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. (1131)

Kinds of obligation according to
subject:
They are:
1. SIMPLE OBLIGATIONS - one where there
is only one prestation.
Examples:
1. D obliged himself to deliver to C a
piano.
2. D promise to repair the car of C.

2. COMPOUND OBLIGATION one where there are
two or more prestations. It may be:
A. CONJUNCTIVE OBLIGATION one where there
are several prestations and all of them are due;
or
B. DISTRIBUTIVE OBLIGATION one where one two
or more of the prestations is due. It may be:
a. ALTERNATIVE OBLIGATION one where
several prestations are due but the
performance of one is sufficient (Art. 1199);
or
b. FACULTATIVE OBLIGATION one where only
one prestation is due but the debtor may
substitute another (Art. 1206).

Meaning of Alternative Obligation
An alternative obligation is one
wherein various prestations are due but
the performance of one of them is
sufficient as determined by the choice
which, as general rule, belongs to the
debtor. (8 Manresa 176; Art.1200)
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
obligation (1132).
Right of choice, as a rule given to
the debtor
As a general rule, the right to choose the
prestation belongs to the debtor.
By the 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 a common agreement,
(Art. 1306)

Right of Choice of Debtor not
Absolute
The right of choice of the debtor is subjected to
limitations. Thus -----
1. The debtor cannot choose those prestations
which are: (a) impossible, (b) unlawful, or (c)
which could not have been the object of the
obligation. These prestations are void. Their
presence does not validate the obligation if it
includes other undertakings otherwise free from
such defects.
In other words, under Article 1200, the debtors right
of choice is not extinguished altogether but limited
to the remaining valid prestations.

2. The debtor has no more right of choice when,
among the prestations whereby he is
alternatively bound, only one is practicable. (Art.
1202.) In this case, there is not only a limitation
but a loss of the right of choice belonging to the
debtor. The obligation becomes simple.
The right does not pass to the creditor, nor may it
be exercised by one.
Examples:
1. IMPOSSIBLE S promised to deliver B 10
sacks of rice, or a Bulova wrist watch, or soil
from Jupiter. S cannot choose to deliver
soil from Jupiter as it is physically
impossible.

2. UNLAWFUL S obliged himself to deliver B a
kilo of a dangerous drug, or a parcel of land, or
a 2 carat diamond ring, to kill. S can choose only
the parcel of land or the 2 carat diamond ring.

3. COULD NOT HAVE BEEN THE OBJECT OF THE
OBLIGATION D borrowed from C 30,000.00. It
was agreed that D would give C his horse, or
30,000.00 or his German piano. Now D has 2
horses, a race horse worth 30,000.00 and a horse
for calesa that cannot be sold for more than
5,000. D cannot choose the horse for calesa as it
could not have been the object of the
obligation.
4. ONLY ONE PRESTATION IS PRACTICABLE S
will deliver to B his horse, or his carabao, or his
refrigerator. The horse and the carabao,
were lost without the fault of S. S has no more
choice. He must deliver the refrigerator which
is the only one practicable.

3. The debtor cannot choose part of one
prestation and part of another prestation. (see
Art. 1199, par. 2.)

ART. 1201. The choice shall
produce no effect from the
time it has been
communicated. (1133)
Communication of notice that
choice has been made
1. EFFECT OF NOTICE Until the choice is made and
communicated, the obligation remains
alternative.
a. Once the notice of the election has been given
to the creditor, the obligation ceases to be
alternative and becomes simple.
b. Such choice once properly made and
communicated is irrevocable and cannot,
therefore, be changed by either party without
the consent of the other. The concurrence of
the creditor to the choice made by the debtor
is not required. (see Art. 1200.)
Where the choice has been expressly
given to the creditor, such choice shall
likewise produce legal effects upon being
communicated to the debtor. (Art. 1205,
par.1)

2. PROOF AND FORM OF NOTICE The burden
of proving that such communication has been
made is upon him who made the choice. The
law does not require any particular form
regarding the giving of notice. It may, therefore,
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. (1134)
Effect when only one prestation is
practicable
If more than one is practicable, it is
Article 1200 that will apply. The
obligation is still alternative because
the debtor has still the right of choice.
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 creditors
acts, the debtor cannot make a
choice according to the terms of
the obligation, the latter may
rescind the contract with
damages. (n)
When the debtor may
rescind the contract
Rescission creates the obligation to return the
things which were the object of the contact
together with their fruits, and the price with its
interest. (Art. 1385, par.1.)
It is the very nature of an alternative
obligation that the debtor can make his choice
without the consent of the creditor. Hence, the
right given to the debtor to rescind the contract
and recover damages if, through the creditors
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 possible.
The indemnity shall be fixed 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. (1135a)
Effects of Loss of Objects of
Obligation
Articles 1203 and 1204 apply when the right of
choice belongs to the debtor. Under Article 1205,
the creditor has right to choose.
1. SOME OF THE OBJECTS If some of the objects
of the obligation have been lot 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.
This is an exception to the general rule
established on Article 1170 regarding liability
for damages arising from negligence.

2. ALL OF THE OBJECTS If all of them have
been lost or have become impossible through
his fault, the creditor shall have the right to
indemnity for damages since the obligation can
no longer be complied with. Of course, if the
cause of the loss is 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
The indemnity shall be fixed taking as a 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.)

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.
(1136a)
When the Right of Choice belongs
to Creditor
In alternative obligations, the right of choice,
as a rule, belongs to the debtor. Nevertheless,
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
1. When a thing is lost through a fortuitous
event.
2. When a thing is lost through debtors fault.
3. When all the things are lost through debtors
fault.
4. When all the things are lost through a
fortuitous event.

Rules applicable to personal
obligations
The above rules are also applicable to
personal obligations. (par.2; see Art. 1156.)
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.

ART. 1206. When only one prestation has
been agreed upon, but the obligor my 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. (n)
Meaning of Facultative Obligation
A facultative obligation is one
where only one prestation has
been agreed upon but the obligor
may render another in substitution.

Effects of Loss
1. 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.
The reason is that the thing intended as a
substitute is not due. The effect of the loss is
merely to extinguish the facultative character of
the obligation.

2. 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.

The reason is that the thing intended as a
substitute is not due. The effect of the loss is
merely to extinguish the facultative character
of the obligation.
Alternative and Facultative
Obligations distinguished
The differences are as follows:
1. NUMBER OF PRESTATIONS In the first, several
prestations are due but compliance with one is
sufficient, while in second, only one prestation is
due although the debtor is allowed to substitute
it;
2. RIGHT OF CHOICE In the first, the right of
choice may be given to the creditor or third
person, while in the second, the right to make
the substitution is given only to the debtor;
3. LOSS THROUGH A FORTUITOUS EVENT In the first,
the loss of one or more of the alternatives through a
fortuitous event does not extinguished the obligation,
while in the second, the loss of the thing due
extinguishes the obligation; and
4. LOSS THROUGH FAULT OF DEBTOR
a. In the first, the loss of one of the alternatives
through the fault of the debtor does not render him
liable, while in the second, the loss of the thing due
through his fault makes him liable;
b. In the first, where the choice belongs to the
creditor, the loss of one alternative through the fault
of the debtor gives rise to liability, while in the second,
the loss of the substitute before the substitution
through the fault of debtor does not render him liable.