Alternative and Facultative obligations

Table of Contents

Article 1199 �Alternative Obligations

A person alternatively bound by different prestations shall completely perform one of them

Article 1199 �Paragraph 2

The creditor cannot be compelled to receive part of one and part of the other undertaking

Alternative Example:

Manuel is obliged to give Lyka either a car, a house, or a ring. All of which are worth 500,000 Pesos.

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Article 1200

The right of choice belongs to the debtor unless it has been expressly granted to the creditor

Article 1201

The choice shall produce no effect except from the time it has been communicated

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Article 1202 �

The debtor shall lose the right of choice when among the prestations whereby he is alternatively bound, only one is practicable

Alternative impracticable�Example:

Manuel is obliged to give Lyka either a car, a house, or a kilo of dangerous drugs. All are worth 500,000 pesos

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Article 1204

The creditor shall have a right to indemnity for damages when, through the fault of the debtor, obligation have been lost or if it has become impossible

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Article 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

When choice belongs to DEBTOR and loss is due to DEBTOR’S FAULT

• All are lost, creditor shall have a right to indemnify for damages
• Some but not all are lost: deliver that which he shall choose from among the remainder without damages
• Only one: deliver that which remains

Lost through a fortuitous event

• All are lost: debtor is released from the obligation
• Some but not all are lost: deliver that which he shall choose from among the remainder
• Only one remains: deliver that which remains

When choice belongs to CREDITOR and loss is due to DEBTOR’S FAULT:

• All are lost: creditor may claim the price/value of any of them with indemnity for damages
• Some but not all are lost or only one remains: creditor may claim any of those subsisting without a right to damages or price/value of the thing lost with right to damages

Article 1206 Facultative Obligations

When only one prestation has been agreed upon the obligor may render another in substitution

Article 1206 Paragraph 2

The loss or deterioration of the thing intended as a substitute, through the negligence of the obligor, does not render him liable

Facultative Example:

The debtor is obliged to give a car. Instead of the car, he can undertake another prestation like the painting of a mural.

Loss through fortuitous event

• The loss of the thing due extinguishes the obligation
• Before substitution principal obligation is due
• After substitution the substitute shall be the one that is due and demandable

Fault of debtor

• If the substitute is lost through the fault of the debtor, it does not affect the principal obligation and hence the obligation will not be liable.
• Once the substitution has been made, the obligor is liable for the loss of the substitute

Thank You For Listening

Submitted by:

Gabriel Manuel P Agdan

Reference: Melencio Sta Maria Obligations and Contract Book