What is the effect of loss or deterioration of the principal object in a facultative obligation before substitution?

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 the account of his delay, negligence or fraud.

Discussions:

In facultative obligation the debtor can give another prestation even if there is only one prestation agreed upon.

Second paragraph provides that it is logical that the substitute is the new object of the prestation which the creditor expects to obtain.

Kung  mayroong isang bagay na napagkasunduan na siyang ibabayad, ngunit ang may utang ay maaaring magbigay ng iba pa bilang kapalit, ito ay tanatawag na facultative obligation.

Ang pagkasira o ang pagbaba ng kalidad ng isang isang bagay na siyang dapat ay kapalit sa isang obligasyon na nagging kagagawan ng umutang ay hindi nya kailangan pananagutan, ngunit kung ito’y naibigay na ng nagpautang, ito ay kailangan na nyang panagutan kung hindi ay pwede siyang makasuhan base  sa kanyang  pagpapaliban, kapabayaan o panloloko

Facultative Obligation Distinguished from Alternative Obligation

Loss of Substitute

A- Before substitution

whether due to fortuitous event or fault of the debtor, does not affect the debtor’s liability to deliver the principal thing.

B-After substitution

1- due to fortuitous event-obligation is extinguished

2-due to debtors fault- debtor is obliged to pay damages.

When Substitution Effective

From the moment, the debtor communicates with creditor that he choice to performs the substitute prestation with respect to alternative obligation. The obligation being simple one and any delay, neglect or bad faith in its performance will be incurs upon the debtor.

Case Illustration:

MARTINA QUIZANA, plaintiff-appellee,

vs.

GAUDENCIO REDUGERIO and JOSEFA POSTRADO, defendants-appellants.

Facts:

The defendants –appellants executed a document containing an acknowledgement of loan from plaintiff-appellee, stated therein circumstances as follows:

Na alang-alang sa aming mahigpit na pangangailangan ay kaming magasawa ay lumapit kay Ginang Martina Quizana, balo, at naninirahan sa Hupi, Sta. Cruz, Marinduque, at kami ay umutang sa kanya ng halagang Limang Daan at Limang Pung Piso (P550.00), Salaping umiiral dito sa Filipinas na aming tinanggap na husto at walang kulang sa kanya sa condicion na ang halagang aming inutang ay ibabalik o babayaran namin sa kanya sa katapusan ng buwan ng Enero, taong 1949.

Pinagkasunduan din naming magasawa na sakaling hindi kami makabayad sa taning na panahon ay aming ipifrenda o isasangla sa kanya ang isa naming palagay na niogan sa lugar nang Cororocho, barrio ng Balogo, Municipio ng Santa Cruz, Lalawigang Marinduque.

Issue:

Whether or not the second part of the written obligation, in which the obligors agreed and promised to deliver a mortgage over the parcel of land, upon their failure to pay the debt on a date specified, is valid.

Held:

Yes, it is valid, According to Article 1206 of Obligation and Contract,  When only one prestation has been agreed upon, but the obligor may render another in substitution, the obligation is called Facultative obligation.