2. ARTICLE 1999
A person alternatively bound by different
prestation’s shall completely perform one
of them.
3. ART. 1999.
• The creditor cannot be compelled to receive part of the
other undertaking.(1131)
• Kinds of obligation according to object.
They are:
(1)Simple obligation – one where there is only one (1)
prestation.
4. ART. 1999.
(2) Compound obligation – one where there are two (2) or
more presentations. It may be:
(a)Conjunctive obligation - one where there are several
prestation’s and all of them are due; or
(b) Distributive obligation – one where two (2) or more of the
prestation’s is due. It may be.
5. ART. 1999.
1) Alternative obligation – one where several prestation’s are
due but the performance of one is sufficient (Art. 1199.); or
2) Facultative obligation – one where only one prestation’s is
due but the debtor may substitute another. (Art. 1206.)
6. ART. 1999.
Alternative Obligations
An alternative obligation, is one where in various
prestation’s are due but the performance of one of them
is sufficient as determined by the choice which, as a
general rule, belongs to the debtor.
(8 Marchesa 176; Art. 1200.)
8. Article 1200. 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 prestation’s which are impossible,
unlawful or which could not have been the
object of the obligation. (1132)
9. Right of choice, as a rule,
given to debtor.
As a general rule, the right to choose the
prestation belongs to the debtor.
By way of exception, it may be exercised
by the creditor but only when expressly granted
to him (Art. 1205), or by common agreement
(Art. 1306)
10. EXAMPLES:
D insured his house with C, an insurance
company. It is agreed that if the house is
destroyed or damaged, D may pay the damage
or loss or “reinstate or rebuild the house.”
Since nothing is said in the contract as to
who has the right of choice, it belongs to C.
11. S binds himself to deliver an item, one
or two item to B on December10 and to
communicate his choice on or before
December 5.
If S delays in making his choice, B
cannot exercise the right because it is
not expressly granted to him.
12. ARTICLE 1201
The choice shall produce no effect except
from the time it has been communicated.
(1133)
13. ART. 1201
Communication of notice that choice has been made.
(1)Effect of notice – until the choice is made and
communicated, the obligation remains alternative.
(a)Once the notice of the election has been given to the
creditor, the obligation ceases to be alternative and
becomes simple.
14. ART. 1201
(b) Such choice once properly made and communicated is
irrevocable and cannot, therefore, be changed by either party
without the consent of the other. The concurrence of the creditor
to the choice made by the debtor is not required. (see Art. 1200.)
Where the choice has been expressly given to the creditor, such
choice shall likewise produce legal effects upon being
communicated to the debtor. (par. 1, Art. 1205.)
15. ART. 1201
(2) Proof and form of notice – The burden of providing 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, expressly or impliedly.
16. ARTICLE 1202
The debtor shall lose the right of choice
when among the prestation’s where by he is
alternatively bound, only one is practicable.
(1134)
17. ART. 1202
Effect when only one prestation is practicable.
If more than one is practicable, it is Article 1200 that
will apply. The obligation is still alternative because
the debtor has still the right of choice. If only one is
practicable (e.g., the others have become impossible),
the obligation is converted into a simple one.
18. ARTICLE 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.
19. When debtor may rescind contract.
Rescission (see Art. 1191.) creates the obligation to return the things
which were the object of the contract together with their fruits, and the
price with its interest. (par. 1, Art. 1385.)
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 to
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.
20. Example
D borrowed from C P10,000. It was agreed that instead of P10,000, D
could deliver item one, or item two, or item three.
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 P10,000 must
be returned by D with interest. C, in turn, must pay D the value of item
one plus damages.
D, instead of rescinding the contract, may choose item two or item three
with a right to recover the value of item one with damages. If D chooses
item one, his obligation is extinguished. C is not liable for damages.
21. ARTICLE 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
obligation has become
impossible.
Damages other than the value
of the last thing or service may
also awarded. (1135).
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.
22. ART. 1204
1.) Some of the objects – if some of the objects of the obligation have
been lost or have become impossible even through the fault of the debtor,
the latter is not liable since he has the right of choice and the obligation
can still be performed.
2.) All of the objects – if all of them have been lost or have become
impossible through his fault, the creditor shall have the right to indemnity
for damages since the obligation can no longer be complied with.
The phrase “or the compliance of the obligation has become impossible”
refers to obligation “to do”.
Effect of loss of objects of obligations.
23. ART. 1204
X agreed to deliver item one, or item two, or item three.
If item one is lost through the fault of X, he can still select either item
two or item three. The loss of item one and two with or without the fault of
X will reduce the obligation to a simple one.
Example:
24. ART. 1204
The indemnity shall be fixed taking as a basis the value of the
last thing which disappeared (referring to obligations to give) or
that of the service which last became impossible (referring to
obligation to do). In case of disagreement, it is incumbent upon
the creditor to prove such value or which thing last disappeared
or which service last became impossible.
Basis of Indemnity.
25. ARTICLE 1205
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.
26. ART. 1205
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, he shall perform the obligation by delivering
that which the creditor should choose from among the
reminder, or that which remains if only one subsists;
27. ART. 1205
2. If the loss of one of the things occurs through the fault
of the debtor, the creditor may claim any those subsisting,
or the price of that which, through the fault of the former,
has disappeared, with a right to damages;
3. If all the things are lost through the fault of the debtor,
the choice by the creditor shall fall upon the price of any
one of them, also with indemnity for damages.
28. ART. 1205
When right of choice belongs to creditor.
In alternative obligations, the right of choice, as a rule,
belongs to the debtor. Nevertheless, the debtor may
expressly give the right of choice to the creditor.
(Art.1200.). In such a case, the provisions with respect to
the debtor as laid down in the preceding articles shall be
applicable to the creditor when the right of choice is given
to him.
29. ART. 1205
Rules applicable to personal obligations.
The above rules are also applicable to personal
obligations. The responsibility of the debtor for
damages depends upon whether the cause
which has rendered the obligation impossible
was due to his fault or not.
30. ARTICLE 1206
When only one prestation has been agreed
upon, but the obligor may render another in
substitution, the obligation is called facultative.
31. ART. 1206
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.
32. ART. 1206
A facultative obligation is one where
only one prestation has been agreed
upon but the obligor may render
another in substitution.
33. ART. 1206
Effect of loss
1. Before substitution- if the principal thing is lost
through a fortuitous event, the obligation is
extinguished; otherwise, the debtor is liable for
damages. The loss of the thing intended as a
substitute with or without the fault of the debtor does
not render him liable.
34. ART. 1206
2. After substitution- if the principal thing is lost, the
debtor is not liable whatever may be the cause of the
loss, because it is no longer due. If the substitute is
lost, the liability of the debtor depends upon
whether or not the loss is due to his fault.
35. Alternative and facultative obligations
distinguished
1. Number of prestation- In the first, several prestation’s are
due but compliance with one is sufficient, while in the second,
only one prestation is due although the debtor is allowed to
substitute it;
2. Right of choice- In the first, the right of choice may be
given to the creditor or third person, while in the second, the
right to make the substitution is given only to the debtor;
36. Alternative and facultative obligations
distinguished
3. Loss through a fortuitous event- In the first,
the loss of one or more of the alternatives
through a fortuitous event does not extinguish
the obligation, while in the second, the loss of
the thing due extinguishes the obligation; and
37. Alternative and facultative obligations
distinguished
4. Loss through fault of debtor
a.) In the first, the loss of one of the alternatives
through the fault of the debtor does not render him
liable, while in the second, the loss of the thing due
through his fault makes him liable;
38. Alternative and facultative obligations
distinguished
b.) In the first, where the choice belongs to the
creditor, the loss of one alternative through the fault
of the debtor gives rise to liability, while in the second,
the loss of the substitute before the substitution
through the fault of the debtor does not render him
liable.
39. GROUP 3
GALLEGOS, BRITNEY
GANDOL, LESLIE ANNE
GARCIA, LESLIE ANN
GATCHALIAN, MONICA
HABON, JASPER
IBARRA, JOANNA
IBRAO, ERICKA
LONGOS, JEAN ROSE
