Section 3 - Alternative and Facultative Obligation

• ART. 1199. A person alternatively bound by different prestations shall completely perform one of them. The creditor cannot be compelled to receive part of one and part of the other undertaking. (1131)
• ART. 1200. The right of choice belongs to the debtor, unless it has been expressly granted to the creditor.

     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. (1132)
• ART. 1201. The choice shall produce no effect except from the time it has been communicated. (1133)
• ART. 1203. If through the creditor’s acts the debtor cannot make a choice according to the terms of the obligation, the latter may rescind the contract with damages. (n)
• ART. 1204. 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.

   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.

   Damages other than the value of the last thing or service may also be awarded. (1135a)
• ART. 1202. The debtor shall lose the right of choice when among the prestations whereby he is alternatively bound, only one is practicable. (1134)
• ART. 1205. When the choice has been expressly given to the creditor, the obligation shall cease to be alternative from theday 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 that which remains if only one subsists;

   
• 1205 (2) (2) If the loss of one 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;

   (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 same rules shall be applied to obligations to do or not to do in case one, some or all of the prestations should become impossible. (1136a)
• 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. (n)
• • Alternative obligation-one where several prestations are due by the complete performance of one of them is sufficient to extinguish the obligation.The creditor cannot be compelled to receive part of one and part of the other undertaking.
• General Rule:

  Right to choose: debtor, unless it has been expressly granted to the creditor.

  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

  If through the creditor's acts the debtor cannot make a choice according to the terms of the obligation, the latter may rescind the contract with damages
• When obligation ceases to be alternative and becomes a simple obligation.

  1. When the debtor has communicated his choice to the creditor
  2. When among the prestations whereby the debtor is alternatively bound, only one is practicable.
  3. When the creditor was given the right to choose and he has communicated his choice to the debtor.
• Rules in case of loss of things which are alternatively the object of the obligation have been lost, or the compliance of the obligation has become impossible.

  • If the right of choice is with the debtor

  1. If only one or some was lost through fortuitous event or through the debtor's fault- the debtor may deliver any of the remainder, or that which remains if only one subsists
  2. If all are lost through fortuitous event- debtor's obligation is extinguished
  3. If all are lost through debtor's fault- the debtor shall pay the value of the last thing that was lost plus damages
• b. If the right of choice is with the creditor

  1. If only one or some was lost through fortuitous event- the debtor shall deliver that which the creditor should choose among the remainder, or that which remains if only one subsists
  2. If all are lost through fortuitous event- debtor's obligation is extinguished
  3. If only one or some are lost through the debtor's fault-the creditor may claim any of those subsisting or the price of those which were lost through the debtor's fault plus damages
  4. If all are lost through the debtor's fault- the creditor may claim the price of any of them plus damages
• Facultative obligation- When only one prestation has been agreed upon, but the obligor may render another in substitution
• Rules in case of loss of principal thing and substitute

  Before substitution

  • If principal thing is lost through fortuitous event- obligation is extinguished damages
  • If principal thing is lost due to debtor's fault-debtor shall be liable for damages
  • If substitute is lost, regardless of cause, the debtor is not liable
• Rules in case of loss of principal thing and substitute

  2. After substitution

  • If principal thing is lost, regardless of cause, the debtor is not liable
  • If substitute is lost through fortuitous event obligation is extinguished
  • If substitute is lost due to debtor's fault-debtor shall be liable for damages