Alternative and Facultative Obligation

What is the effect if the obligation is in the alternative or facultative in its fulfillment? Cite 2
examples for each.

Alternative obligation has several prestation due to the creditor, but the performance by
the debtor of any one of the prestation is sufficient compliance with the obligation (Article 1199).
Additionally, creditor cannot be compelled to receive part of each of the choices (Cash,
Cellphone or TV) for the satisfaction of the obligation. However, if the creditor agrees to receive
portion of each, there is no prohibition. There is novation in the prestation. 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 which are impossible, unlawful, or which could not
have been the object of obligation (Article 1200).

Example of Alternative Obligation

1. Percy borrowed the laptop from Dionysus and promised to give it back after a week if
any incident happens, Percy has the alternative to pay either laptop, or an iPhone 11, or
40” LED TV.

2. Aphrodite borrowed P4000 from Athena. They agreed that if Aphrodite couldn't pay the
P4000 she will give her a pedicure and manicure with massage for 6 months or she will
give her an antique furniture. If the antique furniture was destroyed by a fortuitous event.
Aphrodite has to give her a pedicure and manicure with massage for 6 months.

Facultative obligation the debtor is bound to perform one prestation is due to deliver one
thing with a reserved right to choose another prestation or thing as substitute for the principal.
Additionally, 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
(Article 1131). Lastly, facultative obligation refers to a type of obligation where one thing is due,
but another is paid in its place. In such type of obligation there is no alternative provided. The
debtor is given the right to substitute the thing due with another that is not due.

Example of Facultative Obligation

1. Ned will give Peter his Mercedez Benz but he may give his BMW as a substitute.

Principal: Mercedez Benz

Substitute: BMW

Substitution:
 (a) The Mercedez Benz is lost during fortuitous event the obligation of Ned is
terminated.
(b) The Mercedez Benz is lost because of Ned – Ned is liable for the damages.
(c) The BMW is lost with/without fault of Ned – Ned is still liable to deliver the Mercedez
Benz; He is not liable for the loss of the BMW as it is not expected.

2. Tony promised to give Pepper 1-week day-off or a set of jewelry as a substitute but he
didn’t tell Pepper about the jewelry set as his substitute. Unfortunately, due to his busy
schedule he forgot to buy the jewelry set so he sticks to the 1-week day-off. Tony is not
liable for the incident because Pepper didn’t know about the substitution but Tony is still
liable to give Pepper the 1-week day-off.