TITLE III.

NATURAL OBLIGATIONS
A. Definition – Art. 1423
ARTICLE 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.

Basis of Natural Obligations

From nature of man and of things, as well as from law and reason, there arises a natural law,
which is immutable and independent of all human regulations; it is also sometimes called rational
law. This includes those rules which are neither written nor promulgated but derived from reason
and nature.

Concept of Natural Obligations

 Natural obligations are midway between civil and purely moral obligations. Civil
obligations are enforceable by action, while moral obligations rest entirely upon
conscience.
 It is distinguished from moral in that it produces some juridical effects, such as right to
retain what has been voluntarily paid by the debtor, and from the civil in that it does not
give rise to an action to compel its performance.
 It is usually termed as an obligation without a sanction, susceptible of voluntary
performance, but not through compulsion by legal means. It is a real obligation to which
the law denies an action, but which the debtor may perform voluntarily. It is patrimonial
and presupposes a prestation.
 In order that there may be a natural obligation, there must exist a juridical tie which is not
prohibited by law and which in itself could give a cause of action.
 But because of some special circumstances is actually without legal sanction or means of
enforcing compliance by invoking the intervention of court.

B. As distinguished from civil obligations- Art 1423

1) Civil obligations arise from law, contracts, quasi-contracts, delicts, andquasi-delicts (Art.
1157.), while natural obligations are based not on positive law but on equity and natural law; and

(2) Civil obligations give a right of action in courts of justice to compel their fulfillment or
performance (Art. 1156.), while natural Obligations do not grant such right of action to enforce
their performance.
C. As distinguished from moral obligations
NATURAL OBLIGATIONS MORAL OBLIGATIONS
There is a juridical tie There is none
Performance by the debtor is a legal The act is pure liberality, which springs from
fulfillment of the obligation, not necessarily an blood, affection or benevolence
act of generosity
In the domain of law, being a true obligation, Domain of morals
with a legal tie between debtor and creditor,
but which because of certain causes cannot
be enforced in court

Cases:
Villaroel v. Estrada, 71 Phil 140 (1940)
Fisher v. Robb, 69 Phil 101 (1939)

D. Conversion to civil obligation

GENERAL RULE:

Partial payment of a natural obligation does not make it civil; the part paid cannot be
recovered but the payment of the balance cannot be enforced.  applicable only to
natural obligation because of prescription or lack of formalities (nullity due to form e.g.
Art 1430) and NOT to natural obligation subject to ratification or confirmation.

• Payment by mistake is not voluntary and may be recovered. Payment is voluntary when
the debtor knew that the obligation is a natural one. One who pays a natural obligation,
believing it to be civil, does not thereby recognize the natural obligation; and there being no
civil obligation either, he can recover what he has paid. The debtor however has the
burden of proving the mistake.

1. By novation

2. By ratification

Conversion of Natural Obligations to Civil Obligations

The term fulfillment does not refer only to delivery but also performance of an act similar to
the definition of payment. The signing of a document, novation or acknowledgment of
prescribed debt has the effect of converting a natural obligation to a civil obligation. This is
because the signer renounces the defense which prevents enforcement of the obligation,
which can be thereafter the basis of a judicial action.

The promise to perform natural obligation is as effect as the performance itself and it
converts natural to civil obligation. A natural obligation is a valid cause for a civil obligation
such as debt of a deceased parent or family member.
E. Examples- Art 1424-1430
ARTICLE 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.

Effect of Extinctive Prescription

By virtue of extinctive prescription, a right or property has been lost.

For illustration, A’s debt to C has been extinguished by prescription. Yet A, knowing of the
prescription, voluntarily paid the prescribed A cannot now recover what he has paid C.
Prescribed debt may indeed give rise to new obligation.

ARTICLE 1425
When without the knowledge or against the will of the debtor, a third person pays
a debt which the obligor is not legally bound to pay because the action thereon
has prescribed, but the debtor later voluntarily reimburses the third person, the
obligor cannot recover what he has paid.

Payment by a Third Person but was Reimbursed by Debtor

A owes B P700,000. But the debt soon prescribes. Later C, against the consent of A, pays B
the P700,000. A here does not have to reimburse C because he (A) has not at all been
benefited by the transaction. However, A later voluntarily reimburses C. A can no longer
recover.

Payment with Debtor’s Consent

If payment is made with the consent of the debtor, a civil obligation arises. Refer to Article
1236 and 1237 of Civil Code:

Art. 1236. The creditor is not bound to accept payment or performance by a

third person who has no interest in the fulfillment of the obligation, unless
there is a stipulation to the contrary. Whoever pays for another may demand
from the debtor what he has paid, except that if he paid without the
knowledge or against the will of the debtor, he can recover only insofar as
the payment has been beneficial to the debtor.
Art. 1237. Whoever pays on behalf of the debtor without the knowledge or
against the will of the latter, cannot compel the creditor to subrogate him in
his rights, such as those arising from a mortgage, guaranty, or penalty.
NOTE: The current articles refers to a natural obligation only when that a third person pays for
the debtor on a prescribed debt but voluntarily reimburses such third person, the debtor
cannot recover what he has paid the third person.

ARTICLE 1426
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, after the annulment
of the contract voluntarily returns the whole thing or price received,
notwithstanding the fact that he has not benefited thereby, there is no right to
demand the thing or price thus returned.

Restitution by a Minor

After a decree of annulment of a contract, Article 1398 of the Civil Code provides that there
should be mutual restitution. When the ground for annulment however, is the incapacity of the
plaintiff, Article 1399 of the Civil Code provides the plaintiff is t bound to make restitution
except to the extent that he was benefited by such. If there was no benefit derived by the
incapacitated party, he is not legally obliged to make restitute.

However, he has a natural obligation to do so, under this article, if that he voluntarily makes
restitution, he cannot recover what he has delivered, if he is a minor over eighteen years of
age.

Illustration. A, a minor, entered into a contract with some sui juris, without consent of his
parents. In said contract, A received a car. This car was afterwards destroyed by fortuitous
event. Later when contract was annulled, A returned voluntarily the value of the car although
he had not profited or benefited a single centavo from the car. Has he now the right to
demand that the price be returned? No more.