HANDOUT NO.

Alternative obligation – one wherein various prestations are due but performance of
one of them is sufficient. (Art. 1199)

Basic Guide – 1) To whom is the right of choice given? (Gen. rule – belongs to debtor)
2) Was the right of choice exercised?

Facultative Obligation – one where only one prestation is due/has been agreed upon
but the debtor may substitute another. (Art. 1206)

Effect of Loss

BEFORE SUBSTITUTION

If principal thing is lost due to fortuitous event – Debtor is not liable. (Art. 1174)
If principal thing is lost due to debtor’s fault – Debtor is liable for damages
If substitute is lost due to fortuitous event or due to debtor’s fault
– Debtor is not liable. Why? Substitute is not due, it merely extinguishes
the facultative character of the obligation.

AFTER SUBSTITUTION

If principal thing is lost due to fortuitous event or due to debtor’s fault

– Debtor is not liable. Why? Principal thing is no longer due.
If substitute is lost due to fortuitous event – Debtor is not liable (Art. 1174)
If substitute is lost due to debtor’s fault – Debtor is liable for Damages (Art.
1206)

Point of Distinction Alternative v. Facultative

Prestation/s due Several but compliance Only one but debtor is allowed to
with one is sufficient substitute it

Right of Choice debtor/creditor/3rd person debtor only (as to substitution)

Loss of one or more does not extinguish loss of thing due extinguishes
of the alternatives due (can still choose) the obligation
to fortuitous event

Loss due to debtor’s debtor is not liable debtor is liable

fault of one or some (debtor can still choose)
of the objects

If choice given to debtor is liable loss of the substitute before the

creditor, loss of the substitution due to debtor’s
one of the alternatives fault, debtor is not liable.
due to debtor’s fault
Sources: The Law on Obligations and Contracts – Hector S. De Leon, 2011 ed.
Obligations and Contracts – Desiderio Jurado, 2012 edition
A. Villegas