ALTERNATIVE OBLIGATIONS

AND FACULTATIVE OBLIGATIONS

ALTERNATIVE OBLIGATION

ALTERNATIVE OBLIGATION
– an obligation where the
debtor is required to fulfill
ONLY ONE of the several
prestations to extinguish
the obligation.
ALTERNATIVE OBLIGATIONS

ALTERNATIVE –
bound by different
prestations but
only one is due.
RIGHT OF CHOICE IN ALTERNATIVE
OBLIGATIONS
As a general rule the right of
choice belongs to debtor,
unless:
1. when it is expressly 
granted to the creditor 
2. when it is expressly granted
to a third person
LIMITATION AS TO THE RIGHT OF
CHOICE
1. impossible prestations
2. unlawful prestations
3. those which could not have
been the object of the obligation

4. only one prestation practicabl
e  (Art.1202) (De Leon, 2003)
 WHEN CHOICE SHALL PRODUCE
EFFECT

Art. 1201: Choice shall produce no effect e
xcept from the time it has been
communicated. 
The effect of the notice is to limit the
obligation of the object or prestation
selected. Notice of selection or choice can
be oral, in writing, tacit or any other
equivocal means provided it is sufficient
to make the other party know that the
selection has been made.
 EXAMPLE
X owe Y 10K. They agreed that
X can give 10K cash, a
samsung phone or X to repair
the car of Y.
The delivery of any one of
them, 10K cash, a samsung
phone or X to repair the car of
Y is sufficient compliance of the
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE DEBTOR

1. If through a fortuitous event all were

lost, debtor cannot be held liable for
damages.
2. If 1 or more but not all of the things
are lost or one or some but not all of
the prestations cannot be performed
due to fortuitous event or fault of the
debtor, creditor cannot hold the debtor
liable for damages because the debtor
can still comply with his obligation
 EXAMPLE
EFFECT OF LOSS OF SOME OBJECTS

X is bound to deliver to Y, a
samsung phone, Ipad or sony
phone.
If the samsung phone is lost, X can
still select from Ipad or sony
phone.
If the Ipad was lost, x can still
comply with his obligation as he
can still deliver the sony phone.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE DEBTOR

3. If all things, except one, were lost,

the debtor must comply by
performing that which remain .

4. If all were lost by fault of the

debtor the later is liable for the value
of the last thing or service which
became impossible.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE CREDITOR

1. If 1 of the things is lost

through a fortuitous event,
the debtor shall perform the
obligation by delivering that
which the creditor should
choose from among the
remainder or that which
remains if only 1 subsists.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE CREDITOR

2. If the loss of 1 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.
 EFFECT OF LOSS OF OBJECTS OF
ALTERNATIVE OBLIGATIONS
IF THE RIGHT OF CHOICE BELONGS TO THE CREDITOR

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 1
of them, also with
indemnity for damages.
 EXAMPLE
EFFECT OF LOSS OF ALL OBJECTS
X is bound to deliver to deliver to
Y, a samsung phone, Ipad or sony
phone.
The samsung phone from Ipad or
sony phone was lost through the
fault of X.
Y can choose the price of samsung
phone, Ipad or sony phone with
indemnity for damages.
EFFECT OF LOSS OF OBJECT IF THE RIGHT OF
CHOICE BELONGS TO THE DEBTOR

FORTUITOUS EVENT DEBTOR’S FAULT

1. All Lost
1. All Lost Creditor shall have
Debtor is the
indemnify
right to
for
released damages based on
the value of the last
from the thing which
obligation. disappeared
service
or
which
becomes impossible.
EFFECT OF LOSS OF OBJECT IF THE RIGHT OF
CHOICE BELONGS TO THE DEBTOR

FORTUITOUS EVENT DEBTOR’S FAULT

2. Some 2. Some
Debtor to deliver Debtor to deliver that
which the creditor
that which he shall
shall choose from
choose from among among the remainder
the remainder. without damages
3. One remains 3. One remains
Debtor to deliver Debtor to deliver that
that which remains. which remains.
 SUMMARY OF RULES, OBLIGATIONS, &
RIGHTS OF DEBTOR IN ALTERNATIVE
OBLIGATION
1. If one of prestations lost through
fortuitous event, shall still be perform
by choosing (creditor) from the
remainder.
2. If one of prestations lost
through debtor’s fault, creditor may
claim any of remainders w/ damages.
3. If all prestations lost through debtor’s
fault, creditor choose price w/ damages.
FACULTATIVE OBLIGATION
FACULTATIVE OBLIGATION
FACULTATIVE OBLIGATION –
an obligation where the
debtor is bound to perform
ONLY ONE prestation, with a
reserved right to choose
another prestation as
SUBSTITUTE for the principal.
FACULTATIVE OBLIGATION

only one prestation

has been agreed
upon but another
may be given in
substitution.
FACULTATIVE OBLIGATION
ALTERNATIVE FACULTATIVE
a) Various things are a) Only one thing is due
due but the giving but a substitute may be
principally given to render
of one is sufficient payment/fulfillment
b) If one of prestations easy
is illegal, others may b) If principal obligations
be valid but obligation is void and there is no
remains. necessity of giving the
substitute; nullity of P
carries with it nullity of S
FACULTATIVE OBLIGATION
ALTERNATIVE FACULTATIVE

c) If it is c) If it is impossible
to give the
impossible to principal, the
give all except substitute does not
one, the last have to be given; if
it is impossible to
one must still give the substitute,
be given. the principal must
still be given.
FACULTATIVE OBLIGATION
ALTERNATIVE FACULTATIVE

d) Right to d) The right

choose of choice is
may be given
given only
either
to the
to debtor or
creditor debtor
 RULES ON LOSS/DETERIORATION OF
THE THING INTENDED AS SUBSTITUTE
IN FACULTATIVE OBLIGATION
1. If there is a loss/deterioration
of thing intended as substitute,
debtor is not liable if it is not his
fault.
But if substitution is already
made, debtor is liable for loss of
substitute when in delay,
negligence or fraud.
 EXAMPLE
LOSS/DETERIORATION OF THE THING
INTENDED AS SUBSTITUTE IN FACULTATIVE
OBLIGATION
1. Before substitution-
X is obliged to deliver an Ipad or a sony mobile
phone to Y.
If X lost the Ipad through fortuitous event, the
obligation is extinguished.
If the Ipad was lost through the fault of X, X is
liable for damages.
If the sony mobile phone was lost with or without
the fault of X. X is still liable to deliver the Ipad.
The loss of the sony mobile phone intended as a
substitute will not make X liable because the
substitution has not been made.
 EXAMPLE
LOSS/DETERIORATION OF THE THING
INTENDED AS SUBSTITUTE IN FACULTATIVE
OBLIGATION
2. After substitution-
X is obliged to deliver an Ipad or a sony
mobile phone to Y.
X communicated to Y that he will be
delivering a sony mobile phone on
October 30, 2019.
If the Ipad was lost with or without the
fault of X, he is not liable because he
already substituted it with the sony
mobile phone.
 EXAMPLE
LOSS/DETERIORATION OF THE THING
INTENDED AS SUBSTITUTE IN FACULTATIVE
OBLIGATION

if the sony mobile phone

was lost through fortuitous
event, the obligation is
extinguished.
If the sony mobile phone
was lost through the fault
of X, X is liable for
 REFERENCE
introvertandsmart.blogsport.com
academia.edu.com
RA 386 Civil code of the Philippines
The law on Obligations and Contracts
(De Leon)