Alternative And Facultative Obligation

1.Differentiate Alternative Obligations from Facultative Obligations. Answer: Alternative Obligations is on wherein various prestations are due but the performance of one of them is sufficiently determined by choice which, as a general rule, belongs to the debtor, while is Facultative Obligations is where only one prestation has been agreed upon but the obligor may render another in substitution. a.) Number of prestations. - In the first, several prestations are due but the compliance of one is sufficient, while on the second, only one prestation is due although the debtor is allowed to substitute another; b.) Right of choice. - In the first, the right of choice may be given to the creditor or third person, while in the second, the right to make substitution is only given to the debtor. c.) Loss through fortuitous event – In the first, the loss of one or more of the alternative through a fortuitous event does not extinguish the obligation, while in the second, the loss of the thing due extinguishes the obligation; d.) Loss through the fault of the debtor. – (a) In the first, the loss of one of the alternatives through the fault of the debtor does not render him liable, while in second, the loss of the thing due through is fault makes him liable; and (b) In the first, where the choice belongs to the creditor, the loss of one alternative through the fault of the debtor gives rise to liability, while on the second, the loss of the substitute before the substitution through the fault of the debtor does not render him liable. e.) Nullity of prestation. – (a) In the first, the nullity of a prestation does invalidate the others, while in the second, the nullity of the prestation agreed upon invalidates the obligation; and (b) in the first, the debtor or creditor shall choose from among the remainder, while in the second, the debtor is not bound to choose the substitute.

2.When does not an obligation in an alternative obligation become due and demandable? Answer: It is when the choice hasn’t been communicated either by oral or writing. Hence, the obligation shall produce no effect and not yet due and demandable.

3.What is/are the consequences when the thing due in an alternative obligation is lost? Answer: If the thing is lost through fortuitous event, the debtor shall perform the obligation by delivering that which the creditor should choose from among the remainder, or that which remains only one subsists. 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 damage. 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.

4.When does not an obligation in a facultative obligation become due and demandable? Answer: Facultative obligation is not due and demandable, if there’s no substitution and the principal is lost by either fortuitous event or fault of the debtor.

5. What is/are the consequences when the thing due in a facultative obligation is lost?

Answer: If before the substitution, the principal thing is lost through fortuitous event, the obligation is extinguished. Otherwise, the debtor is liable for damages. The loss of the thing intended as a substitute with or without fault of the debtor does not render him liable. If after the substitution, if the principal thing is lost, the debtor is not liable whatever may be the cause of the loss, because is it no longer due. If the substitute is lost, the liability of the debtor depends upon whether or not the loss is due through his fault.

6. What is the consequence, if any, if a creditor delays in making the choice in an alternative obligation? Answer: If the creditor delays in making the choice in an alternative obligation, the debtor may rescind the contract with damages. This doesn’t mean that the contract is automatically rescinded. The debtor may allow the contract in force insofar as possible choice/s are involved.

7. Is there a limitation on the debtor’s right to make a choice under an alternative obligation? Answer: Yes, there’s a limitation on the debtor’s right to make a choice under alternative obligation. The debtor cannot choose prestations which are impossible, unlawful, or which could have been the object of the obligation. These prestations are void. But their presence does not invalidate the obligation if it includes other undertakings otherwise free from such defects. The debtor’s right of choice is not extinguished altogether but limited to the remaining valid prestations. The debtor has no more right of choice, when among the prestations whereby he is alternatively bound, only one is practicable. The obligation here becomes simple. The debtor cannot choose pare of one prestation and part of the another prestations.

8. What are the rights of a creditor in an alternative obligation? Answer: The creditor shall have the 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 the last became impossible, Damages other than the value of the last thing or service may also be awarded. The right to indemnity applies when the right of choice belongs to the debtor. In case of disagreement, it is incumbent upon the creditor to prove the value, or which the last thing disappeared ort which service last became impossible.

CAPSULIZED CASES Alternative and Facultative Obligations The rule on alternative obligations is governed by Article 1199 of the Civil Code, which states: 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.

"In an alternative obligation, there is more than one object, and the fulfillment of one is sufficient, determined by the choice of the debtor who generally has the right of election."32 The right of election is extinguished when the party who may exercise that option categorically and unequivocally makes his or her choice known.33 The choice of the debtor must also be communicated to the creditor who must receive notice of it since: The object of this notice is to give the creditor . . . opportunity to express his consent, or to impugn the election made by the debtor, and only after said notice shall the election take legal effect when consented by the creditor, or if impugned by the latter, when declared proper by a competent court. (Arco Pulp and Paper Co., Inc., et.al., vs. Dan T. Lim, et.al., G.R. No. 206806, June 25, 2014) In this case, petitioner Petra cannot place herself within the City of Butuan ruling. Undoubtedly, there are no supervening events that would warrant a modification of the judgment in Civil Case No. R-15973. And she did not, because she cannot, ask the court for such a modification. As just pointed out, the matter of alleged tenancy relationship between her and Fulgencio, far from being a supervening circumstance, was the central issue which had been finally resolved not only by the court a quo but by the Court of Appeals as wen in their respective judgments. (Petra Gabaya vs. Hon. Rafael T. Mendoza, et.al., G.R. No. L-53560, March 30, 1982)