ALTERNATIVE AND FACULTATIVE OBLIGATIONS ART. 1199. them.

A person alternatively bound by different prestations shall completely perform one of

The creditor cannot be compelled to receive part of one and part of the other undertaking. (1131)

Meaning of Alternative Obligation It means an obligation where two or more prestations are due but the delivery of one is sufficient to extinguish the obligation. Example: Gaya binds herself to give Tito either a determinate refrigerator or a TV set. If Gaya chooses and delivers the TV set, the obligation is extinguished. Thus, Gaya cannot compel Tito to accept part of one and the part of the other prestations.

ART. 1200. creditor.

The right of choice belongs to the debtor, unless it has been expressly granted to the

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. Rule on Who Makes the Choice – As a general rule, the right of choice or to select the prestation belongs to the debtor, unless the right to choose is expressly granted to the creditor. But the right of the debtor is subject to the following: The debtor cannot choose those prestations which are: a) Impossible – E.g.- Gaya promised to deliver to Tito 100 sacks of rice or a stone from Mars. Gaya cannot chose to deliver the stone coming from Mars as it is physically impossible. b) Unlawful – E.g. Gaya obliged herself to deliver to Tito a kilo of dangerous drug or a parcel of land. Gaya can choose only the delivery of parcel of land. c) Could not have been the object of the obligation - E.g. Gaya borrowed from Tito P50, 000. It was agreed that Gaya would give Tito her horse or her German Piano. Now, Gaya has two horses, a race horse worth P50, 000 and an ordinary horse which is worth for only P5, 000. Gaya cannot choose

g. Gaya will deliver to Tito her carabao. 1202) – E. all the things which are alternatively the object of the obligation have been lost. If Through The creditor’s acts the debtor cannot make a choice according to the terms of the obligation.) Until the choice is made and communicated. When debtor may rescind contract: If through the creditor’s fault. Gaya could deliver a TV set or a refrigerator or a piano. Right of Choice Must be Communicated – a.d) Only one prestation is practicable (Art. b. Gaya can rescind the contract if she wants. 1205. The creditor shall have a right to indemnity for damages when. the obligation remains alternative. Example: Gaya borrowed from Tito P5. or the compliance of the obligation has become impossible. ART. the debtor cannot made a choice according to the terms of the obligation the debtor is given the right to rescind and recover damages. must pay Gaya the value of the TV set plus damages. (Art. the obligation ceases to be alternative and becomes a simple obligation. . or her horse or her refrigerator. (1133) The choice shall produce no effect except from the time it has been communicated.00. the amount of P 5. ART. Tito. Gaya can only delivery the refrigerator which is the only one practicable. the TV set was destroyed. it was agreed that instead of P5.) Where the choice has been expressly given to the creditor. in turn. the communicated. Through no fault of Gaya. only one is practicable. ART. the horse and the carabao were lost by fortuitous event. Once the notice to the effect that a choice is made. 000. 000. 1201. 1202. the latter may rescind the contract with damages. 000. If through the fault of Tito. 1) ART. such choice shall likewise produce legal effects upon being communicated to the debtor. through the fault of the debtor.00 must be returned by Gaya with interest. 1203. In case of rescission. The debtor shall lose the right of choice when among the prestations whereby he is alternatively bound. par. 1204.

2) If the loss of one of the things occurs through the fault of the debtor. with a right to damages 3) If all the things are lost through the fault of the debtor. the creditor may claim any of those subsisting. the rules are as follows: 1. The indemnity for which the creditor is entitled shall be based on the value of the last thing which disappeared or lost or the compliance of the obligation has become impossible. ART. When the choice has been expressly given to the creditor. 1205. the obligation shall cease to be alternative from the day when the selection has been communicated to the debtor. or the price of that which. (1136a) When Right of Choice is With Creditor and All Prestations Were Lost: This article provides for the rules to be observed when the right of choice is expressly granted to the creditor. Damages other than the value of the last thing or service may also be awarded.The indemnity shall be fixed taking as a basis the value of the last thing which disappeared. 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. the choice by the creditor shall fall upon the price of any one of them. The same rules shall be applied to obligations to do or not to do in case one. has disappeared. When a thing is los through a fortuitous event Example: . or that which remains if only one subsists. Some or all of the prestations should become impossible. he shall perform the obligation by delivering that which the creditor should choose from among the remainder. through the fault of the former. or that of the service which last became impossible. (1135a) When right of choice is with debtor and all prestations were lost – This article entitles the creditor to indemnity for damages when all the alternative objects are lost through the fault of the debtor before he has made his choice. also with indemnity for damages.

Alternative and Facultative Distinguished – . then Tito can demand the payment of the price of any one of them with a right to indemnity for damages. or a piano. If the TV set was lost through fortuitous event. Meaning of Facultative Obligation – A facultative obligation is one where only one prestation has been agreed upon but the obligor may render another in substitution. the obligation is called facultative. 4. the obligor is liable for the loss of the substitute on account of his delay. Tito may claim the refrigerator or the piano with a right of damages or the price of the TV set with a right of damages. does not render him liable. The loss or deterioration of the thing intended as a substitute. negligence or fraud. When a thing is lost through debtor’s fault Example: If the loss of the TV set occurs through the fault of Gaya. 3. When all the thing are lost through a fortuitous event Example: The obligation of Gaya shall be extinguished if all the items which are alternatively the object of the obligation are lost through a fortuitous event (Art. 1206.Gaya obliged herself to deliver to Tito a TV set. ART. But once the substitution has been made. through the negligence of the obligor. Tito can choose from among the remainder or that which remains if only one subsists. 2. 1174 will apply). but the obligor may render another in substitution. When all the things were lost through debtor’s fault Example: If all the items are lost through the fault of Gaya. When only one prestation has been agreed upon. Example: I will give you my piano but I may give my television set as a substitute. or a refrigerator.

5) As to things due – In facultative – only the principal obligation is due by may substitute another. B and C are jointly liable. 3) As to validity or nullity – In facultative – if the principal thing is unlawful or impossible. There are two debtors and two creditors. There is one debtor and three creditors. Each creditor can demand only P3. Solidary Obligation – There are solidary liability when 1) The obligation expressly so states. there is no need of delivering the substitute in alternative – if one of the thing is unlawful or impossible. 000. C and D P9. The presumption is that A. there are several things due but the delivery of one is sufficient. 2) As to things due – In facultative – only the principal obligation is due by may substitute another. Example of different instances 1) A. Joint Obligation – It is an obligation where there is a concurrence of two or more debtors or two or more creditors or of several debtors and creditors. or 2) The law requires solidarity or 3) The nature of the obligation requires solidarity. there are several things due but the delivery of one is sufficient. and C borrowed P9. D can demand only P3. there is no need of delivering the substitute in alternative – if one of the thing is unlawful or impossible. 500 from each debtor. in alternative. 000. there is still a need to deliver any of those which remain valid or the only remaining one is valid. in alternative. 000. 4) As to choice – In facultative – the right for substitution is given only to the debtor in Alternative – the choice may be given either to the debtor or to the creditor. 2) A borrowed from B.1) As to choice – In facultative – the right for substitution is given only to the debtor in Alternative – the choice may be given either to the debtor or to the creditor. Each creditor can demand only P4. B. 3) A and B are liable to C and D for P9. by virtue of which each of the debtors is liable for a proportionate part of the credit. 000 from each or a total of P9. there is still a need to deliver any of those which remain valid or the only remaining one is valid. 000 for D. 6) As to validity or nullity – In facultative – if the principal thing is unlawful or impossible. 000 from A. Kinds of Solidary Obligation .

If the division is impossible. 1209. Nor does solidarity of itself imply indivisibility.  Example – A and B are solidary debtors of C in the amount of P 10. (n) . where anyone of them can be made liable for the fulfillment of the entire obligation. B and C are solidary creditors. 3. ART. is that it is joint. Solidarity not presumed  The presumption. the right of the creditors may be prejudiced only by their collective acts. Solidarity between debtors increases their responsibility while solidarity between creditors presuming that they are bound jointly and not solidarily. ART. the others shall not be liable for his share. 4. 1210. 000. entire compliance with the obligation. and the debt can be enforced only by proceeding against all the debtors. Mixed Solidarity – solidarity on the part of the debtors and creditors where each one of the debtors is liable to render and each one of the creditors has a right to demand. 000.1. where there are two or more persons in the same obligation. solidary creditors in the amount of P 10.  Example – A is liable to B and C for the amount of P10. Example – A and B are jointly liable to give C a particular car. the creditor must proceed against al the joint debtor. Active – solidarity on the part of the creditors. the others shall not be liable for others. Indivisible Joint Obligation – The object is indivisible and the T/E between the parties are merely proportionately liable. The obligation is joint but since the object is indivisible. Passive – solidarity on the part of the debtors. If any of the joint debtors be insolvent. where anyone of them can demand the fulfillment of the entire obligation. The reason is that solidary obligations are very burdensome for they create unusual rights and liabilities.  Example – A and B are solidarity debtors to C and D. The indivisibility of an obligation does not necessarily give rise t solidarity. If one of the latter should be insolvent. 000 2.

(Art. D will get his share only after he passes the CPA exams and E will get his share only after he painted the house of C. 1213. 2. A solidary creditor cannot assign his rights without the consent of the others. but not anything which may be prejudicial to the latter. 000. Not Prejudicial Acts – A solidary creditor may do any act beneficial or useful to the others but he cannot act prejudicial to them. the act of one solidary creditor in making a judicial demand upon any of the solidary debtors is sufficient. ART. (1141a) ART. Joint indivisible obligation – A and B are jointly liable to give C their car. Solidary indivisible obligation – A and B are solidarily liable to give C their car. Examples: 1. The solidary character of the obligation is not destroyed even if the creditors and debtors are bound by different terms and conditions. Solidarity may exist although the creditors and the debtors may not be bound in the same manner and by the same periods and conditions.Indivisibility as Distinguished from Solidarity Indivisibility refers to the subject matter while solidarity refers to the Tie between the parties. 1155. 000. Example of Beneficial Acts – To interrupt the running of prescription. 1212. 3. and D and E to the following conditions. 000 to C. Each one of the solidary creditors may do whatever may be useful to the others. NCC) . ART. Example: A and B solidarily bound themselves to pay a total of P10. 1211. C’s share will be due at the end of the year. Solidary divisible obligation – A and B are solidarily liable to give C P10. 4. Solidary Creditors May Do Useful Act. Joint divisible obligation – A and B are jointly liable to C for P10. The solidarity is still preserved by recognizing in the creditor the power of claiming from any or all debtors the payment of the entire obligation.

1212. payment should be made to him. The creditor who may have executed any of these acts. 000. judicially or extra-judicially. it is logical that he is liable to the other solidary creditors for their corresponding shares considering that such acts are prejudicial to them. made by any of the solidary creditors or with any of the solidary debtors. so long as the debt has not been fully collected. (Art. payment should be made to him who made the demand. 1216. has been made by one of them. If A paid C. Compensation. Payment to Any of the Solidary Creditors The rule is that the debtor may pay any one of the creditors. Art. A may pay either B or C But if B made a demand then payment should only be made to him. as well as he who collects the debt. and the obligation is extinguished. compensation. Novation. But when a demand is made by any of the creditors.Example of Prejudicial Acts – Should not be performed. some or all of the solitary creditors simultaneously so long as it has not been fully collected. in the case of remission or condonation. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others. judicial or extrajudicial. Confusion or Remission – When a creditor who executed any of these acts. the creditor may proceed against any. confusion or remission of the debt. otherwise. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. ART. 1214. shall be liable to the others for the share in the obligation corresponding to them. Example A is liable to B and C P5. The debtor may pay any one of the solidary creditors but if any demand. (1144a) Creditor May Proceed Against Any Solidary Debtor – In a solidary obligation. B is still entitled to his share from A in case C does not turn over to B his share. 1215. . shall extinguish the obligation. NCC) ART. without prejudice to the provisions of article 1219. there will be liability for damages. However. the solidary creditor is allowed to so remit. Liability of Solidary Creditor in case of Novation.

B and C are solidarily liable to D and E in the amount of P9. 31. such share shall be borne by all his co-debtors. both A and B shall bear the insolvency in proportion to their shares. ART. Payment made by one of the solidary debtors extinguishes the obligation. 31. If demand is made on A. the latter may choose which offer to accept. If the payment is made before the debt is due. If both A and B offer to pay D on Dec. When one of the solidary debtors cannot. 000 each with interest from the date of payment. He who made the payment may claim from his co-debtors only the share which corresponds to each. the obligation is extinguished. Example – A. in proportion to the debt to each. 000 due on Dec. because of his insolvency. if C is insolvent. with the interest for the payment already made. D can collect from A or B or C alone or from any two of them or all of them simultaneously. 1218. (1145a) Effects of Payment by a Solidary Debtor – Payment is one of the ways by which an obligation is extinguished and consist in the delivery of the thing or the rendition of the service which is the object of the obligation. 000 on Dec. 000. If two or more solidary debtors offer to pay the creditor may choose which offer to accept. no interest for the intervening period may be demanded. ART. B and C solidarily owe D the amount of P9. (n) Effect of Payment After Obligation Has Prescribed or Become Illegal – Prescription – is one where one acquires ownership and other rights through the lapse of time in the manner and under the conditions laid down by law. The payment of A gives him the right of reimbursement from B and C P3. the latter cannot require D to make a demand also on B and C or to include them as party defendants as D has the right to proceed against any one of them. 31. 1217.Example A. reimburse his share to the debtor paying the obligation. However. Example – . Payment by a solidary debtor shall not entitle in to reimbursement from his codebtors if such payment is made after the obligation has prescribed or become illegal. If A pays the entire amount of P9.

The debt prescribed. There is no more to remit.A and B are solidarily indebted to C in the amount of P 10. Notwithstanding the prohibition. 000. (1146a) ART. (1147a) Rules in Case thing has Been Lost or Prestation Has Become Impossible . 1219. If A paid the debt. ART. does not entitle him to reimbursement from his co-debtors. 1221. the remission is of no effect. 3) If one of the solidary debtors obtained remission on the whole obligation. ART. Neither can A can recover from C. he is not entitled to reimbursement from his co-debtors because remission is essentially gratuitous. The remission of the whole obligation obtained by one of the solidary debtors. B is not anymore entitled to reimbursement from A. Remission by Creditor – 1) If payment if made first. If the thing has been lost or if the prestation has become impossible without the fault of the solidary debtors. If through a fortuitous event. all shall be responsible to the creditor. the provisions of the preceding paragraph shall apply. 2) If remission is made prior to the payment and payment is made. then there is payment by mistake. B performed the obligation by delivering the prohibited drugs. The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his responsibility towards the co-debtors. Becomes Illegal – A and B are solidarily bound to deliver medical drugs to C. the thing is lost or the performance has become impossible after one of the solidary debtors has incurred in delay through the judicial or extrajudicial demand upon him by the creditor. If there was fault on the part of any one of them. 1220. without prejudice to their action against the guilty or negligent debtor. the transaction of such medical drugs were later prohibited by law. he cannot collect form B his share of the debt. for the price and the payment of damages and interest. in case the debt had been totally paid by anyone of them before the remission was effected. the obligation shall be extinguished.

1. The entire debt was paid by d. B and C are solidarily bound to deliver a determinate car to D. With respect to those which personally belong to the others. The debtors. Without any fault on the part of any one of the debtors. The defenses derived from the nature of the obligation. the latter can raise the defense of payment by virtue of which the obligation was extinguished. 000. he may avail himself thereof only as regards that part of the debt for which the latter are responsible. anyone of them may be held liable by D for the price of the car plus damages. . 1222. The solidary debtors are likewise liable even if the thing is lost through fortuitous event if the loss occurs after anyone of the solidary debtors has been in delay. the car was lost through the fortuitous event. The debtors who did not any fault on the lost of the car have the right to recover from the codebtor who is at fault. such as minority. 2. If in the preceding paragraph. insanity and vitiated consent. 2. Example A and B are solidarily liable to C in the among to P6. the car was lost through the fault of anyone of the solidary debtors. avail himself of all defenses which are derived from the nature of the obligation and of those which are personal to him. The obligation is extinguished. such as fraud prescription. payment or performance. remission illegality or absence of consideration. 3.  Example: A. however who were not in delay have the right to recover from their co-debtors who was responsible due to his delay. Defenses available to a Solidary Debtor – The defenses available to the solidary debtors if the creditor proceeds against him alone for the payment of the entire obligation 1. the obligation is extinguished. or pertain to his own share. ART. in actions filed by the creditor. Defenses personal to him or pertaining to his own share. in an action by C against A. A solidary debtor may. If the thing is lost or has become impossible to perform through a fortuitous event without the fault of the debtor.

Defenses which are personal to others. insanity and vitiated consent.3. What are the ways that debts are extinguished? (8 ways) . Exercise: (50 pts) 1. Provide an example of the following: a.) facultative obligation 2.) joint obligation c. such as minority.) a solidary obligation b.

Sign up to vote on this title
UsefulNot useful