A LT E R N AT I V E O B L I G AT I O N S

Article 1 1 9 9 to 1 2 0 6
 A person alternatively
bound by different
prestations shall completely
perform one of them.
A RT I C L E 1 1 9 9
The creditor cannot be
compelled to receive part of
one and part of the other
undertaking
 It is one wherein various
prestations are due but
the performance of one of
A LT E R N AT I V E
them is sufficient as
O B L IG A T IO N S determined by the choice
which, as a general rule,
belongs to the debtor.
 K IN D S O F O B L IG ATIO N
A C C O R D IN G TO
( P R E S TAT I O N )
S I M P L E O B L I G AT I O N
• It is one where there is only one
prestation
OBJECT
C O M P O U N D O B L I G AT I O N
• It is one where there are two or
more prestations.
• Conjunctive – there are several
prestations, and all of them are due
• Distribu ti ve – two or more of the
prestations are due
• Alternative – several prestations
are due but performance of one
is sufficient
• Facultative – only one
prestation is due but the debtor
m a y substitute another
Alice promised to deliver
the 3 0 0 sacks of rice to Kia.
(simple obligation)

E X A M PLE
Fiel obliged himself to give
his ring or his watch or
his necklace with
pendant to Julie.
(alternative obligation)
 The right of choice belongs to
the debtor, unless it ha s
been expressly granted to
the creditor.
A RT I C L E 1 2 0 0 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
 General Rule:
The right to choose belongs to
debtor.

Except:
R IG H T O F C H O IC E
The creditor has the right to
choose if it has been expressly
granted to the creditor
(Article 1205) or to a third
person by common
agreement (Article 1306).
 L IM ITATIO N S TO TH E
R IG H T OF
CHOICE

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.

The debtor has no more right of choice, when a m o n g the

prestations whereby he is alternatively bound, only one is
practicable. (Art. 1202.)

The debtor cannot choose part of one prestation and part of

another prestation. (see Art. 1199, par. 2.)
 The choice shall produce
no effect except from
A RT I C L E 1 2 0 1
the time it has been
communicated.
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 EFFECT OF
communicated is irrevocable and cannot, NOTICE
therefore, be renounced.
• 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.)
• The burden of proving that such
communication has been made is
upon him who made the choice.
PROOF AND
• The law does not require any
F O R M OF
particular form regarding
the giving of notice: orally
NOTICE
or in writing.
 The debtor shall lose the
right of choice when a m o n g
A RT I C L E 1 2 0 2 the prestations whereby
he is alternatively bound,
only one is practicable.
 If through the creditor's acts
the debtor cannot make a
choice according to the
A RT I C L E 1 2 0 3 terms of the obligation, the
latter m a y rescind the
contract with damages.
 Rescission creates the
obligation to return the
things which were the object
RESCISSION
of the contract together
with their fruits, and the
price with its interest.
The debtor is given the right to
rescind the contract and
recover d a m a g e s if through the
fault of the creditor, he cannot
make the choice according to
the terms of the obligation.
C R E D ITO R ’S
FAULT
Debtor, however, is not
bound to rescind. He m a y still
choose the available options.
 EXAMPLE

D a n borrowed from Oli Php 10,000. The

parties agreed that instead of Php 10,000, D a n
could deliver a phone, laptop, or a necklace.
If through the fault of Oli, the laptop was
destroyed, D a n m a y rescind the contract if he
wants. In case of rescission, the amount of
Php 10,000 must be returned with interest.
Oli, in turn, must pay D a n the value of the
laptop plus damages.
Instead of rescinding the contract, D a n
m a y still choose either of the phone or
necklace, with the right to recover the
value of the laptop plus damages. If D a n
still chooses the laptop, the obligation of
D a n is extinguished. Oli is not liable for
damages.
 Bryan promised to pay Ian Php
50,000. on October 15, 2021.
Instead of paying Ian P50,000,
both of them agreed to deliver a
Macbook, trail bike or an electric
guitar. O n October 10, 2021,
Bryan informed Ian that he will
PR O B L E M be delivering the electric guitar.
Ian checked out the electric
guitar which Bryan will be
delivering to the point that it got
destroyed.

What are the remedies of Bryan?

 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.
A RT I C L E 1 2 0 4 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.
D a m a g e s other than the value of the
last thing or service m a y also be
awarded.
 1. Right of choice belongs to
the debtor
A P P L IC AT IO N 2. The loss or impossibility
OF happened before the
A RT I C L E
1204 debtor made a selection.
 S o m e of the objects.
If s o m e of the objects of the obligation
have been lost or have become impossible
even through the fault of the debtor, the
latter is not liable since he h a s the right of
choice, and the obligation can still be
performed.
EFFECT OF L O S S
OR BECOMING
IMPOSSIBLE OBJECTS All of the objects..
OF
O B L I G AT I O N S 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 d a m a g e s since the
obligation can no longer be complied with.
Of course, if the cause of the loss is a
fortuitous event, the obligation is
extinguished.
 B A S I S OF INDEMNITY

01 02
Value of the last thing Value of the service
which disappeared; which last became
or impossible.

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.
 EXAMPLE

Ryan obliged himself to give Bea his ring or his watch or his necklace with
pendant on December 25, 2018.
Before the due date and even before Ryan could make a selection and
communication to Bea as to which of the three alternative prestations he
is choosing, the ring, the watch, and the necklace with the pendant, in
that order, all got lost because of Ryan’s fault.
Here, Bea has the right to demand the value of the necklace with the
pendant, the LAST thing which disappeared, plus damages.
 PROBLEM

Ryan obliged himself to give Bea his ring or his

watch or his necklace with pendant on
December 25, 2018.
Before the due date and even before Ryan could
make a selection and communication to Bea as
to which of the three alternative prestations he
is choosing, the ring and the watch were lost
through Ryan’s fault. Ryan then informed Bea
that he will be delivering the necklace with the
pendant on the due date.
The necklace with the pendant, however, was
lost due to fortuitous event before the due date.

Is Ryan then liable to B e a ?

 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
A RT I C L E 1 2 0 5 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 ma y 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 sa me rules shall be applied to obligations to do
or not to do in case one, some or all of the
prestations should become impossible
 Generally, the right of choice
belongs to the DEBTOR, unless
the debtor expressly gives
the right of choice to the
Creditor (Article 1200)

R IG H T OF
C H O IC E : All of the provisions with respect
C R E D I TO R to the debtor also applies to the
creditor when the right of
choice is granted to him. Before
the creditor makes the
selection, the debtor cannot
incur in delay.
 LOST THROUGH FORTUITOUS EVENT
Out of the choices that is required to be
delivered, by the debtor was lost
through fortuitous evert, the creditor
m a y still choose from the remaining
items which are obliged to be delivered
R U LE S IN C A S E by the debtor.
OF LOSS BEFORE
THE
C R E D ITO R H A S M A D E Example:
A CHOICE
Anna obliged to deliver to Bea, item
one, two, or three. If item one is lost
because of fortuitous event, Bea can
still choose from the remaining items,
or that which remains out of the
three of them.
 LOST THROUGH DEBTOR’S FAULT
If one of the items was lost due to
the fault of the debtor, the creditor
m a y still choose from the remaining
items, with the right to d a m a g e s
or the price of the item which was
R U LE S IN C A S E lost.
OF LOSS BEFORE
THE
C R E D ITO R H A S M A D E
A CHOICE Example:
If one of the items was lost due to
Anna’s fault, Bea m a y still choose
between the remaining items with
the right to damages, or the price of
the item which was lost with the
right to damages.
 ALL THINGS W E R E LOST THROUGH
DEBTOR’S FAULT
The creditor m a y demand
payment of the price of any of the
item which was lost with the
R U LE S IN C A S E right to damages.
OF LOSS BEFORE
THE
C R E D ITO R H A S M A D E
A CHOICE
Example:
If all of the items were lost
because of Anna’s fault, Bea can
demand the payment of the price
of any of the item, with the right
to indemnity for damages.
 ALL THINGS W E R E LOST
THROUGH FORTUITOUS EVENT
The obligation of the debtor is
extinguished if all of the
items were lost due to a
R U LE S IN C A S E fortuitous event. Article 1 1 7 4
OF LOSS BEFORE
THE will apply..
C R E D ITO R H A S M A D E
A CHOICE
Example:
If all of the items were lost due to
fortuitous event, the debtor
cannot be held liable for his
obligation is already extinguished.
 Under a Contract, Celine
promised to deliver to Ysnna
1 0 sacks of rice, a diamond
ring, or a piano. Yanna was
given the right of choice.
What is the liability of Celine
PR O B L E M in case, through her fault:
a. Item two was lost or
destroyed.
b. All of the items were lost
or destroyed.
 Article 1 2 0 5 also applies to
personal obligations (to
do/not to do). The
responsibility of the debtor
PERSONAL
O B L I G AT I O N S
for d a m a g es depends
upon whether the cause
which rendered the
obligation impossible was
due to his fault.
(Paragraph 2)
 When only one prestation has been
agreed upon, but the obligor m a y
render another in substitution, the
obligation is called facultative.
The loss or deterioration of the
thing intended as a substitute,
A RT I C L E 1 2 0 6
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.
 It is one where only one prestation
has been agreed upon, but the
obligor m a y render another in
substitution.

FA C U LTAT IV E Before substitution, the loss or

O B L I G AT I O N 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.
 Exam ple
:

FA C U LTAT IV E Janice promised to give Ruth

O B L I G AT I O N her diamond ring but Janice
could give her pair of
diamond earrings as a
substitute.
 A LT E R N AT I V E
A LTERN AT IVE O B L I G AT I O N
• Various prestations are
alternatively due, but the
performance of one is sufficient to
extinguish the obligation
• If it is impossible to give all except
one, that last one must still be
given.
• The right to choose m a y be given
either to the debtor or creditor.
• The right of choice always belong
V S . FACULTATIVE
FACULTATIVE O B L I G AT I O N
• Only one prestation is due but the
obligor m a y perform another in
substitution.
• If it is impossible to give the
principal, the substitute need not
to be given; on the contrary if the
substitute is o=impossible to
give, the principal must still be
given.
to the debtor
 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 a s a
EFFECT OF LOSS: substitute with or without the
fault of the debtor does not
BEFORE SUBSTITUTION
render him liable.
The “substitute” is not due, the
effect of the loss is merely to
extinguish the facultative character
of the obligation, not the entire
obligation.
 S H E R Y L W IL L G IV E Z E E A N
IP H O N E , IF S H E R Y L W A N TS , S H E
M AY G IV E A M A C B O O K
INSTEAD.

If the iPhone was lost through fortuitous event,

the obligation of Sheryl is extinguished. If iPhone
was lost through Sheryl’s fault, Sheryl is liable
for damages.
If MacBook is lost with or without fault of Sheryl,
Sheryl is still liable to deliver the iPhone; she is
not however liable for dam a ge s for the loss of the
MacBook, since it is not due.
 If the principal thing is lost, the
debtor is not liable whatever m a y
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
E FFE C T O F loss is due through his fault.
LO S S :
AFTER SUBSTITUTION Once the substitution is made, the
obligation is converted into a
simple one to deliver or perform
the substituted thing or prestation.
The substitution becomes
effective from the time it h a s
been communicated.
 S H E RYL W I L L G IV E Z E E A N
IPH O N E , IF S H E RY L WA N T S , S H E
M AY GIVE A
M ACBOOK IN S T E A D . S H E R Y L C H O S E
TO GIVE THE
MACBOOK TO ZEE.
If the iPhone was lost with or without the fault of
Sheryl, Sheryl is not liable for its loos since
her obligation is to deliver the MacBook.
If the MacBook was lost due to fortuitous event,
Sheryl’s obligation is extinguished.
If the MacBook was lost due to the fault of Sheryl,
Sheryl is liable for damages.
 Jayce sold his TV set to
Rocky who gave Jayce
the option to deliver
PR O B L E M instead his refrigerator.
Is Jayce liable to Rocky
in case the TV is lost
through Jayce’s fault?