Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

CHAPTER 3, SECTION 3 ALTERNATIVE

OBLIGATIONS
(Articles 1193-1198)

1. There are two (2) kinds of obligations according to object

or prestation :

(A) SIMPLE obligation There is only one (1) prestation.

D promised to deliver to C a 2010 model BMW car .

only 1 prestation

(B) COMPOUND obligation There are two (2) or more

prestations. Compound obligations are of two (2) kinds :

(B.1) CONJUNCTIVE obligation There are several

prestations, and all of them are due.

D promised to deliver to C a 2010 model BMW car and a

dump truck .
2 prestations

(B.2) DISTRIBUTIVE obligation There are several

prestations, but only one or some of the prestations are due.
The two (2) kinds of distributive obligations are :

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.
(Article 1199)

D promised to deliver to C either a BMW car, a Jaguar or a

Mercedez Benz.
3 alternative prestations to choose from

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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

FACULTATIVE There is only one prestation due to the

creditor, but the debtor may perform another prestation to
substitute the original prestation. (Article 1206, par. 1)

D promised to deliver to C a BMW, but D may deliver a

Jaguar as a substitute .
original prestation substitute
prestation
2. To whom is the right of choice given in an alternative
obligation? In other words, since there are several prestations
due, who will choose which prestation is to be performed by
the debtor?

As a general rule, the right to choose the alternative

belongs to the DEBTOR. (Article 1200, par. 1)

EXAMPLE A: On March 15, 2010, Gerald

promised Kim that he will deliver to
her on December 15, 2010 either a
Siamese cat, a bulldog, or a tarsier.

Since the obligation does not say to whom the right of

choice is given, the debtor Gerald has the right of choice.
Gerald can decide which among the alternative prestations he
will deliver to Kim on December 15, 2010. If Gerald chooses
and delivers to Kim a bulldog, the obligation will now be
extinguished. Kim cannot insist that Gerald deliver the
Siamese cat because the right of choice has not been given to
the creditor.

What are the limitations on this preferential right of the

debtor to choose the alternative prestation in an
alternative obligation?

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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

(A) The creditor may exercise the right to choose the

alternative prestation if the right is given to the creditor by
express agreement of the parties. (Articles 1200, par. 1 &
1205)

In EXAMPLE A above, Gerald and Kim may agree that

Kim will be the one to choose the alternative prestation. If Kim
informs Gerald that she wants the Siamese cat, Gerald must
deliver the Siamese cat on December 15, 2010. If Gerald
delivers the bulldog, the obligation will not be extinguished
and Kim can still demand for the delivery of the Siamese cat.

(B) The debtor must choose, and completely

perform, only ONE alternative prestation. He cannot choose
part of one prestation and part of another prestation. (Article
1199, par. 2)

EXAMPLE B: On March 15, 2010, David

promised Sarah that he will deliver to
her on December 15, 2010 either
1000 sacks of dinorado rice worth
P250,000, P250,000.00 in cash, 20
kilos of shabu, a mermaid from the
pacific ocean, or an owner-type
assembled jeepney.

David cannot deliver to Sarah 500 kilos of dinorado rice

and P125,000.00 in cash. Sarah can refuse to accept the
delivery even if the total value of the delivery amounts to
P250,000 one of the alternative prestations. David has to
choose only one of the alternative prestations, and he must
compeletely perform the chosen prestation.

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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

(C) The debtor cannot choose those prestations

which are impossible, unlawful, or which could not have been
the object of the obligation. (Article 1200, par. 2)

In EXAMPLE B above, David can choose from among

any of the alternative prestations. However, David cannot
choose to deliver 20 kilos of shabu because it is an unlawful
prestation. Neither can he choose to deliver to Sarah a
mermaid from the pacific ocean because it is a physically
impossible prestation.

(D) The choice of the alternative prestation to be

performed will produce legal effect only from the time it is
communicated to the other party. (Article 1201)

The debtor must choose, and communicate his choice

to the creditor. After the debtor has chosen the alternative
prestation he wishes to perform, he must inform the creditor
which among the alternative prestations he will perform.
After the debtor communicates to the creditor his
choice of the alternative prestation to be performed, the
alternative obligation will now be converted into a simple
obligation with only one prestation which is due for
performance on the maturity date of the obligation.
In EXAMPLE A above, Gerald informs Kim on May 30,
2010 that what he will deliver to her on December 15, 2010 is
the tarsier. As of May 30, 2010, the alternative obligation
becomes a simple obligation with only one prestation which
the debtor is obliged to deliver on December 15, 2010 the
delivery of the tarsier.
Remember that it is not required that the creditor give
his consent to the choice made by the debtor. The debtors

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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

right of choice would be rendered useless if he was to get the

creditors approval of what alternative prestation to choose.

(E) The debtor loses his right of choice when only

one alternative prestation is practicable of performance.
(Article 1202)

Assume in EXAMPLE A above that the Siamese cat

and the tarsier both died on the occasion of a tsunami on
November 2, 2010. This is a case when only one alternative
prestation is left to be performed by the debtor. The effect is
the alternative obligation is converted into a simply obligation
with only one prestation. The debtor Gerald will have no other
choice but to deliver to Kim the only remaining prestation (the
bulldog) on December 30, 2010.

3. ARTS. 1204 & 1205. What are the effects of the loss
or impossibility of the alternative prestations BEFORE the right
of choice is exercised?

Once the debtor has communicated his choice of the

alternative prestation to be performed to the creditor, the
obligation becomes simple. If the chosen alternative is lost
without the fault of the debtor, the obligation will be
extinguished (Article 1174). If the chosen alternative is lost
due to the fault of the debtor, the obligation will be converted
into monetary consideration in the form of damages (Article
1170).

What will be the effect then if one or some of the

alternative prestations in the alternative obligation are lost
before the debtor has communicated his choice to the
creditor? The consequences will really depend upon whether
the right of choice was given to the debtor or to the creditor.

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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

(A) When the right of choice belongs to the DEBTOR

(1) If the loss is due to a FORTUITOUS EVENT

(a) If all the alternative prestations are lost, the
alternative obligation is extinguished. (Article
1174)
(b) If two or more of the alternative prestations
remain, the debtor can still exercise his right of
choice and choose from any of the remaining
alternatives. (Article 1200)
(c) If only one of the alternatives remain, there is no
more alternative obligation but only a simple
obligation. The debtor has no choice but to
perform the remaining prestation. (Article 1202)

(2) If the loss is due to the DEBTORS FAULT

(a) If all the alternative prestations are lost, the

alternative obligation is converted into monetary
consideration as indemnity for damages. The
basis for the computation of the amount to be paid
by the debtor will be the value of the last thing or
service lost plus damages. (Article
1204, pars. 1 & 2)
(b) If two or more of the alternative prestations
remain, the debtor can still exercise his right of
choice and choose from any of the remaining
alternatives. (Article 1200, par. 1)
NOTE: Even if the loss of the other alternatives
were due to the debtors fault, the debtor will not
be liable for damages since he has the right of
choice and the obligation can still be performed.
This is an exception to the general rule established

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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

in Article 1170 regarding liability for damages

arising from negligence.
(c) If only one of the alternatives remain, there is no
more alternative obligation but only a simple
obligation. The debtor has no choice but to
perform the remaining prestation with NO liability
for damages. (Article 1202)

Illustrative example and application of the rules in

Articles 1204 & 1205.

(B) When the right of choice belongs to the

CREDITOR

(1) If the loss is due to a FORTUITOUS EVENT The effects

are the same as where the right of choice belongs to
the debtor.

(2) If the loss is due to the DEBTORS FAULT

(a) If all the alternative prestations are lost, the

alternative obligation is converted into monetary
consideration as indemnity for damages. The
basis for the computation of the amount to be paid
by the debtor will be the value of any of the
objects chosen by the creditor (because he is
given the right of choice) plus damages.
(Article 1205, par. 2[3])
(b) If two or more of the alternative prestations
remain, the obligation is still alternative. The
creditor has the option to either:
(b.1.) choose from among the remaining
alternatives; OR

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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

(b.2.) choose the lost object. The debtor will

then be liable for the value of the lost object
chosen by the creditor plus damages.
(Article 1205, par. 2[2])
NOTE 1: When the right of choice belongs to the
creditor, and the loss is due to the debtors fault,
the debtor is liable for damages because the
creditor was deprived of his right to choose.
NOTE 2: In all cases, there is NO communication
of the choice made. If there was already a
communication, there is no more alternative
obligation. The above rules will no longer be
applicable.

4. ART. 1206.

In facultative obligations, there is only one prestation

due to the creditor, but the debtor may perform another
prestation to substitute the original prestation. (Article
1206, par. 1)
In facultative obligations, the right of choice belongs
ONLY to the DEBTOR (Article 1206, par. 1). Once the
substitution is made, the obligation is converted into a simple
one to deliver or perform the substituted prestation.
The substitution also becomes effective only from the
time the debtor communicates to the creditor his choice to
perform the substitute prestation. (Article 1201)
BEFORE substitution, the debtor is not liable if the
substitute prestation is lost whether due to his fault or to a
fortituitous event. This is because what is due before
substitution is the original prestation. If the original prestation
is lost by virtue of a fortuitous event, the obligation is
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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)

extinguished. If the original prestation is lost due to the

debtors fault, he will be liable for damages to the creditor.
AFTER substitution, the debtor is not liable if the
original prestation is lost whether due to his fault or to a
fortituitous event. This is because what is due after
substitution is already the substitute prestation. If the
substitute prestation is lost by virtue of a fortuitous event, the
obligation is extinguished. If the substitute prestation is lost
due to the debtors fault, he will be liable for damages to the
creditor.

NOTE: For lack of material time, I will be sending the

groupings for the special project tomorrow. Please keep
posted. Thank you.