Chapter 3

Different Kinds of Obligations

SECTION 3. – Alternative Obligations

ARTICLE 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.

Kinds of Obligation according to object.

(1) Simple obligation. – one where there is only one prestation.
(2) Compound obligation. – one where there are two or more prestation.
a. Conjunctive – one where there at several prestations and all of them are due.
b. Distributive – one where two or more of the prestationsis due.
1) Alternative – one where several prestations are due but the performance of one is sufficient.
2) Facultative – one where only one prestation is due but the debtor may substitute another.

Alternative obligation – one wherein various prestations are due but the performance of one of them is
sufficient as determined by the choice which, as a general rule, belongs to the debtor.
ARTICLE 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.
Right of choice, as a rule, given to debtor.

As a general rule, the right to choose the prestation belongs to the debtor.

By the way of exception, it may be exercised by the creditor but only when expressly granted to him, or by
a third person when the right is given to him by common agreement.

Right of choice of debtor not absolute.

1. The debtor cannot choose those prestations which are (a) impossible, (b)
unlawful, or (c) which could not have been the object of obligation. These prestations are void.
The debtor’s right of choice is not extinguished altogether but limited to the remaining valid prestations.

2. The debtor has no more right of choice when, among the prestations whereby he is alternatively bound,
only one is practicable. In this case, these is not only a limitation but a loss of the right of choice belonging
to the debtor. The obligation becomes simple.

3. Debtor cannot choose part of one prestation and part of another prestation.

ARTICLE 1201. The choice shall produce no effect except from the time it has been communicated.
Communication of notice that choice has been made.

(1) Effect of notice. – until the choice is made and communicated, the obligation remains alternative.

a. Once the notice of the election has been given to the creditor, the obligation ceases to be alternative
and becomes simple.
b. Such choice once properly made and communicated is irrevocable and cannot, therefore, be changed
by either party without the consent of the other. The concurrence of the creditor to the choice made by the
debtor is not required.
(2) Proof and form of notice – the burden of proving that such communication has been made is upon him
who made the choice. The law does not require any particular form regarding the giving of notice. It may,
therefore, be made orally or in writing, expressly or impliedly.

ARTICLE 1202. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable.
Effect when only one prestation is practicable.
If only one is practicable, the obligation is converted into a simple one.

ARTICLE 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.
When debtor may rescind contract.
Rescisssion creates the obligation to return the things which were the object of the contract together with
their fruits, and the price with its interest.
The debtor may rescind the contract with damages if he could not make any choice in accordance with
the terms of the obligation, due to the creditor’s fault.

ARTICLE 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.

Effect of loss of objects of obligation

The creditor has the right to choose.
1. Some of the objects. – the loss of some of the objects through the fault of the debtor does not make
him liable since he has the right of choice and the obligation can still be performed.
2. All of the objects. – if all of them have been lost or have become impossible through his fault, the
creditor shall have the right to indemnity for damages since the obligation can no longer be complied with.
If the cause of the loss is fortuitous event, the obligation is extinguished.

Basis of indemnity.

The indemnity shall be fixed taking as a basis the value of the last thing which disappeared (obligation to
give) or that if the service which last became impossible (to do). In case of disagreement, it is incumbent
upon the creditor to prove such value or which thing last disappeared or which service last became
impossible.

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 to the debtor.
Until the responsibility of the debtor shall
be governed by the following rules:
1. If one of the things is lost through a fortuitous even, 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;
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.
When right of choice belongs to creditor. In alternative obligations, 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 to the debtor.

Rules in case of loss before creditor has made

choice.
(1) When a thing is lost through a fortuitous event. - If one of the things is lost through a fortuitous event,
the debtor shall perform the obligation by delivering that which the creditor should choose from among the
remainder, or that which remains if only one subsists;
(2) When a thing is lost through debtor’s fault. – 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) When all the things are lost through debtor’s fault. – 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.
(4) When all the things are lost through a fortuitous event. – ART.1174 shall apply. 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 due to his fault or not.

ARTICLE 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.

A facultative obligation is one where only one prestation has been agreed upon but the obligor may
render another in substitution.
Effect of loss.
(1) Before substitution. – If principal is lost through a fortuitous event, the obligation is extinguished. The
loss of the thing intended as a substitute with or without the fault of the debtor does not render him liable.
(2) After substitution. – If the principal thing is lost, the debtor is not liable whatever may be the cause of
the loss, because it is no longer due. If substitute is lost, the liability of the debtor depends upon whether
or not the loss is due to his fault.

Alternative and facultative obligations distinguished.

(1) Number of prestations.
1) Several prestations are due but compliance with one is sufficient.
2) Only one prestation is due although the debtor is allowed to substitute it.
(2) Right of choice.
1) The right of choice may be given to the creditor or third person
2) The right to make the substitution is given only to the debtor
(3) Loss through fortuitous event.
1) Loss of one or more of the alternatives does not extinguish the obligation
2) The loss of the thing due extinguishes the obligation
(4) Loss through fault of debtor.
a. 1) loss of one of the alternatives through the fault of the debtor does not render him liable.
2) loss of the thing due through his fault makes him liable.
b. 1) where the choice belongs to the creditor, the loss of one alternative through the fault of the
debtor gives rise to liability.
2) the loss of the substitute before the substitution through the fault of the debtor does not
render him liable.

Chapter 3
Different Kinds of Obligations
SECTION 4. – Joint and Solidary Obligations

ARTICLE 1207. The concurrence of two or more creditors or of two or more debtors in one and the same
obligation does not imply that each one of the former has a right to demand, or that each one of the latter
is bound to render, entire compliance with the prestation. There is a solidary liability only when the
obligation expressly so states, or when the law or the nature of the obligation requires solidarity.

ARTICLE 1208. If from the law, or the nature or the wording of the obligations to which the preceding
article refers, the contrary does not appear, the credit or debt shall be presumed to be divided into as
many equal shares as there are creditors or debtors, the credits or debts being considered distinct from
one another, subject to the Rules of Court governing the multiplicity of suits.

Kinds of obligations according to the number of parties.

(1) Individual obligation. – one where there is only one obligor or one obligee; and
(2) Collective obligation. – one where there is two or more debtors and/or two or more creditors. It may be
joint or solidary.
Joint Obligation – one where the whole obligation is to be paid or fulfilled proportionately by the different
debtors and/or is to be demanded proportionately by the different creditors.
Solidary Obligation – one where each one of the debtors is bound to render and/or each one of the
creditors has a right to demand from any of the debtors, entire compliance with the prestation.