MIDTERMS LAW ALTERNATIVE & FACULTATIVE OBLIGATIONS Two Types of Distributive Obligation Solidary and Joint – marami ang party: creditors and debtors Alternative - - ang marami is prestation (feudal law : a rent, tax, or due paid in kind or in services (as in return for the lord's warrant or authority for taking wood) 2 civil law : a performance of something due upon an obligation.) Maraming pwedeng gawin, lahat pwedeng gawin “Kanino ang choice” General rule: DEBTOR pero pwedeng ibigay kay Creditor or the Third Person Facultative - pwedeng magkaroon ng substitute yung dapat gawin 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. Maraming prestations pero pag ginawa / nafulfill ang isa sa mga prestations, maeextinguish na ang obligation 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. - - Two Types of Compound Obligation Conjunctive (maraming kailangan mafulfill lahat) prestattion and Since maraming obligations, di malalaman ni creditor kung ano yung ibibigay sakanya. Alam nya if ano yung pwedeng irerender/deliver pero di niya alam exactly kung saan doon. What’s important here is need icommunicate Example: cake, cookies, flowers, chocolate NO NEED approval of creditor if the choice is in favor of debtor The choice once properly made and communicated is irrevocable and cannot, therefore, be changed by either party without the consent of the other. - Simple – isa lang ang gagawin Compound - marami Ang pagpipilian na presentation ay yung legal lang The choice shall produce no effect except from the time it has been communicated. - 2 Types of Obligation as To number of Prestation Alternative (maraming prestation, pero pwedeng isa lang ang gagawin to fulfill the whole obligation) Facultative (isa lang ang prestation, pero pwede magsubstitute) ALTERNATIVE OBLIGATION - Distributive (several lang ang prestation): - Need consent, if nacommunicate na ang cake (from debtor) bawal na palitan w/o the consent of creditor If may approval ang creditor na okay lang sakanya yung cake, di need ng debtor ang consent If in favor of debtor na palitan, need consent from the creditor As to the original choice: debtor The concurrence of the creditor to the choice made by the debtor is not required. - The original choice among the prestations should be upon the debtor’s will only. The consent of the creditor is only required when there is a change about the choice of prestation. The debtor shall lose the right of choice when among the prestations whereby he is alternatively bound, only one is practicable. - - Many cases in which magiging isa nalang ang obligation Ex. Bibigyan ni debtor si creditor ng aso, pato, at manok pero namatay ang aso at pato, therefore manok nalang ang kayang ideliver ni debtor. Or if biglang nagging illegal ang pagbigay ng pato or manok bc of a disease; aso nalang ang pwedeng ideliver = PRACTICABLE If through the creditor’s acts the debtor cannot make a choice according to the terms of the obligation, the latter (debtor) may rescind the contract with damages. - - Debtor: cake, cookies, or dog – cookies and cake maluto through oven pero sinira ni creditor ang oven, di na pwedeng gawin ang cake and cookies bc of the action ni creditor Pwede pa ring ideliver ang aso pero may choice si debtor na icancel/rescind the contract dahil sa actions ni creditor - If lahat nawala bc of debtor’s action, pwede na magsue si creditor 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. - Debtor has the choice: deliver aso, pato, manok Ex. Napatay ni debtor ang aso, so may choice to deliver: manok or pato Ex. Napatay ang pato; manok nalang ang pwedeng ideliver = SIMPLE Ex. Napatay din ang manok, assumption = VALUE NG MANOK (kasi ito na ang last na need ideliver) Damages other than the value of the last thing or service may also be awarded. - Dapat main/ principal obligation for damages = basis will be the chicken 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. - - Similar sa debtor na kapag nacommunicate na ang gusting ibigay = SIMPLE OBLIGATION Ex. Creditor’s choice: obligation ni debtor is to deliver manok, pato, aso; need icommunicate ni creditor kay debtor ano ang ideliver Ex. Pinili ni creditor manok lang, debtor’s obligation is to deliver the chicken only = will become a SIMPLE OBLIGATION 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. Until then the responsibility of the debtor shall be governed by the following rules: Debtor: at fault if lahat mawala Ex. Aso, kabayo, manok ; kahit isa lang ang nadeliver ni debtor, maextinguish na ang obligation Ex. Namatay ang aso bc kasalanan ni debtor, wala pang right ang creditor to ask for damages kasi may kabayo and manok pa. After all debtor has the choice. Ex. Pati ang kabayo napatay ni debtor, may manok pa; di pa rin liable for damages 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; - Assumption: wala pang binigay na choice si creditor - Ex. Debtor: deliver manok, pato, aso then biglang nawala ang aso kasi nakidlatan (fortuitous event); manok and pato nalang ang choice ng creditor - - - - Responsibility of the debtor (if the choice is nasa kay creditor) 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; - If kasalanan ng debtor: choices and damages (value ng nawala) ang pwedeng kunin ni creditor - Pwedeng piliin ng creditor yung nawala if the debtor is at fault - The choice is na kay CREDITOR 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. - Ex. Napatay ang aso, pato, and manok bc of debtor; damages nalang ang pwedeng kunin ni creditor (any of those kung saan yung basis) If within the debtor’s choice: the basis of damages is the last thing na nawala If within the creditor’s choice: the basis of damages is any of those na nawala 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. FACULTATIVE OBLIGATION When only one prestation has been agreed upon, but the obligor may render another in substitution, the obligation is called facultative. - Isa lang ang prestation; magdeliver si debtor ng manok pero pwede magsubstitute 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 the account of his delay, negligence or fraud. - If substitute ang nawala (since substitute pa rin sya) walang mangyayari sa obligation Ex. Debtor: deliver ang aso pero pwede ang substitute to deliver a duck; if wala pang communication/substitution: the obligation of the debtor is to deliver the dog but once substitution is made sa pagcommunicate; the obligation is to deliver the duck (simple obligation) DIFFERENCE FACULTATIVE OF ALTERNATIVE FROM ALTERNATIVE: 1. several prestation are due but compliance with one is sufficient 2. the right of choice maybe given to the creditor or third party 3. the loss of one or more of the alternative through a fortuitous event does not extinguish the obligation - does not extinguish kasi may other prestation pa 4. the loss of one of the alternative through the fault of debtor does not render him liable - debtor has the choice 5. where the choice belong to the creditor the loss of one alternative through the fault debtor give rise to liability. - creditor has the choice, pwedeng magkaroon ng liability si debtor sa nawalang bagay FACULTATIVE: 1. Only one prestation is due although debtor is allowed to substitute it. 2. the right to make the substitution is given only to the debtor - the right of substitution is not given to the creditor (di pwede) - facultative: debtor 3. the loss of thing due extinguish the obligation 4. the loss of thing due through his fault (debtor) makes him liable 5. the loss of the substitute before the substitution though the fault of debtor does not render him liable. - because it is still a substitute EXAMPLES: Olga has the obligation to perform the following prestations to Henry: (1) To deliver a specific orange cat, (2) To deliver a specific horse, (3) To deliver a car with plate number TWD1234, the performance of one would extinguish Olga's liability to Henry. By default, who can choose which prestation to perform? Olga (the debtor has the choice) Olga has the obligation to perform the following prestations to Henry: (1) To deliver a specific orange cat, (2) To deliver a specific horse, (3) To deliver a car with plate number TWD1234, the performance of one would extinguish Olga's liability to Henry. If the right to choose is with Olga, the specific cat and the specific horse were lost due to Olga's fault, what would be her liability? None (walang liability kasi debtor has the choice, car nalang ang prestation) Olga has the obligation to perform the following prestations to Henry: (1) To deliver a specific orange cat, (2) To deliver a specific horse, (3) To deliver a car with plate number TWD1234, the performance of one would extinguish Olga's liability to Henry. If all the prestations were lost due to a fortuitous event, what will happen to Olga's obligation? Extinguished/No liability (as long as walang delay, negligence, or fraud) Olga has the obligation to perform the following prestations to Henry: (1) To deliver a specific orange cat, (2) To deliver a specific horse, (3) To deliver a car with plate number TWD1234, the performance of one would extinguish Olga's liability to Henry. If the right to choose is with Henry, and the specific orange cat was lost due to Olga's fault, what would be Henry's remedy? He can choose 1 for damages, or 2, or 3 Olga has the obligation to perform the following prestations to Henry: (1) To deliver a specific orange cat, (2) To deliver a specific horse, (3) To deliver a car with plate number TWD1234, the performance of one would extinguish Olga's liability to Henry. If the right to choose is with Henry and all the prestations were lost due to Olga's fault, what would be Henry's remedy? Damages from one of the prestations Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. Before substitution, the specific ring is lost through a fortuitous event, Carla's obligation is _____ Extinguished (Principal thing: specific ring ang nawala di yung substitution) Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. Before substitution, the specific ring is lost through Carla's fault, Carla's obligation is _____ Not extinguished; debtor is liable for damages (substitute yung nawala as base to the agreement) Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. Before substitution, the specific bracelet is lost through a fortuitous event, Carla's obligation is _____ Not extinguished (to deliver the specific ring) Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. Before substitution, the specific bracelet is lost through through Carla's fault, Carla's obligation is _____ Not extinguished; Carla is not liable Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. After substitution, the specific ring is lost through a fortuitous event, Carla's obligation is _____ Not extinguished (“after substitution” because the specific bracelet is to deliver) Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. After substitution, the specific ring is lost through Carla’s fault, Carla's obligation is _____ Not extinguished; Carla is not liable for damages (specific ring is not part of obligation because a substitution is already made) Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. After substitution, the specific bracelet is lost through a fortuitous event, Carla's obligation is _____ Extinguished (wala nang obligation si Carla bc of a fortuitous event) Carla is obliged to give Darla a specific ring. The parties agreed that Carla may give a specific bracelet as a substitute. After substitution, the specific bracelet is lost through Carla's fault, Carla's obligation is _____ Not extinguished; Carla is liable for damages (kasi nawala ang principal obligation: bracelet after substitution was made) QUESTIONS: 1. An obligation where only one object is due but the debtor may substitute another object. A. Alternative obligation B. Joint obligation C. Facultative obligation D. Solidary obligation 2. In alternative obligation, the right to choose the prestation belongs to A. Both. The right to choose must be mutually agreed upon by the debtor and creditor. B. debtor C. None. It should be stipulated in the contract. D. creditor 3. In Facultative obligations, if substitution has been made, and the substitute is lost due to debtor's fault, which is true? A. The debtor is liable for damages. B. The original prestation must be given. C. The debtor must give another object which is equally satisfactory. D. The obligation is extinguished. 4. An obligation where two or more objects are due but the performance of one is sufficient. A. Solidary obligation B. Facultative obligation C. Alternative obligation D. Joint obligation 5. Facultative as distinguished from alternative obligation A. Various things are due, but the giving of one is sufficient. B. If one of the prestations is illegal, the others may be valid and the obligation remains. C. The right of choice is given only to the debtor. D. It is impossible to give all except one, that last one must still be given. 6. An obligation where all of the objects (example three objects) must be performed to extinguish the obligation. A. Conjunctive B. Compound Obligation C. Simple D. Distributive obligation 7. In Facultative obligations, if substitution has been made, and the substitute is lost by a fortuitous event, which is true? A. The obligation is extinguished. B. The debtor must give another object which is equally satisfactory. C. The debtor is liable for damages. D. The original prestation must be given. 8. In alternative obligation, the right to choose the prestation CANNOT be A. exercised when only the debtor has the right B. exercised by a third person C. exercised by the creditor D. exercised when only one is practicable 9. In alternative obligation, once the notice of the election has been given to the creditor, A. the obligation becomes simple B. the obligation remains distributive C. the obligation remains alternative D. the obligation becomes facultative 10. In alternative obligation, to make the choice of the debtor effective A. the concurrence of the creditor to the choice made by the debtor is not required B. the approval of the creditor to the choice made by the debtor is required C. the approval of a third person to the choice made by the debtor is required D. the concurrence of the creditor to the choice made by the debtor is required 11. An obligation where one, two or more of the objects are due. One of the objects must be performed to extinguish the obligation. A. Solidary obligation B. Compound obligation C. Distributive obligation D. Joint obligation 12. In facultative obligation, the right of choice belongs to: A. Third person B. The creditor C. The debtor D. Both the creditor and the debtor 13. In Facultative obligations, if substitution has been made, which of the following is false? A. The loss of the original prestation is immaterial. B. The obligation is extinguished. C. The obligation ceases to be facultative. D. The obligation is converted into a simple obligation. 14. If through the creditor's acts, the debtor cannot make a choice according to the terms of the obligation, the latter A. is required to ask for damages. B. is required to rescind the contract. C. may rescind the contract. D. may annul the contract. 15. In alternative obligation, the debtor can choose A. practical obligation B. unlawful obligation C. which could not have been the object of the obligation D. impossible obligation 16. Allan obliged to give Ben a specific watch, a specific ring, or a specific bracelet. The parties agreed that Ben will have the right to choose the thing which will be given to him. Before Ben could make his choice, the watch and the ring are lost through Allan's fault, successively. What is the right of Ben? A. Ben can only choose to have the bracelet because anyway, Allan can still perform his obligation. B. Ben may choose the delivery to him of the bracelet, or the price of the watch or the price of ring plus damages. C. Ben can only choose to have delivery of the bracelet or the price of the ring which was the last item that was lost plus damages. D. Ben cannot choose the price of the watch or the price of the ring because the said objects have already been lost. 17. Allan obliged himself to deliver Ben his only 2020 MacBook but Allan may give his Xbox series Xas a substitute. Allan chooses to do substitution - deliver the Xbox Series X. The substitution has been communicated to Ben. In this case, which of the following statements is INCORRECT? A. Allan's obligation ceases to be facultative. B. Allan's obligation is converted into a simple obligation. C. The loss of the 2020 MacBook is inconsequential. D. Allan's bligation is extinguished. 18. Allan has the obligation to perform the following prestations to Ben: (1) To deliver a specific dog, (2) To deliver a specific cow, (3) To deliver a car with plate number TWD1234. The performance of one would extinguish Allan's liability to Ben. The right of choice has been expressly given to Ben. If the prestations to deliver the Allan's specific dog was lost due to Allan's fault, Ben may A. Demand the value of the most expensive prestation plus damages B. To demand the value of the thing that was lost due to Ben's fault C. Demand the value of the last thing that was not lost plus damages D. To choose among the performance of the remaining prestations 19. Allan has the obligation to perform the following prestations to Ben: (1) To deliver a specific dog, (2) To deliver a specific cow, (3) To deliver a car with plate number TWD1234. The performance of one would extinguish Allan's liability to Ben. The right of choice has been expressly given to Ben. If all the prestations were lost due to Allan's fault, Ben may A. Demand the value of any one of the things that was lost plus damages B. Demand the value of the last thing that was lost plus damages C. Demand the value of the most expensive prestation plus damages D. Cancel the obligation plus damages 20. Allan obliged himself to deliver Ben his only 2020 MacBook but Allan may give his Xbox series Xas a substitute. Allan chooses to do substitution - deliver the Xbox Series X. The substitution has been communicated to Ben. However, after the substitution was made, the Xbox Series X was destroyed by Allan's fault. In this case, which of the following statements is CORRECT? A. Allan's obligation is extinguished. B. Allan must deliver another object which is equally satisfactory. C. Allan should deliver instead the 2020 MacBook. D. Allan is liable for damages. 21. Allan is obliged to give Ben either objects No. 1 or No. 2 or No. 3 at Ben's option. Before Ben communicated his choice to Allan. Object No. 1 had been destroyed, thru Allan's fault and object No. 2 had been destroyed by a fortuitous event. Ben may A. Demand the value of object No 2 as the right of choice belongs to Ben. B. Demand either object No. 3 or the price of object No. 1 plus damages. C. Demand object No. 3 only as it is still available. D. Demand the price of object No. 1 only plus damages because it was destroyed by Allan's fault. 22. Allan is obliged to give Ben either objects No. 1 or No. 2 or No. 3 at Ben's option. Before Ben communicated his choice to Allan. Object No. 1 had been destroyed, thru Allan's fault and object No. 2 had been destroyed by a fortuitous event. Ben may A. Demand the value of object No 2 as the right of choice belongs to Ben. B. Demand either object No. 3 or the price of object No. 1 plus damages. C. Demand object No. 3 only as it is still available. D. Demand the price of object No. 1 only plus damages because it was destroyed by Allan's fault. 23. Allan obliged himself to deliver Ben his only 2020 MacBook but Allan may give his Xbox series Xas a substitute. Allan chooses to do substitution - deliver the Xbox Series X. The substitution has been communicated to Ben. However, after the substitution was made, the 2020 MacBook was destroyed by Allan's fault. In this case, which of the following statements is CORRECT? A. Allan's obligation is extinguished. B. Allan must deliver another object which is equally satisfactory. C. Allan is liable for damages. D. The loss of the 2020 MacBook is inconsequential. 24. Allan has the obligation to perform the following prestations to Ben: (1) To deliver a specific dog, (2) To deliver a specific cow, (3) To deliver a car with plate number TWD1234. The performance of one would extinguish Allan's liability to Ben. In this case, the right to choose is reserved to A Allan B. Dog C. Ben D. Cow 25. On January 15, 2020, Allan obliged himself to give Ben his only cow or his only dog or his only cat on December 25, 2020. On July 4, 2020, the cow died after giving birth to a young cow. Two months later, the cat died due to the fault of Alla. And on November 1, 2020, the dog died due to a fortuitous event. Which of the following is true? A. Ben can require Allan to replace the cat by another cat which is equally satisfactory B. Ben is entitled to the young cow having been born after the perfection of the contract C. The obligation of Allan is extinguished D. Allan is liable for the value of the cat plus damages 26. Allan is obliged to give Ben a specific ring. The parties agreed that Allan may give a specific bracelet as a substitute. Which is TRUE?* A. If the ring is lost through the debtor's fault after substitution, the debtor shall pay damages. B. If the ring is lost through a fortuitous event before substitution, the obligation is extinguished C. If the bracelet is lost through a fortuitous event before substitution, the obligation is extinguished D. If the ring is lost through a fortuitous event after substitution, the obligation is extinguished 27. Allan is obliged to give Ben, at Allan's option either Object No. 1, Object No. 2, or Object No. 3. If all objects were lost thru Allan's fault, which is correct? A. The value of any of the things lost plus damages must be given to Ben. B. The obligation is extinguished. C. The value of the first thing lost plus damages must be given to Ben. D. The value of the last thing lost plus damages must be given to Ben. 28. Allan obliged himself to deliver Ben his only 2020 MacBook but Allan may give his Xbox series Xas a substitute. Allan chooses to do substitution - deliver the Xbox Series X. The substitution has been communicated to Ben. However, after the substitution was made, the 2020 MacBook was destroyed by a fortuitous event. In this case, which of the following statements is CORRECT? A. Allan must deliver another object which is equally satisfactory.B. The loss of the 2020 MacBook is inconsequential. C. Allan's obligation is extinguished. D. Allan is liable for damages. 29. Allan has the obligation to perform the following prestations to Ben: (1) To deliver a specific dog, (2) To deliver a specific cow, (3) To deliver a car with plate number TWD1234. The performance of one would extinguish Allan's liability to Ben. The right of choice has been expressly given to Ben. If the prestations to deliver the Allan's specific dog was lost due to Allan's fault, Ben may A. To demand the value of the thing that was lost due to Allan's fault B. Demand the value of the last thing that was not lost plus damages C. Demand the value of any one of the thing plus damages D. Demand the value of the most expensive prestation plus damages 30. Which of the following statements is NOT an example of a facultative obligation? A. I will give you my piano but you may choose my LCD television set as a substitute. B. Dan is obliged to give Carl a specific ring. The parties agreed that Dan may give a specific bracelet as a substitute. C. I will mortgage my land to secure my debt which shall be payable within 90 days upon my failure to pay my debt within 30 days. D. Dan will give Carl his guitar but Dan may give his Personal Computer as a substitute. 31. Allan obliged himself to deliver Ben his only 2020 MacBook but Allan may give his Xbox series Xas a substitute. Allan chooses to do substitution - deliver the Xbox Series X. The substitution has been communicated to Ben. However, after the substitution was made, the Xbox Series X was destroyed by lightning. In this case, which of the following statements is CORRECT? A. Allan must deliver another object which is equally satisfactory. B. Allan should deliver instead the 2020 MacBook. C. Allan's obligation is extinguished. D. Allan is liable for damages.