Article 1206

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 debtor, 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.

Kapag iisang bagay lamang ang napagkasunduan ngunit ang may utang ay maaring magbigay ng ibang bagay bilang kapalit ng pagkakautang, ang obligasyong ito ay tinatawag na facultative.

Ang pagkawala o pagkasira ng bagay na inilaan bilang kapalit, sa pamamagitan ng kapabayaan ng may utang, ay hindi nagbibigay sa kanya ng pananagutan. Ngunit kapag ang pagpapalit ay ginawa, ang obligor ay mananagot para sa pagkawala ng kapalit ng dahil sa kanyang pagkaantala, kapabayaan o pandaraya.

Facultative obligation provides for the possibility of a substitute.

Two components of a faculatative obligation:

1. the object or prestation of the obligation

2. the substitute of the object or prestation

I will give you my piano, but I may give my LCD Television set as a substitute.

Distinctions between alternative and facultative obligation

I. With respect to characteristics:

A. Alternative – various things due but the complete payment of one of them is sufficient

B. Facultative- only one thing is due, and that it is that to which the obligation refers with the peculiarity, but the debtor has the power to fulfill the obligation by giving or rendering something else.

II. As to consequence

A. the loss of one produces, or at least may produce, a deleterious influence on the obligation

B. the loss of that thing which may be substituted does not affect the juridical relation.

III. Regarding choice:

A. election or right to choose may be granted not only to the debtor but also to the creditor

B. the choice to substitute another prestation lies only with the debtor

if the principal thing is lost through a 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 the fault of the debtor does not render him liable. – reason: thing intended as a substitute is not due; effect of loss is merely to extinguish facultative character of the obligation

Example: Kristia will give Ryan a car or if Krista wants, a laptop. 

Before Substitution

(a) the car is lost during a fortuitous event the oligation of Kristia is extinguished. (Art1174)

b) the car is lost through the fault of Kristia – Kristia is liable for damages (Art 1170)

(c.) the laptop is lost with or without fault of Kristia – Kristia is still liable to deliver the car (Art1165) ; she is not liable for damage for the loss of the laptop as it is not due.

After Substitution- If the principal thing is lost, the debtor is not liable, whatever maybe the cause of the loss, because it is no longer due.

Once the substitution is made, the obligation is converted into a simple one to deliver or to perform the substituted thing or prestation. The substitution becomes effective from the time it has been communicated. (Art1201)