OBLICON_NOTES_MAJSIMON2024

ALTERNATIVE OBLIGATIONS
(Articles 1204 - 1205)

RIGHT OF CHOICE BELONGS TO DEBTOR RIGHT OF CHOICE BELONGS TO CREDITOR

(Article 1204) (Article 1205)
*Rules in case of loss BEFORE the creditor has
SCENARIOS made a choice

EFFECTS OF LOSS OF OBJECTS OF OBLIGATION

If SOME of the objects of the obligation Debtor is NOT liable since he has the right of choice Debtor is NOT liable since the creditor has the right
have been lost or have become and the obligation can still be performed of choice among the remainder or that which
impossible through a fortuitous event or remains and the obligation can still be performed
through no fault of the debtor

If SOME of the objects of the obligation Debtor is NOT liable since he has the right of choice
have been lost or have become and the obligation can still be performed
impossible through the fault of the
debtor
Debtor is LIABLE; If the loss of item one occurs
through the fault of the debtor, the creditor may
claim item two or item three with a right to damages
or the price or value of item one with a right to
damages

If ALL of the objects of the obligation Debtor is NOT liable, the obligation is extinguished Debtor is NOT liable, the obligation is extinguished
have been lost or have become
impossible through a fortuitous event or
through no fault of the debtor
 OBLICON_NOTES_MAJSIMON2024

If ALL of the objects of the obligation Debtor is LIABLE for damages; the creditor shall Debtor is LIABLE for damages; the creditor shall
have been lost or have become have right to indemnity for damages since the have right to indemnity for damages since the
impossible through the fault of the obligation can no longer be complied with obligation can no longer be complied with
debtor

FACULTATIVE OBLIGATIONS
(ARTICLE 1206)

EFFECTS OF LOSS OF OBJECTS OF OBLIGATION

SCENARIOS
BEFORE SUBSTITUTION AFTER SUBSTITUTION

If the PRINCIPAL is lost through a fortuitous Debtor is NOT liable, the obligation is Debtor is NOT liable; the obligation can still be
event (no fault of the debtor) extinguished performed

If the PRINCIPAL is lost through the fault of the Debtor is LIABLE for damages Debtor is NOT liable; the obligation can still be
debtor performed

If the SUBSTITUTE is lost through fortuitous Debtor is NOT liable; the obligation can still be Debtor is NOT liable, the obligation is
event (no fault of the debtor) performed extinguished

If the SUBSTITUTE is lost through the fault of Debtor is NOT liable; the obligation can still be Debtor is LIABLE for damages
the debtor performed

REFERENCE: DE LEON & DE LEON, JR. (2019). Comments and Cases on Obligations and Contracts. Manila: REX Book Store.