Section 3: Alternative Obligations

ART 1199. A person alternatively bound by different prestations shall completely perform one of them.
The creditor cannot be compelled to receive part of one and part of the other undertaking.
Kinds of obligation according to object.
(1) Simple obligation.
— one where there is only one prestation,
(2) Compound obligation.
— one where there are two or more prestations.
(a) Conjunctive obligation.
— one where there are several prestations and all of them are due
(b) Distributive obligation.
— one where one of two or more of the prestations is due.

Meaning of alternative obligation.

- wherein various prestations are due but the performance of one of them is sufficient
Ex: Minnie obliges herself to deliver to Clarabelle a daisy, a rose, or an orchid.
• What kinds of obligation(s) is(are)this(these)? Why?
→ the example exemplifies alternative obligations because Minnie shall completely perform only one of them
• Minnie chooses to deliver to Clarabelle a daisy, What happened to the other obligations?
→ the other two obligations are extinguished upon the complete performance of one of the obligations
• If it is two daisies, two roses, or two orchids. Minnie then told Clarabelle that she, Minnie, chooses to deliver a rose and a daisy.
Can Clarabelle refuse to consent thereto?
→ Yes, since the creditor cannot be compelled to receive part of one and part of the other prestation.

ART. 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 prestations which are impossible, unlawful or which could not have been the object of the
obligation.
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 a third
person when the right is given to him by common agreement. (Art. 1306.)

Right of choice of debtor not absolute.

- subject to limitations. Thus:
• The debtor cannot choose those prestations which are: (a) impossible, (b) unlawful, or (c) which could not have been the object
of the obligation, as they are void.
→ In other words, under Article 1200, the debtor’s right of choice is not extinguished altogether but limited to the remaining
valid prestations.
• The debtor has no more right of choice, when among the prestations whereby he is alternatively bound, only one is practicable.
→ there is a loss of right of choice to the debtor
→ obligation becomes simple
→ right does not pass to the creditor, nor may it be exercised by any one
• The debtor cannot choose part of one prestation and part of another prestation. (Art. 1199, par. 2.)

Ex: Minnie obliges herself to deliver to Clarabelle two daisies, two roses, or two orchids.
• Who has the right of choice?
→ Right of choice belongs to Minnie, unless it has been expressively given to Clarabelle
• One day before the delivery, Minnie, happy to be outside on a windy day, threw two daisies and two roses up in the air, where
such were blown and gone with the wind. Can Clarabelle demand damages from Minnie?
→ No, since the two daises and two roses are indeterminate, and Minnie can always deliver two daisies or two roses. In addition
to that, since Minnie has the right of choice, she can just choose to deliver the orchids.
• Have the alternative obligations been converted into a simple one?
→ No since the prestations are indeterminate in nature

ART. 1201. The choice shall produce no effect except from the time it has been communicated.
Communication of notice that choice has been made.
Effect of notice.
— Until the choice is made and communicated, the obligation remains alternative
• Once the notice of the election has been given to the creditor, the obligation ceases to be alternative and becomes simple.
• Such choice once properly made and communicated is irrevocable and cannot, therefore, be renounced.
Proof and form of notice
— may be made orally or in writing, expressly or impliedly
ART. 1202. The debtor shall lose the right of choice when among the prestations whereby he is alternatively bound, only
one is practicable.
Effect when only one prestation is practicable.
-If more than one is practicable, it is Article 1200 that will apply.
-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
When debtor may rescind contract.
Rescission creates the obligation to return the things which were the object of the contract together with their fruits, and the price
with its interest.

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.

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 obligation has become
impossible.
The indemnity shall be fxed 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.
Effect of loss or becoming impossible of objects of obligation.
Articles 1203 and 1204 apply when the right of choice belongs to the debtor. Under Article 1205, the creditor has the right to
choose.
• Some of the objects.
— if 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.
— an exception to the general rule established in Article 1170 regarding liability for damages arising from negligence.
• All of the objects.
— If all of them have been lost or have become impossible through the debtor’s fault, the creditor shall have a right to indemnity
for damages
— if the cause of the loss is a fortuitous event, the obligation is extinguished.
The phrase “or the compliance of the obligation has become impossible” refers to obligations “to do.”

Basis of indemnity.
- indemnity shall be fixed taking as 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 obligations 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.
-Other damages may also be awarded. (Art. 1204, pars. 2 and 3.)

Ex: Daisy obliges herself to deliver to Hilda her pair of sunglasses, her pink notebook, or her yellow telescope.
• One day before the delivery, the sunglasses were struck by lightning, destroying it completely (Daisy is safe and sound). Daisy
became angry and tore the notebook to pieces. What can be said of the obligation(s)?
→ The obligation has been converted into a simple one, that is, the delivery of the telescope
• Is daisy liable for the damages caused?
→ No, since she has the right of choice, and she can always choose to deliver the yellow telescope

ART. 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. 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 remainder, or that which remains if only one subsists;
(2) If the loss of one of the things occurs through the fault of the debtor, the creditor may claim any of 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. The same rules shall be applied to obligations to do or not to do in case one, some
or all of the prestations should become impossible.

Where right of choice belongs to creditor.

-the debtor may expressly give the right of choice to the creditor. (Art. 1200.)
-In such a case, the provisions which with respect to the debtor are laid down in the preceding articles, shall be applicable to the
creditor when the right of choice is given to him.
-Before the creditor makes the selection, the debtor cannot incur in delay.

Rules in case of loss before creditor has made choice.

A. only one thing lost – fortuitous event – creditor chooses from the remainder – debtor delivers the choice to creditor;
B. only one remains – debtor delivers the same to the creditor;
C. only one thing lost – fault of the debtor
1. creditor may choose any one of the remainders; 2. creditor may choose the price or value of the one which was lost;
3. may choose 1 or 2 plus damages
D.all things lost – fault of the debtor – creditor may choose the price of ANYONE of the things, with damages if warranted.
E. all things lost – fortuitous event - obligation extinguished

Rules applicable to personal obligations.

- also applicable to personal obligations. (par. 2.)
-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.

Ex: Daisy obliges herself to deliver to Hilda her pair of sunglasses, her pink notebook, or her yellow telescope. The right of
choice has been expressively given to Hilda
• One day before the delivery, the sunglasses were struck by lightning, destroying it completely (Daisy is safe and sound). Daisy
became angry and tore the notebook to pieces. Can Hilda still demand fulfillment of the obligation(s)?
→ Yes, Hilda can still demand for the delivery of the yellow telescope or the price of the notebook, with a right to indemnity for
the damages caused
• Can Hilda demand the price of the sunglasses or seek damages?
→ No, since the sunglasses were lost due to a fortuitous event
• Can Hilda demand the price of the sunglasses or seek damages if ever it was the fault of Daisy? -Yes

ART. 1206. When only one prestation has been agreed upon, but the obligor may render another in substitution, the
obligation is called facultative.
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.
If loss or deterioration happened before substitution is made, obligor is not liable; after substitution is communicated, he is liable
for loss (through delay, negligence or fraud)

Meaning of facultative obligation.

-where only one prestation has been agreed upon but the obligor may render another in substitution.

Effect of loss.
• 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 due to substitute
is not due. The effect of the loss is merely to extinguish the facultative character of the obligation.
• 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 through his fault.
— Once the substitution is made, the obligation is converted into a simple one to deliver or perform the substituted thing or
prestation. It becomes effective from the time it has been communicated. (Art. 1201.)

Alternative and facultative obligations distinguished.

Ex: Coco Luca obliges herself to deliver to Minnie her yellow pair of shoes, or in substitution, a pink basket.
• How would such obligation be classified?
→ The obligation is a facultative obligation, since there is only one prestation but coco Luca may render another prestation in
substitution
• Coco Luca looked at a pink basket that she has bought and decided to keep if herself. Can Minnie collect damages from Coco
Luca if Coco Luca went ahead and keeps the basket for herself?
→ No, since a basket is an indeterminate thing and besides, it is Coco Luca who has the right of choice. The main thing is the
yellow pair shoes.
→ A pink basket is a determinate and generic, Coco Luca can just have another pink basket to substitute and no right of choice
was given to Minnie.