CHAPTER 3, Section 3

Art. 1199 provides:

“A person alternatively bound by different prestation shall completely

perform one of them.

The creditor cannot be compelled to receive part of one and part of the
other undertaking.”

1. What is the meaning of an alternative obligation? An alternative

obligation is one wherein various prestations (object or subject
matter or required to be observed by the debtor; i.e. to give, to do, or
not to do)are due but performance of one of them is sufficient

2. Give an example of an alternative obligation.

Ex. A promised to deliver to B 5 sacks of rice or 5 sacks of sugar.

3. In the example given above, may A compel be to receive 3 sacks of rice

and 2 sacks of sugar? No, as provided in the 2 nd par. pf Art. 1199, the
creditor may not be compelled to receive part of one and part of the
other undertaking

Art. 1200 provides:

“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.”

4. In an alternative obligation, as a general rule, who has the choice on

which prestation to fulfill? In an alternative obligation, as a general rule
it is the debtor who has the right to choose which prestation to fulfil,
unless expressly given to the creditor

5. Give an example wherein the right of choice is given to the creditor.

Ex. A promised to deliver to B 5 sacks of rice or 5 sacks of sugar, and it

was agreed that when it is time to deliver the items, B will determine what
item to deliver.
6. What are the limitations as to the choice of prestations by the debtor?

 The debtor cannot choose impossible prestations

 The debtor cannot choose unlawful prestations
 The debtor cannot choose those which could not have been
the object of the obligation

7. Give example of alternative obligations with impossible prestations,

unlawful prestation, and those that could not have been the object of the
obligation.
 Ex.
Impossible - A promised to give B PhP 10,000, or 10 sacks of rice or
10 pairs of flying shoes. A cannot choose to give 10 pairs of
flying shoes

Illegal or unlawful - A promised to give B PhP 10,000, or 10 sacks of

rice or 10 grams of shabu. A cannot choose to give 10
grams of shabu

Could not have been the object of the obligation - A promised to give
B PhP 10,000, or 10 sacks of rice or a bicycle owned by A. A
owns 2 bicycle, 1 a rusted bicycle worth PhP 500 pesos, and
another worth PhP 10,000. Based on the circumstances, it
is obvious that the rusted bicycle is not the object of the
obligation. A cannot choose to give the rusted bicycle

Art. 1201 provides:

“The choice shall produce no effect except from the time it has
been communicated.”

8. If a choice has already been made, may it still be change? No, once the
choice is made and communicated, it is irrevocable.

9. Who has the burden of proof of what prestation was chosen? The party
who made the choice shall have the burden of proof to prove notice
to the other party

10. In what form should notice to the other party be made? There is no
required form for the notice, it may be oral, written, express or
implied.

Art. 1202 provides:

“The debtor shall lose the right of choice when among the
prestations whereby he is alternatively bound, only one is practicable.”

When only one (1) prestation remains practicable, then the obligation
ceases to be an alternative obligation, and the debtor is bound to
fulfil the only prestation that is practicable.

11. What kind of an obligation is an obligation with only one (1) prestation or
subject? Simple obligation

Art. 1203 provides:

“If through the creditor’s act, the debtor cannot make a choice
according to the terms of the obligation, the latter may rescind the contract
with damages.”
 Art. 1203 gives the debtor the right to rescind the contract and
recover damages, in the event the debtor cannot make a choice, in
an alternative obligation, due to act/s of the creditor.

12. Give an example of the application of Art. 1203.

Ex. A owes B PhP 10,000. It was agreed that in consideration of the

debt of A to B, A will give B either of the following: (i) bicycle owned
by A; (ii) Watch owned by A; or (iii) a pair of Dr. Martens shoes
owned by A.

If through the fault of B, the watch owned by A was destroyed, A has

the right to rescind the contract and recover damages from B.

If the contract is rescinded, A must pay B PhP 10,000 with interest,

while B must pay A the value of the thing plus damages.

If A chose not to rescind, A may choose between the bicycle, the

watch, and the shoes to give B. If A choose to give B the watch, B is
not liable for damages. If A chooses to give B the bicycle or the
shoes, A may recover the value of the watch plus damages.

Art. 1204 provides:

“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.”

Art. 1204 contemplates a scenario where all the objects or prestation

of an alternative obligation were all lost or compliance has become
impossible due to the fault of the debtor.

13. Give an example of the application of Art. 1204.

Ex. A owes B PhP 10,000. It was agreed that in consideration of the

debt of A to B, A will give B either of the following: (i) bicycle owned
by A; (ii) Watch owned by A; or (iii) a pair of Dr. Martens shoes
owned by A.

If through the fault of A, the bicycle, the watch, and the shoes were
all lost, and the last thing that was lost is the bicycle. A shall
indemnify B taking into account the value of the bicycle, plus
damages.

14. If all the object or prestation (bicycle, watch, and shoes) were lost due to
fortuitous event, is the debtor liable? No, the obligation is extinguished
 Art. 1205 provides:

“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: …………”

Art. 1205 is applicable in alternative obligation, where the right of

choice, as to which prestation should be fulfilled is given to the
creditor.

15. What is the rule in alternative obligation, where the right of choice is
given to the creditor, and the subject or prestation is lost?

(a) When one (1) of the object or prestation is lost due to fortuitous
event, and one (1) or more object or prestation remains

The debtor shall perform the object or prestation that the creditor may
choose from what remains

Ex. A owes B PhP 10,000. It was agreed that in consideration of the

debt of A to B, A will give B either of the following: (i) bicycle owned
by A; (ii) Watch owned by A; or (iii) a pair of Dr. Martens shoes
owned by A.

The bicycle was lost due to fortuitous event, the creditor may choose
between the watch or the shoes.

(b) When one (1) of the object or prestation is lost due to debtor’s
fault, and one (1) or more object or prestation remains

The debtor shall perform the object or prestation that the creditor may
choose from what remains or the value of the object or prestation lost
plus damages

Ex. A owes B PhP 10,000. It was agreed that in consideration of the

debt of A to B, A will give B either of the following: (i) bicycle owned
by A; (ii) Watch owned by A; or (iii) a pair of Dr. Martens shoes
owned by A.

The bicycle was lost due to debtor’s fault.

The creditor may choose between the watch or the shoes, plus
damages or the price of the bicycle with damages

(c) When all the object or prestation is lost due to fortuitous event

The obligation is extinguished

Ex. A promises or obliged himself to give B either of the following:

(i) bicycle owned by A; (ii) Watch owned by A; or (iii) a pair of Dr.
Martens shoes owned by A.
 The bicycle, watch, and shoes was lost due to fortuitous event, the
obligation is extinguished

(d) When all the object or prestation is lost due to debtor’s fault

The creditor may demand payment of the price of any of the object or
prestation plus damages

Ex. A promises or obliged himself to give B either of the following:

(i) bicycle owned by A; (ii) Watch owned by A; or (iii) a pair of Dr.
Martens shoes owned by A.

The bicycle, watch, and shoes was lost due to A’s fault

B may demand payment for the value or either the bicycle, watch or
shoes, plus damages

Art. 1206 provides:

“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.”

1st par of Art. 1206 defines a facultative obligation.

16. What is the meaning of a facultative obligation? Facultative obligation

is one where only one prestation has been agreed upon but the
obligor may render another in substitution.

17. Give an example of a facultative obligation.

Ex. A promised or obliged himself to give B, A’s bicycle, but A may give
his watch as a substitute.
The object or prestation is to give A’s bicycle, to give A’s watch is a mere
substitute

18. In facultative obligation, is the debtor liable, if the substitute deteriorates

or is lost due to debtor’s fault, delay, or fraud?

Depends, if no substitution has been made, the debtor is not liable,

however, if a substitution has already been made, the debtor shall be
liable

19. In facultative obligation, is the debtor liable, if the substitute deteriorates

or is lost due to fortuitous event? No.
 20. In facultative obligation, when does the substitution become effective?
From the time the substitution is communicated by the debtor to the
creditor

21. In a facultative obligation, who has the right of choice to substitute?

Only the debtor has the right of choice to substitute

Distinction between Alternative obligation and Facultative obligation

Alternative Obligation Facultative Obligation

No. of Object or 2 or more object or 1 object or prestation

Prestation prestation

Right of choice The creditor or debtor Debtor alone has the right of
may be given the right of choice
choice

Loss due to fortuitous Loss due to fortuitous event

event of 1 or more object of the object or prestation,
Effect of loss of
or prestation, as long as 1 even if the substitute exist,
1 prestation due
object or prestation extinguishes the obligation
to fortuitous
remains, the obligation is
event
not extinguished

Where the right of choice Loss due to the fault of the

is vested upon the debtor, debtor of the object or
Effect of loss of
the loss due to the fault of prestation, the debtor is
prestation due
the debtor of 1 or more liable for damages
to debtor’s fault
object or prestation, as
long as 1 object or
prestation remains, the
debtor is not liable for