Alternative and Facultative

From the point of view of number of prestations involved. Plurality of prestations in one and the same
obligation.

If there are 2 or more prestations to be fulfilled or involved in one obligation, the obligation is classified
as either conjunctive or distributive.

Conjunctive - before the obligation of debtor is considered to be extinguished, he is required to

perform all prestations.

Ex. 3 prestations involved but debtor is required to perform all 3 prestations before his
obligation can be considered extinguished. This will not create any problem.

But if there are many prestations involved in one obligation.

Ex. 5 prestations but debtor is required to perform only 1, or some but not all. This time, we’ll
have questions or problems. Which of the 5 is he required to perform to extinguish? Who has the right
of choice, debtor or creditor?

Alternative – several prestations involved in one and the same obligation but the debtor is not
required to perform all in order for obligation to be extinguished.

 Questions: who has the right to choose which prestation is to be performed? Generally, the right of
choice belongs to debtor, but that may belong to the creditor by way of agreement.
 Since debtor is not required to perform all, what will be the effect of a loss of one or some or all of
the prestations?
o In case of loss of one or some or all: answer depends on 2 things:
 Who has the right of choice?
 What was the reason for the loss?

 If right of choice belongs to debtor:

1. All lost by reason of fortuitous event – debtor’s obligation will be
extinguished for the reason that no person shall be held liable for
the obligation in case of fortuitous event unless stipulation of
parties provide otherwise
2. All lost by reason of creditor’s fault – the debtor cannot exercise his
right of choice; this will be tantamount to extinguishment of
obligation - due to loss without the debtor’s fault and debtor did
not cause delay
3. All prestations lost by reason of debtor’s loss – remedy of creditor
– recover the value of prestation which was the last to disappear
(pinakahuling nawala) art 1204
 4. Only one remains – since the right of choice belongs to debtor,
debtor can choose the one remaining, obligation is turned into a
simple one (art 1202)
5. 2 remaining - debtor can still choose from the remaining
6. What if some were lost by reason of the creditor’s fault and only
one or two prestations was/were left? – is debtor limited to that
which were left? No- pursuant to law, if the right of choice of the
debtor can no longer be exercised for reasons attributable to the
creditor, the law gives the debtor either the right to rescind the
contract plus damages or to choose from the remaining (art 1203)
 If the right of choice belongs to creditor
1. Creditor lost all prestations – this will result in extinguishment of
the obligation
2. If lost due to fortuitous event – obligation is extinguished
3. If all prestations lost due to debtor’s fault – creditor can recover
the price or value of any of the prestations which was lost by reason
of the debtor’s fault
4. What if not all were lost but one, and the others were lost by
reason of the creditor’s fault? – he will have to choose the
remaining; obligation is converted into a simple obligation of
performing that which is still subsisting
5. What if only one is left, other were lost by reason on the debtor’s
fault? – is creditor limited to that subsisting? No. creditor may
choose any of the prestations which were lost plus damages from
the debtor; but, may also choose that which is subsisting, only that
he cannot recover damages from the debtor
 In Alternative obligations, the creditor or debtor cannot choose partly from one of the prestations
and partly from another.
 When does the choice become effective? – once choice is made, what’s left is performance, it
ceases to be alternative, converted into simple obligation --- from the moment it has been duly
communicated to the other party; the other party must have gained knowledge of the choice

Facultative Obligation

 What is Fo distinguished from AO – in FO, there is only one prestation which is due but the debtor
has the right to perform a substitute prestation in liue of that one.
 How is it different from Ordinary obligation? – magiging FO if the parties have agreed that the
debtor can offer a substitute prestation; otherwise, it is a simple prestation which is the
performance of an obligation which is due
 Who has the right of choice? Always the debtor – whether original or substitute; right of choice
can’t be made by creditor because it destroys the FO, it no longer it becomes FO
 The choice becomes effective from the moment the creditor has gained knowledge of the choice
that was made by the debtor
 If debtor is intending to perform the original prestation, is the debtor required to notify the
creditor? No- because that (the original) is what is due.
o Notice to creditor is only needed if the debtor intends to perform a substitute prestation in
lieu of the original
 Effect of Loss of Substitute Prestation
o Loss will not produce any effect because that is not what is due
o If substitute prestation is no longer a substitute because the debtor communicated that he
will be performing it and creditor was made aware, it will become what is due; the loss of
the prestation will now become material