Legal Definitions - alternative contract

An alternative contract is a type of agreement where one party has the option to fulfill their contractual obligation by performing one of two or more specified actions. The choice of which action to perform typically rests with the party obligated to perform, unless the contract explicitly states otherwise. Once the choosing party makes their selection and communicates it, that specific performance becomes the definitive requirement under the contract.

• Example 1: Business Services

  A small business owner hires a marketing consultant. Their contract specifies that for a fixed fee, the consultant will either "design a new logo and branding guide" OR "develop and launch a three-month social media content strategy." The consultant, as the obligated party, has the discretion to choose which service to provide based on their current workload or expertise. Once they inform the business owner of their chosen service, that becomes the sole performance expected under the contract.

  This illustrates an alternative contract because the consultant has two distinct ways to fulfill their obligation, and the contract grants them the power to choose between these alternatives.

• Example 2: Goods Delivery

  A specialty food supplier enters into an agreement with a restaurant. The contract states that by the end of the month, the supplier will deliver "50 pounds of fresh wild-caught salmon" OR "75 pounds of premium dry-aged beef." The supplier makes the decision based on availability from their distributors. If the supplier notifies the restaurant that they will be delivering the salmon, the restaurant can no longer demand the beef.

  Here, the supplier has an alternative obligation: to deliver one of two specific types of goods. The contract allows the supplier to select which item to provide, making it an alternative contract.

• Example 3: Property Maintenance

  A homeowner hires a landscaper for a seasonal cleanup. The contract specifies that the landscaper will either "remove all fallen leaves and prune all shrubs" OR "power wash the driveway and patio." The landscaper, upon assessing the property, decides which task to perform to satisfy the agreement. If they choose to power wash, they are not then obligated to also remove leaves and prune shrubs.

  This scenario demonstrates an alternative contract because the landscaper has the choice between two different maintenance tasks to fulfill their commitment under the agreement.