Alternative Obligation

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SECTION 3. - ALTERNATIVE OBLIGATIONS
An alternative obligation is 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. Right of choice, as a rule, given to debtor.

GENERAL RULE: The right to choose belongs to the debtor/ obligor Except: When the right has been expressly granted to the creditor Right of choice of debtor not absolute.
LIMITATION ON THE DEBTOR’S CHOICE
(1) The debtor cannot choose those prestations which are (a) impossible , (b) unlawful ,or (c) which could not have been the object of the obligation. (2) Only one prestation is practicable
(3) The debtor cannot choose part of one prestation and part of another prestation. (Art 1199) Communication of notice that choice has been made
* The debtor must choose and communicate his choice to the creditor. * The alternative obligation will be converted into a simple obligation * The proof and form of notice may be made by orally or in writing, expressly or implied. Effect when only one is practicable

* The debtor loses his right of choice when only one alternative prestation is practicable of performance. When debtor may rescind contract
* If the debtor could not make a choice due to the creditor’s act of making prestations impossible, debtor may RESCIND the contract with damages. Rescission creates the obligation to return the things which were the object of the contact together with their fruits, and the price with its interest. * If the debtor is being prevented to choose only a particular prestation, and there are other available, he is free to choose from them, after notifying the creditor of his decision The effects of loss or impossibility of the alternative prestation BEFORE the right of choice is exercised. * Once the debtor has communicated his choice of alternative prestation to be performed to the creditor, the obligation becomes simple * If the chosen alternative is lost without the fault of the debtor, the obligation will be extinguished. * If the chosen alternative is lost due to the fault of the debtor, the obligation will be converted into monetary consideration in the form of damages.

* Effect if one or some of the alternative prestations in the alternative obligation are lost BEFORE the debtor has communicated his choice to creditor * The consequence will really depend upon whether the right of choice was given to the debtor or to the creditor. A. When the right of choice belongs to the DEBTOR

* If the loss is due to FORTUITOUS EVENT
a) If all alternative prestation are lost, the alternative obligation extinguished.(Article 1174) b) If two or more alternative prestations remain, the debtor can still exercise his right of choice and choose from any remaining alternative prestation(Article 1200) c) If only one of alternatives remain, there is no more alternative obligation but only a simple obligation. * If loss is due to DEBTOR’s FAULT

a) If all the alternative prestation are lost, the alternative obligation is converted into monetary consideration as indemnity for damages. The basis for the computation of the amount to be paid by the debtor will be the value of the last thing or service lost plus damages. b) If two or more of alternative prestation remain, the debtor can still exercise his right of choice and choose from any of the remaining alternatives (ART 1200) c) If only one alternatives remain, there is no more alternative obligation but only simple obligation. B. When the right of choice belongs to the CREDITOR

* If the loss is due to a FORTUITOUS EVENT
The effect s are the same as where the right of choice belongs to debtor * If the loss is due to DEBTOR’S FAULT
a. If all the alternative prestations are lost, the alternative obligation is converted into monetary consideration as indemnity for damages. The basis for the computation of...
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