NATURAL OBLIGATIONS

Art. 1423. Obligations are civil or natural. Civil obligations give a right of action to compel their performance. Natural obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof. Some natural obligations are set forth in the following articles. NATURAL OBLIGATIONS Basis: equity and natural law
There exists a universal immutable law, which is the source of all positive law, and which is no other than natural reason in so far as it governs all men.

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Obligations without a sanction, susceptible of voluntary performance, but not through compulsion by legal means Midway between civil and purely moral obligations Conditions of a natural obligation: 1. A juridical tie between two persons
The binding tie of these obligations is in the conscience of man, for under the law, they do not have the necessary efficacy to give rise to an action.

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Such tie is not given effect by law

Reasons for regulation: o The law encourages people to fulfil their moral obligations. o Because they rest upon morality and because they are recognized in some leading civil codes, natural obligations should again become part and parcel of the Philippine law.

Difference of natural, civil and moral obligations Natural Obligations Civil Obligations - Based on equity and natural - Based on positive law law - Not enforceable in a court of - Enforceable in a court of action action - There is a juridical tie between parties - Voluntary fulfilment produces legal effects

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Moral Obligations Completely outside the field of law

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No juridical tie between parties Voluntary fulfilment does not produce any legal effects

Art. 1424. When a right to sue upon a civil obligation has lapsed by extinctive prescription, the obligor who voluntarily performs the contract cannot recover what he has delivered or the value of the service he has rendered. E.g. A borrowed Php1,000.00 from B. After the debt has prescribed, A pays the total amount to B. An action to demand the return of the amount on the ground of wrong payment for having paid after the debt has prescribed will not prosper.

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When without the knowledge or against the will of the debtor. 1425. he cannot demand the return of what he has delivered or the payment of the value of the service he has rendered. after the settlement of the debts of the deceased. the payment is effective and irrevocable. the obligor cannot recover what he has paid. When.** Art. but of majority age. 1429. the payment is valid and cannot be rescinded by the payer. there shall be no right to recover the same from the obligee who has spent or consumed it in good faith. Art. after the annulment of the contract voluntarily returns the whole thing or price received. 1426. voluntarily pays a sum of money or delivers a fungible thing in fulfillment of the obligation. S a n B e d a C o l l e g e o f L a w . hence his contract is not annullable on the ground of incapacity.Art. notwithstanding the fact the he has not been benefited thereby. 1428. a person eighteen years of age is no longer a minor. Articles 1426 and 1427 are no longer applicable. Art. but the debtor later voluntarily reimburses the third person. who has entered into a contract without the consent of the parent or guardian. Note that under the law. there is no right to demand the thing or price thus returned. 1430. pays a legacy in compliance with a clause in the defective will. 2|R e e n F a b i a . When a testate or intestate heir voluntarily pays a debt of the decedent exceeding the value of the property which he received by will or by the law of intestacy from the estate of the deceased.** N. but one of the intestate heirs. a third person pays a debt which the obligor is not legally bound to pay because the action thereon has prescribed. When a will is declared void because it has not been executed in accordance with the formalities required by law. Art. When a minor between eighteen and twenty-one years of age who has entered into a contract without the consent of the parent or guardian. When a minor between eighteen and twenty-one years of age. after an action to enforce a civil obligation has failed the defendant voluntarily performs the obligation. Art. 1427.B.

either expressed or implied. intentionally or through culpable negligence. Lack of knowledge or means of knowledge of the truth as to the facts in question 2. Conduct amounting to false representation or concealment of material facts 2. and cannot be denied or disproved as against the person relying thereon.Bar which precludes a person from denying or asserting anything to the contrary of which has. Estoppel may be in pais or by deed. 1431. Art. either by acts of judicial or legislative officers or by his own deed or representation. action or inaction based thereon - 3|R e e n F a b i a . estoppel will not arise. been established as the truth. or admissions.Origin: equity . Estoppel May be done impliedly and without intention May only involve the conduct of one party Waiver Voluntary and intentional abandonment or relinquishment of a known right Involves the conduct of both parties Ratification Binding has intention - - - full - - Art. Essential elements as to the party claiming the estoppel: 1. induce another to believe certain facts to exist A type of estoppel in pais Arises when a party who has a right and opportunity to speak or act as well as duty to do so under the circumstances. Intent or at least expectation that this conduct shall be acted upon by 3. in contemplation of law. . Estoppel in pais/by conduct Essential elements as to the party being estopped: 1. of the real facts Estoppel by silence That contemplated in Article 1437 of the Civil Code. ESTOPPEL . or by his silence when he ought to speak out. the Rules of Court and special laws. Kinds of estoppel “Equitable estoppel” That which arises when one by his own acts. Reliance. actual or constructive.ESTOPPEL Art. S a n B e d a C o l l e g e o f L a w .Exception: If the act. The principles of estoppel are hereby adopted insofar as they are not in conflict with the provisions of this Code. . 1433. Through estoppel an admission or representation is rendered conclusive upon the person making it. 1432.Cannot be predicated on an illegal act Reason for inclusion in the Civil Code: Estoppel will afford solution to many questions which are not foreseen in our legislation. conduct or representation of the party sought to be estopped is due to ignorance founded on innocent mistake. in good faith upon the conduct or statements. representations. Knowledge. the Code of Commerce.Basis: moral and natural justice .

induces another to believe certain facts to ecist and such other relies on acts of such belief Estoppel by acceptance of benefits A type of estoppel in pais Accepting benefits derived from a certain act or transaction. Delay in asserting the complainant’s rights 3. S a n B e d a C o l l e g e o f L a w . or from denying any material fact asserted therein Estoppel by judgement The preclusion of a party to a case from denying the facts adjudicated by a court of competent jurisdiction.Negligence or omission to assert a right within a reasonable time.a. - A kind of technical estoppel Estoppel by deed/record Estoppel by deed .By virtue of which a pary and his privies are precluded from denying the truth of matters set forth in a record whether judicial or legislative - A type of estoppel by record As opposed to res judicata . Basis: Public policy requires peace of society. induces another that certain facts exist That contemplated in Article 1438 of the Civil Code. and the discouragement of stale claims Difference of Laches and Prescription Laches . Estoppel by laches Estoppel by record .Concerned with the effect of delay A question of inequity of permitting a claim to be enforced - Prescription Concerned with the fact of delay A question of a matter of time 4|R e e n F a b i a .This type of estoppel only bars the parties from raising any question that might have put in issue and decided in previous litigations Elements: 1. or of one whom he claims. Conduct on the part of the defendant. warranting a presumption that the party entitled to assert is has abandoned it. “stale demands”) . Lack of knowledge or notice on the part of the defendant that the complainant would assert the right 4.k. Injury or prejudice to the defendant in the event relief is accorded to the complainant Laches (a.By virtue of which a party to a deed and his privies are precluded from asserting against the other party and his privies any right or title in derogation of the deed. giving rise to the situation of which complaint is made and for which the complaint seeks a remedy 2.

Prejudice is not essential. the former cannot subsequently set up his own title as against the buyer or grantee. Applies to the sale of “after acquired property” which is allowed by the law on Sales under the Civil Code. (3) The party misled must have been unaware of the true facts. S a n B e d a C o l l e g e o f L a w . A lessee or a bailee is estopped from asserting title to the thing leased or received. . and (4) The party defrauded must have acted in accordance with the misrepresentation. and later the seller or grantor acquires title thereto.A tenant will not be heard to dispute his landlord’s title.Knowledge of true facts by the stranger prevents deception. the latter is precluded from asserting his legal title or interest therein. When in a contract between third persons concerning immovable property. A person who sells property when he did not have title to it. 1436. ESTOPPEL OF A TENANT . 5|R e e n F a b i a . 1434.One should have been otherwise there is no estoppel. cannot deny validity to the sale after he has acquired the title. . ESTOPPEL CONCERNING IMMOVABLE PROPERTY . the presumption does not apply. Art. . Heirs of Laruan (65 SCRA 605) Art. provided all these requisites are present: (1) There must be fraudulent representation or wrongful concealment of facts known to the party estopped. Art.Laches  Inequity is founded on some changes to the property or the relation of the parties Prescription Not statutory Applies in equity Not based on fixed time - Statutory Applies at law Based on fixed time Recommended Case: Heirs of Lacamen vs.On the party who is to be in misled estoppel.Exception: If the alleged tenant does not admit expressly or implicitly the existence of the lease contract. such title passes by operation of law to the buyer or grantee. 1437. so estoppel cannot apply.Prejudice is also not essential Art. When a person who is not the owner of a thing sells or alienates and delivers it. one of them is misled by a person with respect to the ownership or real right over the real estate. as against the lessor or bailor. If a person in representation of another sells or alienates a thing. 1435. .Created in a representative capacity . should have made a fraudulent representation or wrongful concealment of facts known to him. (2) The party precluded must intend that the other should act upon the facts as misrepresented.

. Court of Appeals. Estoppel is effective only as between the parties thereto or their successors in interest. al. vs. . the erroneous application and enforcement of the law by public officers does not prevent a subsequent correct application. al. The government is not estopped by mistake or error on the part of its officials or agents.Basis: acceptance and retention by one having knowledge of the facts of the benefits from a transaction which he might have rejected Art. cannot.The owner is precluded from setting up his own title to defeat the pledge of the property if he received the sum from which the pledge was constituted. et. (Cementina.Reason for the rule: Mutuality is an essential element of an estoppel. and the latter pledges it to a third person who receives the same in good faith and for value. PERSONS BOUND BY ESTOPPEL 1. vs. 1439.B. 6|R e e n F a b i a . ESTOPPEL FROM BENEFITS . made by the other to a pledgee who received the same in good faith and for value. The parties of the contract 2. set up his own title to defeat the pledge of the property. N. an estoppel must bind both parties or neither is bound. 91 Phil 922) Recommended Case: Fabie.Occurs when the owner of personal property has allowed another to assume apparent ownership of the thing for the purpose of making any transfer of it.- Acquiescence/consent of the true owner estops him from asserting any right over the property. if he received the sum for which a pledge has been constituted. 1438. One who has allowed another to assume apparent ownership of personal property for the purpose of making any transfer of it. et. Successors-in-interest (heirs and grantees) . City of Manila (10 Phil 64) Art. S a n B e d a C o l l e g e o f L a w .