make the other party know
that the selection has been made.
 EXAMPLE
X owe Y 10K. They agreed that X
can give 10K cash, a samsung
phone or X to repair the car of Y.
The delivery of any one of them,
10K cash, a samsung phone or X
to repair the car of Y is sufficient
compliance of the obligation.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE DEBTOR

1. If through a fortuitous event all were

lost, debtor cannot be held liable for
damages.
2. If 1 or more but not all of the things are
lost or one or some but not all of the
prestations cannot be performed due to
fortuitous event or fault of the debtor,
creditor cannot hold the debtor liable
for damages because the debtor can still
comply with his obligation
 EXAMPLE
EFFECT OF LOSS OF SOME OBJECTS

X is bound to deliver to Y, a samsung

phone, Ipad or sony phone.
If the samsung phone is lost, X can
still select from Ipad or sony phone.
If the Ipad was lost, x can still
comply with his obligation as he can
still deliver the sony phone.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE DEBTOR

3. If all things, except one, were lost,

the debtor must comply by performing
that which remain .

4. If all were lost by fault of the debtor

the later is liable for the value of the
last thing or service which became
impossible.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE CREDITOR

1. If 1 of the things is lost

through a fortuitous event, the
debtor shall perform the
obligation by delivering that
which the creditor should
choose from among the
remainder or that which
remains if only 1 subsists.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE CREDITOR

2. If the loss of 1 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.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE CREDITOR

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 1 of them,
also with indemnity for
damages.
 EXAMPLE
EFFECT OF LOSS OF ALL OBJECTS
X is bound to deliver to deliver to Y,
a samsung phone, Ipad or sony
phone.
The samsung phone from Ipad or
sony phone was lost through the
fault of X.
Y can choose the price of samsung
phone, Ipad or sony phone with
indemnity for damages.
EFFECT OF LOSS OF OBJECT IF THE RIGHT
OF CHOICE BELONGS TO THE DEBTOR

FORTUITOUS EVENT DEBTOR’S FAULT

1. All Lost
1. All Lost Creditor shall have
Debtor is the right to indemnify
for damages based
released on the value of the
last thing which
from the disappeared or
obligation. service which
becomes impossible.
 EFFECT OF LOSS OF OBJECT IF THE RIGHT
OF CHOICE BELONGS TO THE DEBTOR

FORTUITOUS EVENT DEBTOR’S FAULT

2. Some 2. Some
Debtor to deliver Debtor to deliver that
which the creditor shall
that which he shall
choose from among
choose from among the remainder without
the remainder. damages
3. One remains 3. One remains
Debtor to deliver Debtor to deliver that
that which remains. which remains.
 SUMMARY OF RULES, OBLIGATIONS, &
RIGHTS OF DEBTOR IN ALTERNATIVE
OBLIGATION
1. If one of prestations lost through
fortuitous event, shall still be perform by
choosing (creditor) from the remainder.
2. If one of prestations lost
through debtor’s fault, creditor may claim
any of remainders w/ damages.
3. If all prestations lost through debtor’s
fault, creditor choose price w/ damages.
FACULTATIVE OBLIGATION
FACULTATIVE OBLIGATION
FACULTATIVE OBLIGATION –
an obligation where the debtor
is bound to perform ONLY ONE
prestation, with a reserved
right to choose another
prestation as SUBSTITUTE for
the principal.
FACULTATIVE OBLIGATION

only one prestation

has been agreed
upon but another
may be given in
substitution.
FACULTATIVE OBLIGATION
ALTERNATIVE FACULTATIVE
a) Various things are a) Only one thing is due
due but the giving but a substitute may be
principally given to render
of one is sufficient payment/fulfillment easy
b) If one of prestations b) If principal obligations
is illegal, others may be is void and there is no
valid but obligation necessity of giving the
remains. substitute; nullity of P
carries with it nullity of S
FACULTATIVE OBLIGATION
ALTERNATIVE FACULTATIVE

c) If it is c) If it is impossible
to give the principal,
impossible to the substitute does
give all except not have to be
given; if it is
one, the last impossible to give
one must still the substitute, the
be given. principal must still
be given.
FACULTATIVE OBLIGATION
ALTERNATIVE FACULTATIVE

d) Right to d) The right

choose of choice is
may be given
either given only
to debtor or to the
creditor debtor
RULES ON LOSS/DETERIORATION OF THE
THING INTENDED AS SUBSTITUTE IN
FACULTATIVE OBLIGATION
1. If there is a loss/deterioration of
thing intended as substitute,
debtor is not liable if it is not his
fault.
But if substitution is already made,
debtor is liable for loss of
substitute when in delay,
negligence or fraud.
 EXAMPLE
LOSS/DETERIORATION OF THE THING INTENDED AS
SUBSTITUTE IN FACULTATIVE OBLIGATION

1. Before substitution-
X is obliged to deliver an Ipad or a sony mobile
phone to Y.
If X lost the Ipad through fortuitous event, the
obligation is extinguished.
If the Ipad was lost through the fault of X, X is
liable for damages.
If the sony mobile phone was lost with or
without the fault of X. X is still liable to deliver
the Ipad. The loss of the sony mobile phone
intended as a substitute will not make X liable
because the substitution has not been made.
 EXAMPLE
LOSS/DETERIORATION OF THE THING INTENDED AS
SUBSTITUTE IN FACULTATIVE OBLIGATION

2. After substitution-
X is obliged to deliver an Ipad or a sony
mobile phone to Y.
X communicated to Y that he will be
delivering a sony mobile phone on
October 30, 2019.
If the Ipad was lost with or without the
fault of X, he is not liable because he
already substituted it with the sony
mobile phone.
 EXAMPLE
LOSS/DETERIORATION OF THE THING INTENDED AS
SUBSTITUTE IN FACULTATIVE OBLIGATION

if the sony mobile phone

was lost through fortuitous
event, the obligation is
extinguished.
If the sony mobile phone
was lost through the fault of
X, X is liable for damages.
 REFERENCE
introvertandsmart.blogsport.com
academia.edu.com
RA 386 Civil code of the Philippines
The law on Obligations and Contracts
(De Leon)