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Chapter 3, Section 3 Alternative Obligations (Articles 1199-1206)CHAPTER 3, SECTION 3 ALTERNATIVE

OBLIGATIONS(Articles 1193-1198)1. There are two (2) kinds of obligations according to object orprestation :(A) SIMPLE
obligation There is only one (1) prestation.D promised to deliver to C a 2010 model BMW car . only 1 prestation(B)
COMPOUND obligation There are two (2) or more prestations.Compound obligations are of two (2) kinds :(B.1)
CONJUNCTIVE obligation There are several prestations,and all of them are due.D promised to deliver to C a 2010
model BMW car and a dumptruck . 2 prestations (B.2) DISTRIBUTIVE obligation There are several prestations,but only
one or some of the prestations are due. The two (2) kindsof distributive obligations are : ALTERNATIVE There are
several prestations due to thecreditor, but the performance by the debtor of any one of theprestations is
sufficient compliance with the obligation. (Article1199)D promised to deliver to C either a BMW car, a Jaguar or
aMercedez Benz. 3 alternative prestations to choose from

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FACULTATIVE There is only one prestation due to thecreditor, but the debtor may perform another
prestation tosubstitute the original prestation. (Article 1206, par. 1)D promised to deliver to C a BMW, but D may
deliver a Jaguar asa substitute . original prestation substitute prestation2. To whom is the right
of choice given in an alternativeobligation? In other words, since there are several prestations due,who will choose
which prestation is to be performed by the debtor? As a general rule, the right to choose the alternative belongs tothe
DEBTOR. (Article 1200, par. 1) EXAMPLE A: On March 15, 2010, Gerald promisedKim that he will deliver to her
onDecember 15, 2010 either a Siamese cat,a bulldog, or a tarsier. Since the obligation does not say to whom the
right of choiceis given, the debtor Gerald has the right of choice. Gerald candecide which among the
alternative prestations he will deliver toKim on December 15, 2010. If Gerald chooses and delivers to Kim abulldog, the
obligation will now be extinguished. Kim cannot insistthat Gerald deliver the Siamese cat because the right of choice
hasnot been given to the creditor. What are the limitations on this preferential right of the debtor tochoose the
alternative prestation in an alternative obligation?(A) The creditor may exercise the right to choose the
alternativeprestation if the right is given to the creditor by express agreementof the parties. (Articles 1200, par. 1 &
1205)

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In EXAMPLE A above, Gerald and Kim may agree that Kim willbe the one to choose the alternative prestation. If
Kim informsGerald that she wants the Siamese cat, Gerald must deliver theSiamese cat on December 15, 2010. If
Gerald delivers the bulldog,the obligation will not be extinguished and Kim can still demand forthe delivery of the
Siamese cat. (B) The debtor must choose, and completely perform, only ONEalternative prestation. He cannot choose
part of one prestation andpart of another prestation. (Article 1199, par. 2)EXAMPLE B: On March 15, 2010, David
promisedSarah that he will deliver to her onDecember 15, 2010 either 1000 sacks ofdinorado rice worth
P250,000,P250,000.00 in cash, 20 kilos of shabu, amermaid from the pacific ocean, or anowner-type assembled
jeepney. David cannot deliver to Sarah 500 kilos of dinorado rice andP125,000.00 in cash. Sarah can refuse to accept
the delivery even ifthe total value of the delivery amounts to P250,000 one of thealternative prestations. David
has to choose only one of thealternative prestations, and he must compeletely perform thechosen
prestation.(C) The debtor cannot choose those prestations which areimpossible, unlawful, or which could not
have been the object of theobligation. (Article 1200, par. 2) In EXAMPLE B above, David can choose from among any
ofthe alternative prestations. However, David cannot choose todeliver 20 kilos of shabu because it is
an unlawful prestation.
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Neither can he choose to deliver to Sarah a mermaid from thepacific ocean because it is a physically
impossible prestation.(D) The choice of the alternative prestation to be performed willproduce legal effect only from
the time it is communicated to theother party. (Article 1201) The debtor must choose, and communicate his choice to
thecreditor. After the debtor has chosen the alternative prestation hewishes to perform, he must inform the creditor
which among thealternative prestations he will perform. After the debtor communicates to the creditor his choice
ofthe alternative prestation to be performed, the alternative obligationwill now be converted into a simple
obligation with only oneprestation which is due for performance on the maturity date of theobligation. In EXAMPLE
A above, Gerald informs Kim on May 30, 2010that what he will deliver to her on December 15, 2010 is the tarsier.As of
May 30, 2010, the alternative obligation becomes a simpleobligation with only one prestation which the debtor is
obliged todeliver on December 15, 2010 the delivery of the tarsier. Remember that it is not required that the
creditor give hisconsent to the choice made by the debtor. The debtors right ofchoice would be rendered useless if he
was to get the creditorsapproval of what alternative prestation to choose.(E) The debtor loses his right of
choice when only onealternative prestation is practicable of performance. (Article 1202) Assume in EXAMPLE A
above that the Siamese cat and thetarsier both died on the occasion of a tsunami on November 2, 2010.This is a case
when only one alternative prestation is left to beperformed by the debtor. The effect is the alternative obligation is

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converted into a simply obligation with only one prestation. Thedebtor Gerald will have no other choice but to deliver
to Kim theonly remaining prestation (the bulldog) on December 30, 2010.3. ARTS. 1204 & 1205. What are the effects
of the loss orimpossibility of the alternative prestations BEFORE the right ofchoice is exercised? Once the
debtor has communicated his choice of thealternative prestation to be performed to the creditor, the
obligationbecomes simple. If the chosen alternative is lost without the fault ofthe debtor, the obligation will be
extinguished (Article 1174). If thechosen alternative is lost due to the fault of the debtor, theobligation will
be converted into monetary consideration in the formof damages (Article 1170). What will be the effect then if one or
some of the alternativeprestations in the alternative obligation are lost before the debtorhas communicated his choice
to the creditor? The consequenceswill really depend upon whether the right of choice was given to thedebtor or to the
creditor.(A) When the right of choice belongs to the DEBTOR(1) If the loss is due to a FORTUITOUS EVENT(a) If all the
alternative prestations are lost, the alternativeobligation is extinguished. (Article 1174)(b) If two or more of the
alternative prestations remain,the debtor can still exercise his right of choice andchoose from any of the
remaining alternatives. (Article1200)(c) If only one of the alternatives remain, there is no morealternative obligation but
only a simple obligation. The

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ebtor has no choice but to perform the remainingprestation. (Article 1202)(2) If the loss is due to the
DEBTORS FAULT(a) If all the alternative prestations are lost, the alternativeobligation is converted into monetary
consideration asindemnity for damages. The basis for the computationof the amount to be paid by the debtor will
be thevalue of the last thing or service lost plus damages.(Article 1204, pars. 1 & 2)(b) If two or more of the
alternative prestations remain,the debtor can still exercise his right of choice andchoose from any of the
remaining alternatives. (Article1200, par. 1)NOTE: Even if the loss of the other alternatives weredue to the debtors
fault, the debtor will not be liablefor damages since he has the right of choice and theobligation can still be performed.
This is an exceptionto the general rule established in Article 1170regarding liability for damages arising from
negligence.(c) If only one of the alternatives remain, there is no morealternative obligation but only a simple obligation.
Thedebtor has no choice but to perform the remainingprestation with NO liability for damages. (Article 1202)
Illustrative example and application of the rules in Articles1204 & 1205.(B) When the right of choice belongs to the
CREDITOR(1) If the loss is due to a FORTUITOUS EVENT The effects arethe same as where the right of choice
belongs to thedebtor.
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(2) If the loss is due to the DEBTORS FAULT(a) If all the alternative prestations are lost, the alternativeobligation is
converted into monetary consideration asindemnity for damages. The basis for the computationof the amount to be
paid by the debtor will be thevalue of any of the objects chosen by the creditor(because he is given the
right of choice) plus damages.(Article 1205, par. 2[3])(b) If two or more of the alternative prestations remain,the
obligation is still alternative. The creditor has theoption to either: (b.1.) choose from among the remaining
alternatives;OR(b.2.) choose the lost object. The debtor will then beliable for the value of the lost object chosen bythe
creditor plus damages.(Article 1205, par. 2[2])NOTE 1: When the right of choice belongs to thecreditor, and
the loss is due to the debtors fault, thedebtor is liable for damages because the creditor wasdeprived of his right to
choose.NOTE 2: In all cases, there is NO communication ofthe choice made. If there was already
acommunication, there is no more alternative obligation.The above rules will no longer be applicable.4. ART. 1206. In
facultative obligations, there is only one prestation due tothe creditor, but the debtor may perform another
prestation tosubstitute the original prestation. (Article 1206, par. 1)

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In facultative obligations, the right of choice belongs ONLYto the DEBTOR (Article 1206, par. 1). Once the
substitution ismade, the obligation is converted into a simple one to deliver orperform the substituted prestation.
The substitution also becomes effective only from the timethe debtor communicates to the creditor his choice to
perform thesubstitute prestation. (Article 1201) BEFORE substitution, the debtor is not liable if
thesubstitute prestation is lost whether due to his fault or to afortituitous event. This is because what is
due before substitution isthe original prestation. If the original prestation is lost by virtue of afortuitous event, the
obligation is extinguished. If the originalprestation is lost due to the debtors fault, he will be liable
fordamages to the creditor. AFTER substitution, the debtor is not liable if the originalprestation is lost whether due to
his fault or to a fortituitous event.This is because what is due after substitution is already thesubstitute
prestation. If the substitute prestation is lost by virtue ofa fortuitous event, the obligation is extinguished. If the
substituteprestation is lost due to the debtors fault, he will be liable fordamages to the creditor.