Obligation Concept

1. ART. 1199. A person alternatively bound by different
prestationsshall completelyperformone of them.
The creditor cannot be compelled to receive part of one
and part of the otherundertaking.
(1) Simple obligation. — one where there is only one
prestation, e.g., S obliged himself to deliver to B a piano;
S promisedtorepairthe car of B.
(2) Compound obligation. — one where there are two
or more prestations.Itmaybe.
(a) Conjunctive obligation. — one where there
are several prestations and all of them are
demandable;or
(b) Distributive obligation. — one where one of
two or more of the prestations is demandable.
It may be alternative (Art. 1199.) or facultative.
(Art.1206.)
Alternative when it comprehends several objects or
prestations which are due, but it may be complied with
by the deliveryorperformance of onlyone of them.
Ex: D borrowed from C P10,000. It was agreed that D
could comply with his obligation by giving C P10,000, or
a color televisionset,orbypaintingthe house of C.
Facultative when it comprehends only one object or
prestation which is due, but it may be complied with by
the delivery of another object or the performance of
anotherprestationinsubstitution.
Ex:
Art. 1200. The right of choice belongs to the debtor,
unlessit has beenexpresslygrantedto the creditor.
The debtor shall have no right to choose those
prestations which are impossible, unlawful or which
could not have beenthe object ofthe obligation.
=Rightof Choice inAlternativeObligations
GR- The right of choice belongs or pertains to the
debtor.
Ex: A barrowed 100,000 to B, executed a promissory
note that A can fulfill his obligation either paying the
100,000 or deliverthe car at an appraisedevaluation.
=Limitationof Rightof Choice
GR- the debtor cannot choose those prestations or
undertakings which are impossible, unlawful or which
couldnot have beenthe objectof the obligation.
Art. 1201. The choice shall produce no effect except
from the time it has beencommunicated.
Once the notice of the election has been given to the
creditor, the obligation ceases to be alternative and
becomessimple.
Such choice once properly made and communicated is
irrevocable andcannot,therefore,be renounced
The burden of proving that such communication has
been made is upon him who made the choice. The law
does not require any particular form regarding the
giving of notice. It may, therefore, be made orally or in
writing,expresslyorimpliedly
Ex: A’s house and merchandise were burned and these
propertiesare insured by R, an (insurancecompany).
The policy contained option, where in R may reinstate or
replace the property damaged instead of paying the
amount of loss or damaged but the company shall not
be bound to replace exactly or completely but only to
circumstances it permits and the company shall not be
bound to expend more than the cost of property. Nor
morethan the cost of insured.
Thus the obligation of R is alternative, that it may either
pay the insured value or rebuilt it. R must notify A and A
must be given opportunity to express consent or impugn
the election made by R, the time after the said notice
was consented by A, that is only the time it will take
effect.
ART. 1202. The debtor shall lose the right of choice
when among the prestations whereby he is
alternativelybound,only one is practicable. (1134)
If more than one is practicable,it isArticle 1200 that will
apply. The obligation is still alternative because the
debtor still retains the right of choice. Under Article
1202, if only one is practicable (e.g., the others have
become impossible), the obligation is converted into a
simple one.
ART. 1203. If through the creditor’s acts the debtor
cannot make a choice according to the terms of the
obligation, the latter may rescind the contract with
damages.

2. Rescission creates the obligation to return the things
which were the object of the contract together with
theirfruits,andthe price withitsinterest.
It is the very nature of an alternative obligation that the
debtor can make his choice without the consent of the
creditor. Hence, the right given the debtor to rescind the
contract and recover damages if, through the creditor’s
fault, he cannot make a choice according to the terms of
the obligation. The debtor, however, is not bound to
rescind.
Ex. D borrowed from C P20,000.00. It was agreed that
instead of P20,000.00, D could deliver item one, or item
two,or itemthree.
If through the fault of C, item one is destroyed, D can
rescind the contract if he wants. In case of rescission,
the amount of P20,000.00 must be returned by D with
interest. C, in turn, must pay D the value of item one
plusdamages.
D, instead of rescinding the contract, may choose item
two or three with a right to recover the value of item
one with damages. If D chooses item one, his obligation
isextinguished.Cisnotliable fordamages.
ART. 1204. 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
obligationhas 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. (1135a)
EXAMPLE: S agreed to deliver item one, or item two, or
item three. If item one is lost through the fault of S, he
can still select either item two or item three. The loss of
item one and two with or without the fault of S will
reduce the obligation to a simple one. If all the items
are lost through his fault, liability will attach; if through
a fortuitousevent,the obligationwillbe extinguished.