VERITAS COLLEGE OF IROSIN

San Julian, Irosin, Sorsogon

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BACHELOR OF SCIENCE AND BUSINESS ADMINISTRATION (BSBA)
Business Law1
AY: 2020-2021, Second Semester

Subject: OBLIGATIONS AND CONTRACTS

ALTERNATIVE OBLIGATIONS

Art. 1199

1. Kinds of obligation according to number of prestations

a. Simple obligation – one where there is only one prestation, such as the obligation to give a
specific car
b. Compound obligation – one where there are two or more prestation. It may either be
conjunctive or distributive

Conjunctive – where there are several prestations which are all due and need to be
performed, such as the obligation to give a specific ring and a specific bracelet

Distributive – where only one of two or more prestations needs to be performed. It may either
be alternative or facultative

2. Alternative obligation, concept

An alternative obligation is one where several prestations are due but the complete performance
of one of them by the debtor is sufficient to extinguish the debt

3. Right of the creditor to complete compliance of a prestation

The creditor cannot be compelled to receive part of one and part of another prestation.

Art. 1200

1. Right of choice
As a general rule, the right to choose the prestation to be performed belongs to the debtor. The
parties may, however, expressly agree to grant the right of choice to the creditor.

2. Limitations on the debtor’s right to choose

a. The debtor must completely perform the prestation chosen by him. He cannot compel the
creditor to accept part of one prestation and part of another prestation
b. He cannot choose those prestation that are impossible, unlawful or which could not have
been the object of the obligation.

Art. 1201

1. Form of notice
Since no form is required by law, the notice of choice may be given:
a. Expressly, which may be oral or written
b. Impliedly, such as when the debtor already perform one of the prestation

2. Effect of communicating the choice

Once the choice made by the debtor is communicated to the creditor, or by the creditor to the
debtor if the creditor was expressly granted the right of choice, the obligation becomes a simple
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 obligation to perform the prestation selected. The party making and communicating the choice
will no longer be permitted to renounce it and take an alternative that was first available to him.

Art. 1202

1. When alternative obligation is converted into simple obligation

a. When the choice made by the debtor is communicated to the creditor

Example:

On August 01, 2015, D obliged himself to give a specific ring or a specific bracelet or a specific
necklace to C on September 01, 2015. Here, D has the right of choice as no express grant of the
right was made in favour of C. On August 10, 2015, D informed C that he would deliver the ring.
In this case, the obligation ceased to be an alternative obligation and became a simple obligation
to deliver the ring. Therefore, D can no longer select to give either the bracelet or the necklace.

b. When the creditor was expressly granted the right of choice and the choice he made is
communicated to the debtor

Example:

Assume that in the immediately preceding example, C was given the right of choice by
stipulation between him and D. On August 10, 2015, C informed D that he wanted the
bracelet delivered to him. In this case, the obligation ceased to be an alternative obligation
and became a simple obligation to deliver the bracelet. Therefore, C can no longer ask D to
deliver the ring or the necklace.

c. When among the prestations whereby he is alternatively bound, only one is practicable

Example:

On May 01, 2015, D obliged himself to give a specific carabao or a specific horse or a specific
cow to C on June 01, 2015. On May 15, 2015, the carabao and the horse were struck and
killed by lightning while they were on pasture. In this case, the obligation ceased to be an
alternative obligation and became a simple obligation to deliver the cow which is now the only
prestation practicable.

Art. 1203

1. Effect when the debtor cannot make a choice due to the creditor’s act
The debtor may rescind the contract with a right to ask for damages.

Example:

D agreed to paint the Ford van or to paint the Toyota car of C for P 15,000.00. C, however, sells
the Toyota car. Here, D can rescind the contract and ask for damages as he is deprived of the
right of choice.

2. Rescission not automatic

The debtor may choose not to rescind the contract, but to perform any of the remaining
prestations.

Art. 1204

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 1. Application of the provision

The provision applies when:

a. The right of choice belongs to the debtor; and

b. The loss or impossibility happened before the choice was communicated to the creditor

2. Rules in case of loss or impossibility before choice is communicated

a. If only one or some lost through a fortuitous event or through the debtor’s fault, the debtor
may deliver any of the remainder, or that which remains if only one subsists.
b. If all are lost through fortuitous event, the obligation is extinguished (based on the rule that no
person shall be responsible for fortuitous event.)
c. If all are lost though the debtor’s fault, the debtor shall pay the value of the last thing that was
lost plus damages.
d. If all except one are lost through the debtor’s fault, and the remaining item is subsequently
lost through a fortuitous event, then the debtor’s obligation is extinguished.
e. If all except one are lost through a fortuitous event, and the remaining item is subsequently
lost through the debtor’s fault, the debtor shall pay damages.

Art. 1205

1. Application of the provision

The provision applies when:

a. The right of choice was expressly granted to the creditor, and

b. The loss or impossibility happened before the choice was communicated to the debtor

2. Rules in case of loss or impossibility before choice is communicated

a. If only one or some are lost through a fortuitous event, the debtor shall deliver that which the
creditor should choose from among the remainder, or that which remains if only one subsists.
b. If all are lost through a fortuitous event, the obligation shall be extinguished.
c. If only one or some are lost through the debtor’s fault, the creditor may claim any of those
subsisting, or the price of any of those which were lost through the debtor’s fault plus
damages
d. If all are lost through the debtor’s fault, the creditor may claim the price of any of them plus
damages

Art. 1206

1. Facultative obligation, concept

A facultative obligation is an obligation where only one prestation has been agreed upon but the
debtor may render another in substitution

2. Right to determine whether substitute is to be given

The right to determine whether the substitute is to be given or not belongs to the debtor

3. Effect of loss

a. Before substitution, i.e., before the debtor has informed the creditor that he would deliver the
substitute
1) Loss of the principal thing
a) If due to fortuitous event, the obligation is extinguished
b) If due to the debtor’s fault, he shall be obliged to pay damages
2) Loss of the substitute

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 The loss of the substitute whether through a fortuitous event or the debtor’s fault imposes
no additional obligation on the debtor because it is not yet due. The debtor has still to
deliver the principal thing which is the thing due. The loss of the substitute, however,
converts the obligation into a simple obligation.
b. After substitution, e.i., after the debtor has informed the creditor that he would deliver the
substitute

1) Loss of the principal thing

The loss of the principal thing whether through a fortuitous event or the debtor’s fault
imposes no additional obligation on the debtor because it is no longer due. After
substitution, the obligation ceases to be facultative and becomes a simple obligation to
deliver the substitute.
2) Loss of the substitute
a) If due to fortuitous event, the obligation is extinguished
b) If due to the debtor’s fault, he shall be obliged to pay damages

4. Distinctions between an alternative obligation and a facultative obligation

a. In an alternative obligation, several prestation are due but the complete performance of one is
sufficient to extinguish the debt. In facultative obligation, only one prestation, the principal
obligation, is due.
b. In an alternative obligation, if there are void prestations, the others may still be valid; hence,
the obligation remains. In a facultative obligation, if the principal obligation is void, the debtor
is not required to give the substitute.
c. In an alternative obligation, the right of choice belongs to the debtor, unless expressly given
to the creditor. In a facultative obligation, the right of choice belongs to the debtor only.
d. In an alternative obligation, if all prestation are impossible except one that which is possible
must still be given. In a facultative obligation, if the principal obligation is impossible, the
debtor is not required to give the substitute.

MR. ROBERTO G. FORTES, LL.B,MPA

Contact Number: 0906-4512310

0938-6048649

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