Legal Definitions - alternative obligation

An alternative obligation is a legal duty or commitment where the party owing the obligation has the choice to fulfill it by performing one of several specified actions. Instead of being bound to a single course of action, the obligated party can select from a predefined set of options to discharge their responsibility. Once one of the alternatives is performed, the entire obligation is considered satisfied.

• Example 1: Business Contract for Services

  A marketing agency signs a contract with a client to promote a new product. The contract states that the agency will either "launch a social media campaign across three major platforms" OR "secure features in two prominent industry publications." The agency has the discretion to choose which of these two methods it will use to fulfill its contractual obligation. Once the agency successfully completes either the social media campaign or the publication features, its obligation under that specific clause of the contract is met.

• Example 2: Loan Repayment Agreement

  A borrower defaults on a personal loan. To avoid legal action, they reach a new agreement with the lender. This agreement stipulates that the borrower will either "repay the outstanding balance of $5,000 within 90 days" OR "transfer ownership of a specific antique watch, valued at $5,000, to the lender within 30 days." The borrower has the choice between these two distinct methods to satisfy their debt. If they choose to transfer the watch, their obligation to repay the cash is extinguished, and vice-versa.

• Example 3: Property Lease Agreement

  A commercial lease agreement includes a clause stating that if the tenant causes minor damage to the property, they must either "arrange for and pay for the professional repair of the damage within 14 days" OR "pay a pre-agreed compensation amount of $750 to the landlord." When a tenant accidentally cracks a window, they have the option to either hire a glazier to fix it or simply pay the $750. Whichever option they choose and complete, their obligation regarding that specific damage is fulfilled.