RFBT 1 – Law on Obligations and Contracts 6

TITLE I: OBLIGATIONS (Arts. 1156-1304.) – Chapter 3.3: Alternative Obligations

CHAPTER 3: DIFFERENT KINDS OF OBLIGATIONS iii. Art. 1202. The debtor shall lose the right
Alternative Obligations of choice when among the prestations
Art. 1199. Paragraph 1. A person alternatively bound by whereby he is alternatively bound, only
different prestations shall completely perform one of them. one is practicable.
The creditor cannot be compelled to receive part of one and 2. John promises to deliver one of the items to Jake:
part of the other undertaking. a. Specific Rock from Pluto 
Kinds of Obligations According to Number of Prestation b. Specific Bag of Shabu 
Simple only one prestation c. Specific Tablet 
Obligation i. Letter a and b is physically impossible
Compound two or Conjunctive all prestation and unlawful. (Article 1200, Paragraph 2)
Obligation more Obligation must be fulfilled ii. This will automatically revert into a simple
prestation to extinguish obligation. (Article 1202)
the obligation. 3. John promises to deliver one of the items to Jake:
Alternative only one a. Specific Rock from Pluto 
Obligation prestation must b. Specific Bag of Shabu 
be fulfilled to c. Specific Bag of Marijuana 
extinguish the i. This is a VOID Obligation since the
obligation following items are impossible and
unlawful.
Art. 1200. The right of choice belongs to the debtor, unless it
Rules (Loss via Fortuitous Event)
has been expressly granted to the creditor.
General Rule: Choice of Debtor
The debtor shall have no right to choose those
1. John promises to deliver one of the items to Jake:
prestations which are impossible, unlawful or which could not
a. Specific Phone
have been the object of the obligation.
b. Specific Laptop 
Rules Regarding Alternative Obligations (Debtor)
c. Specific Tablet 
General Rule: Choice of Debtor
i. Assuming the Specific Phone got lost; this
1. John promises to deliver one of the items to Jake:
remains to be an alternative obligation.
a. Specific PC set 1
2. John promises to deliver one of the items to Jake:
b. Specific PC set 2
a. Specific Phone
c. Specific PC set 3
b. Specific Laptop
i. In alternative obligation, giving or fulfilling
c. Specific Tablet 
either a, b, or c will extinguish this
i. Assuming two items got lost (Specific
alternative obligation. (Article 1199,
Phone and Specific Laptop), this will
Paragraph 2)
automatically revert into a simple
Art. 1201. The choice shall produce no effect except from the obligation. (Article 1202)
time it has been communicated. 3. John promises to deliver one of the items to Jake:
2. John promises to deliver one of the items to Jake: a. Specific Phone
a. Specific Phone b. Specific Laptop
b. Specific Laptop c. Specific Tablet
c. Specific Tablet i. Assuming all items got lost due to a
i. An alternative obligation will remain an fortuitous event, the obligation is simply
alternative obligation unless the choice extinguished.
was not yet communicated. (Article 1201) Art. 1203. If through the creditor’s acts the debtor cannot
ii. John (debtor) has the right of choice what make a choice according to the terms of the obligation, the
to deliver. latter may rescind the contract with damages.
iii. In case John chose the Laptop
Rules (Loss via Debtor’s Fault)
(prestation) to be delivered, this
General Rule: Choice of Debtor
alternative obligation will become a simple
1. John promises to deliver one of the items to Jake:
obligation.
a. Specific Phone
Rules (Impossibility/Illegality of Prestation)
General Rule: Choice of Debtor b. Specific Laptop 
1. John promises to deliver one of the items to Jake: c. Specific Tablet 
a. Specific Rock from Pluto  i. Assuming the Specific Phone got lost; this
remains to be an alternative obligation.
b. Specific Laptop 
2. John promises to deliver one of the items to Jake:
c. Specific Tablet 
a. Specific Phone
i. Letter a is physically impossible. (Article
b. Specific Laptop
1200, Paragraph 2)
c. Specific Tablet 
ii. Letters b and c remains to be alternative
i. Assuming two items got lost (Specific
obligation unless John communicated his
Phone and Specific Laptop), this will
choice between the two items. (Article
automatically revert into a simple
1201)
obligation. (Article 1202)
 RFBT 1 – Law on Obligations and Contracts 7
TITLE I: OBLIGATIONS (Arts. 1156-1304.) – Chapter 3.3: Alternative Obligations

Art. 1204. The creditor shall have a right to indemnity for a. Specific Rock from Pluto
damages when, through the fault of the debtor, all the things b. Specific Bag of Shabu
which are alternatively the object of the obligation have been c. Specific Bag of Marijuana
lost, or the compliance of the obligation has become i. This is a VOID Obligation since the
impossible. following items are impossible and
The indemnity shall be fixed taking as a basis the unlawful.
value of the last thing which disappeared, or that of the Rules (Loss via Fortuitous Event)
service which last became impossible. General Rule: Choice of Creditor
Damages other than the value of the last thing or service 1. John promises to deliver one of the items to Jake:
may also be awarded. a. Specific Phone
3. John promises to deliver one of the items to Jake: b. Specific Laptop
a. Specific Phone c. Specific Tablet
b. Specific Laptop i. Assuming the Specific Phone got lost; this
c. Specific Tablet remains to be an alternative obligation
i. Assuming all items got lost due to 2. John promises to deliver one of the items to Jake:
debtor’s fault, the debtor is obliged to a. Specific Phone
pay the value of the last thing lost plus b. Specific Laptop
damages. (Article 1204) c. Specific Tablet 
i. Assuming two items got lost (Specific
Art. 1205. When the choice has been expressly given to the
Phone and Specific Laptop), this will
creditor, the obligation shall cease to be alternative from the
automatically revert into a simple
day when the selection has been communicated to the debtor.
obligation. (Article 1202)
Until then the responsibility of the debtor shall be governed by
3. John promises to deliver one of the items to Jake:
the following rules:
a. Specific Phone
(1) If one of the things is lost through a fortuitous
b. Specific Laptop
event, he shall perform the obligation by delivering that which
c. Specific Tablet
the creditor should choose from among the remainder, or that
i. Assuming all items got lost due to a
which remains if only one subsists;
fortuitous event, the obligation is simply
(2) If the loss of one of the things occurs through the
extinguished.
fault of the debtor, the creditor may claim any of those
Rules (Loss via Creditor’s Fault)
subsisting, or the price of that which, through the fault of the
General Rule: Choice of Creditor
former, has disappeared, with a right to damages;
1. John promises to deliver one of the items to Jake:
(3) If all the things are lost through the fault of the
a. Specific Phone
debtor, the choice by the creditor shall fall upon the price of
any one of them, also with indemnity for damages. b. Specific Laptop 
The same rules shall be applied to obligations to do c. Specific Tablet 
or not to do in case one, some or all of the prestations should i. Assuming the Specific Phone got lost;
become impossible. this remains to be an alternative
obligation.
Rules Regarding Alternative Obligations (Creditor)
2. John promises to deliver one of the items to Jake:
General Rule: Choice of Creditor
a. Specific Phone
1. John promises to deliver one of the items to Jake:
b. Specific Laptop
a. Specific Rock from Pluto
c. Specific Tablet
b. Specific Laptop
i. Assuming two items got lost (Specific
c. Specific Tablet
Phone and Specific Laptop), this remains
Rules (Impossibility/Illegality of Prestation)
to be an alternative obligation.
General Rule: Choice of Creditor
ii. In this case, the creditor can still choose
1. John promises to deliver one of the items to Jake:
the items lost due to fortuitous event +
a. Specific Rock from Pluto
damages for the loss of 2 items.
b. Specific Laptop
a. Value of Phone + Damages
c. Specific Tablet
b. Value of Laptop + Damages
i. Since letter a is physically impossible
c. Specific Tablet
(Article 1200, Paragraph 2),
3. John promises to deliver one of the items to Jake:
ii. This would remain to be an alternative
a. Specific Phone
obligation
b. Specific Laptop
2. John promises to deliver one of the items to Jake:
c. Specific Tablet
a. Specific Rock from Pluto
i. Assuming all items got lost, this remains
b. Specific Bag of Shabu
to be an alternative obligation.
c. Specific Tablet
ii. In this case, the creditor can still choose
i. Letter a and b is physically impossible
the items lost due to fortuitous event +
and unlawful. (Article 1200, Paragraph 2)
damages.
ii. This will automatically revert into a simple
a. Value of Phone + Damages
obligation. (Article 1202)
b. Value of Laptop + Damages
3. John promises to deliver one of the items to Jake:
c. Value of Tablet + Damages
 RFBT 1 – Law on Obligations and Contracts 8
TITLE I: OBLIGATIONS (Arts. 1156-1304.) – Chapter 3.3: Alternative Obligations

Facultative Obligations
Art. 1206. When only one prestation has been agreed upon,
but the obligor may 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.
 Facultative Obligation: An obligation with only one
prestation but the debtor may render another in
substitution.
Loss or Deterioration of Prestation & Substitute
 Example: John promises to deliver a specific laptop
to Jake and also stipulated that he may deliver a
specific tablet as a substitute.
o Identify if substitution was already made. =
No
o Identify the prestation and the substitute.
 Active Prestation/Principal Object:
Specific Laptop
 Active Prestation/Substitute after
substitution: Specific Tablet
1. If loss/deterioration of the prestation (principal object)
happened before substitution, debtor is liable if he is
the cause of loss/deterioration.
2. If loss/deterioration of the prestation (principal object)
happened after substitution, debtor is not liable even
if he is the cause of loss/deterioration.
3. If loss/deterioration of the substitute happened before
substitution, debtor is not liable even if he is the
cause of loss/deterioration
4. If loss/deterioration of the substitute happened after
substitution, debtor is liable if he is the cause of
loss/deterioration.
Alternative vs. Facultative
Alternative Obligations Facultative Obligations
Two or more prestation Only one prestation
Debtor or the creditor may Only debtor has the right of
have the right of choice substitution
The illegality/impossibility of The illegality/impossibility of
one prestation does not the prestation invalidates the
invalidate the whole whole obligation even if the
obligation as long as there substitute is valid.
are remaining valid
prestation.