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Article 1206

The document discusses two types of obligations: facultative and alternative. A facultative obligation allows the debtor to fulfill the obligation by delivering a substitute. There is one original prestation owed but the debtor can choose to deliver an alternative. For an alternative obligation, there are several possible prestations owed but the debtor need only fulfill one. The key differences are that a facultative obligation has one original prestation while an alternative obligation has multiple possible prestations. For an alternative, the creditor can choose which prestation is delivered if one is lost through the debtor's fault, while the debtor chooses for a facultative.

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981 views2 pages

Article 1206

The document discusses two types of obligations: facultative and alternative. A facultative obligation allows the debtor to fulfill the obligation by delivering a substitute. There is one original prestation owed but the debtor can choose to deliver an alternative. For an alternative obligation, there are several possible prestations owed but the debtor need only fulfill one. The key differences are that a facultative obligation has one original prestation while an alternative obligation has multiple possible prestations. For an alternative, the creditor can choose which prestation is delivered if one is lost through the debtor's fault, while the debtor chooses for a facultative.

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CG Witchy
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FACULTATIVE AND ALTERNATIVE OBLIGATION

OBLIGATION THAT CAN BE FULFILLED BY DELIVERING SUBSTITUTES OR


PRESTATIONS:
FACULTATIVE
ALTERNATIVE

FACULTATIVE
Source: Article 1206
definition: it is facultative when it comprehends only one object or prestation which is
due, but it may be complied with by the delivery of another object or the performance of
another prestation in substitution.

Elements:
1. there is ONLY ONE Prestation
2. the obligation to deliver or to do is due
3. the obligor may deliver or render a substitute prestation
CASE: Where the debtor executed a promissory note promising to pay his indebtedness
to the creditor at a specifiFed date and in case of failure to do so, he shall execute a
deed of mortgage over a certain property belonging to him in favor of the creditor, it was
held that the obligation is facultative. (165Quizana vs. Redugerio, 50 Off. Gaz. 2444.)

Right of choice belongs to the debtor only

Once the substitution is made, the obligation is converted into a simple one with the
substituted thing or prestation as the object of the obligation

EFFECT OF LOSS
the loss or impossibility of the object or prestation which is due without any fault of the
debtor is sufficient to extinguish the obligation
Before the substitution is made by the obligor, the loss or deterioration of the thing
intended as a substitute, through the negligence of the said obligor, does not render him
liable
Once the substitution has been made, however, the debtor shall be liable for the loss or
deterioration of the substitute on account of his delay, negligence or fraud.

ALTERNATIVE
Source: 1199
Definition: It is alternative when it comprehends several objects or prestation which are
due, but it may be complied with by the delivery or performance of only one of them.
ELEMENTS
There are several prestation
The obligation is due
Delivery of one among the several prestation will extinguish the obligation
Right of choice
Gr: right of choice belongs to the debtor except if the right of choice is expressly granted
to the creditor (art1200 p1)
Case: once the substitution is made, the obligation is converted into a simple one with
the substituted thing or prestation as the object of the obligation. (159Reyes vs.
Martinez, 55 Phil. 492.)
Limitation to the right of choice
: the debtor could not choose prestation which are impossible, unlawful and not object
of the obligation (art 1200 p2)
Debtor lose the right of choice if only one prestation is practicable

Once choice was made by the debtor and communicated to the creditor, the section
ceases to be alternative. The debtor and the creditor are bound by the selection.

EFFECT OF LOSS
If one of the things is lost through a fortuitous event, he shall perform the obligation by
delivering that which the CREDITOR MAY CHOOSE FROM THE REMAINDER
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;
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.

Rescision with damages- if the due to the creditor’s choice, debtor’s right of choice is
rendered ineffective.
Damages- through the fault of the debtor all the prestation are lost and compliance of
the obligation become impossible. The basis will be the value of the last thing which
disappeared plus damages.

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