Tittle III: Natural Obligations

(Article 1423-1430, Civil Code.)

Article 1423. Obligations are civil or Article 1424. When a right to sue upon a
natural. Civil obligations give a right of civil obligation has lapsed by extinctive
action to compel their performance. prescription, the obligor who voluntarily
Natural obligations, not being based on performs the contract cannot recover
positive law but on equity and natural law, what he has delivered or the value of the
do not grant a right of action to enforce service he has rendered.
their performance, but after voluntary
fulfi llment by the obligor, they authorize Performance after civil obligation has prescribed.
the retention of what has been delivered or By prescription (acquisitive), one acquires
rendered by reason thereof. Some natural ownership and other real rights through the lapse of time
obligations are set forth in the following in the manner and under the conditions laid down by law.
articles. In the same way, rights and actions are lost by prescription
(extinctive). (Art. 1106; see Art. 1218.)
Concept of natural obligations.
The above article defines natural obligations. Article 1425. When without the knowledge
According to the Code Commission: or against the will of the debtor, a third
“Natural obligations originated in the Roman law person pays a debt which the obligor is not
where they grew in importance in order to temper with legally bound to pay because the action
equity and justice the severity of the jus civile. In that thereon has prescribed, but the debtor
ancient system of law, there were two kinds of later voluntarily reimburses the third
obligations: the civil and the natural. The latter could not person, the obligor cannot recover what he
be enforced by a civil action but it had certain juridical has paid.
consequences.
In the old Spanish law, there were many instances Reimbursement of third person for debt that has
of natural obligations, among them being the cases of prescribed.
incapacity of one of the contracting parties, and where a If a third person pays the prescribed debt of the
contract could not be sued upon because it was not in the debtor without his knowledge or against his will, the latter
form required by law.” (Report of the Code Commission, is not legally bound to pay him. (see Art. 1236, par. 2.)
p. 56. But the debtor cannot recover what he has paid, in case he
voluntarily reimburses the third person.
Civil obligations and natural obligations
distinguished. Article 1426. When a minor between
Article 1423 gives the distinctions between civil eighteen and twentyone years of age who
obligations and natural obligations, viz.: has entered into a contract without the
(1) Civil obligations arise from law, contracts, quasi- consent of the parent or guardian, after
contracts, delicts, and quasi-delicts (Art. 1157.), the annulment of the contract voluntarily
while natural obligations are based not on returns the whole thing or price received,
positive law but on equity and natural law; and notwithstanding the fact that he has not
(2) Civil obligations give a right of action in courts been benefi ted thereby, there is no right
of justice to compel their fulfillment or to demand the thing or price thus
performance (Art. 1156.), while natural returned.
obligations do not grant such right of action to
enforce their performance. Restitution by minor after annulment of contract.
When a contract is annulled, a minor is not
Enumeration not exclusive. obliged to make any restitution except insofar as he has
Note that Article 1423 says “Some natural been benefited by the thing or price received by him. (Art.
obligations, x x x.” This indicates that the enumeration in 1399.) However, should he voluntarily return the thing or
the Code is not exclusive. Thus, if the borrower pays price received although he has not been benefited thereby,
interest agreed upon orally, the provisions on natural he cannot recover what he has returned.
obligations apply. (see Art. 1960.) Take note that this article applies only if the
Under the law, “no interest shall be due unless it minor who has entered into a contract without the consent
has been expressly stipulated in writing.” (Art. 1956; see of his parent or guardian is between 18 and 21 years of
Art. 1175.) age.1 The law considers that at such age, a minor has
already a conscious idea of what is morally just or unjust.
 Tittle III: Natural Obligations
(Article 1423-1430, Civil Code.)

Article 1427. When a minor between Payment by heir of debt exceeding value of property
eighteen and twenty-one years of age, who inherited.
has entered into a contract without the The heir is not personally liable beyond the value
consent of the parent or guardian, of the property he received from the decedent. (Art. 1311,
voluntarily pays a sum of money or par. 1.) But if he voluntarily pays the difference, the
delivers a fungible thing in fulfi llment of payment is valid and cannot be rescinded by him. An heir
the obligation, there shall be no right to has a moral duty to perform or pay obligations legally
recover the same from the obligee who has contracted by his dead relatives.
spent or consumed it in good faith.
(1160a). Article 1430. When a will is declared void
because it has not been executed in
Delivery by minor of money or fungible thing in fulfi accordance with the formalities required
llment of obligation. by law, but one of the intestate heirs, after
By the decree of annulment, the parties, as a the settlement of the debts of the deceased,
general rule, are obliged to make mutual restitution. (Art. pays a legacy in compliance with a clause
1398.) However, the oblige who has spent or consumed in the defective will, the payment is
in good faith the money or consumable2 thing voluntarily effective and irrevocable.
paid or delivered by the minor, is not bound to make
restitution. Payment of legacy after will has been declared void.
Although Article 1427 speaks of “fungible Legacy is the act of disposition by the testator in
thing,” nevertheless it may also apply to things that are separating from the inheritance for defi nite purposes,
non-consumable when they have been lost without fault things, rights, or a defi nite portion of his property. It may
of the obligee or in case of alienation by him to a third be viewed also as that same portion, or those things or
person who did not act in bad faith. The obligee shall be special rights, which the testator separates from his
liable for damages if he is guilty of fault or bad faith at the inheritance for a defi nite purpose. (6 Manresa 654.) The
time of spending or consumption. purpose of a legacy is to reward friends, servants and
Note again that this article is applicable only if others for services they have rendered, to give alms, etc.
the minor is between 18 and 21 years of age. If a will is disallowed for non-compliance with
the formalities prescribed by law (see Arts. 805, 839[1].),
Article 1428. When, after an action to the legacy made in the will would also be void. The effect
enforce a civil obligation has failed, the is the same as if the deceased had died without a will, and,
defendant voluntarily performs the therefore, the intestate heir is not legally required to pay
obligation, he cannot demand the return of the legacy. If, however, he still pays the legacy, the
what he has delivered or the payment of payment is effective and irrevocable, subject to the rights
the value of the service he has rendered. of the creditors of the deceased. Since, it was the intention
of the testator to give the legacy, it is the moral duty of
Performance after action to enforce civil obligation the heir to carry it out.
has failed.
This article contemplates a situation where a
debtor, who has failed to pay his obligation, is sued by the Article 1414. When money is paid or
creditor and instead of losing the case, he has won it. If, property delivered for an illegal purpose,
notwithstanding this fact, the debtor voluntarily performs the contract may be repudiated by one of
his obligation, he cannot demand the return of what he has the parties before the purpose has been
delivered or the payment of the value of the service he has accomplished, or before any damage has
rendered. He must be deemed to have considered it his been caused to a third person. In such case,
moral duty to fulfi ll his obligation. the courts may, if the public interest will
thus be subserved, allow the party
Article 1429. When a testate or intestate repudiating the contract to recover the
heir voluntarily pays a debt of the money or property.
decedent exceeding the value of the
property which he received by will or by Recovery where contract for an illegal purpose.
the law of intestacy from the estate of the The following are the requisites for the application of
deceased, the payment is valid and cannot this article:
be rescinded by the payer. (1) The contract is for an illegal purpose;
 Tittle III: Natural Obligations
(Article 1423-1430, Civil Code.)
(2) The contract is repudiated before the purpose has will not be permitted to resort to another
been accomplished or before any damage has transaction for the purpose of disguising the
been caused to a third person; and transfer in violation of the Constitution.
(3) The court considers that public interest will be (2) The principle of pari delicto is not applicable to
subserved by allowing recovery. a homestead which has been illegally sold within
the prohibited period of five (5) years in
violation of the homestead law. (Sec. 118, C.A.
No. 141 [Public Land Act].) The policy of the
law is to give land to a family for home and
cultivation; consequently, the law allows the
homesteader or free patent holder to reacquire
Article 1415. Where one of the parties to an the land even if it has been sold within the
illegal contract is incapable of giving prohibited period.
consent, the courts may, if the interest of
justice so demands, allow recovery of
Article 1417. When the price of any article
money or property delivered by the
or commodity is determined by statute, or
incapacitated person.
by authority of law, any person paying any
amount in excess of the maximum price
Recovery by an incapacitated person. allowed may recover such excess.
This article is another exception to the in pari
delicto rule in Articles 1411-1412. Recovery can be Recovery of amount paid in excess of ceiling price.
allowed if one of the parties is incapacitated and the A statute fixing the maximum price of any article
interest of justice so demands. or commodity is usually known as the ceiling law. It can
It is not necessary that the illegal purpose has not also be determined by authority of law, as by Executive
been accomplished or that no damage has been caused to Order of the President. Its purpose is to curb the evils of
a third person. (see Art. 1414.) profiteering or blackmarketing.

Article 1416. When the agreement is not Article 1418. When the law fixes, or
illegal per se but is merely prohibited, and authorizes the fixing of the maximum
the prohibition by the law is designed for number of hours of labor, and a contract
the protection of the plaintiff, he may, if is entered into whereby a laborer
public policy is thereby enhanced, recover undertakes to work longer than the
what he has paid or delivered. maximum thus fixed, he may demand
additional compensation for service
Recovery where contract not illegal per se.
rendered beyond the time limit.
Article 1416 is another exception to the rule that
where both parties are in pari delicto, they will be left Recovery of additional compensation for service
where they are without relief. Recovery is permitted rendered beyond time limit.
provided: Presidential Decree No. 442, as amended,
(1) The agreement is not illegal per se but is merely otherwise known as the Labor Code, sets forth that the
prohibited; normal hours of work of any employee shall not exceed
(2) The prohibition is designed for the protection of eight (8) hours a day.
the plaintiff; and The Labor Code applies to employees in all
(3) Public policy would be enhanced by allowing the establishments and undertakings, whether for profit or
plaintiff to recover what he has paid or delivered. not, but not to: (1) government employees; (2) managerial
employees; (3) fi eld personnel; (4) members of the family
Prohibited sale of land. of the employer who are dependent upon him for support;
(1) A land sold in violation of the constitutional (5) domestic helpers; (6) persons in the personal service
prohibition against the transfer of lands to aliens of another; and (7) workers who are paid by results. (see
may be recovered. The public policy to conserve Arts. 82, 83 thereof.)
lands for the Filipinos would be defeated and its
continued violation sanctioned if instead of Article 1419. When the law sets, or
setting the contract aside and ordering the authorizes the setting of a minimum wage
restoration of the property, the general rule on for laborers, and a contract is agreed upon
pari delicto would be applied. And the parties by which a laborer accepts a lower wage,
he shall be entitled to recover the
deficiency.
 Tittle III: Natural Obligations
(Article 1423-1430, Civil Code.)
This provision is based on the requisites of a valid
novation. (see comments and examples under Art. 1298.)
An illegal contract is void and inexistent and cannot,
Recovery of amount of wage less than minimum fixed. therefore, give rise to a valid contract.
If an employee or worker receives less than the minimum For example, a contract of repurchase is
wage rate, he can still recover the deficiency with legal dependent on the validity of the contract of sale. If the
interest (see Art. 128, Pres. Decree No. 442, as amended.), latter is itself void because the seller is not the owner, the
and the employer shall be criminally liable. (see Arts. 278, former is also void because it presupposes a valid contract
279, Ibid.) of sale between the same parties. One can repurchase only
what he has previously sold.
Article 1420. In case of a divisible contract,
if the illegal terms can be separated from
the legal ones, the latter may be enforced.

Effect of illegality where contract indivisible/divisible.

(1) Where the consideration is entire and single, the
contract is indivisible (or entire) so that if part of
such consideration is illegal, the whole contract is
void and unenforceable.
(2) Where the contract is divisible (or severable) that
is, the consideration is made up of several parts,
and the illegal ones can be separated from the
legal portions, without doing violence to the
intention of the parties, the latter may be
enforced. This rule, however, is subject to the
contrary intention of the parties
.
Divisible contract distinguished from divisible
obligation.
It must be noted that Article 1420 speaks of a
divisible contract and not of a divisible obligation. (see
Arts. 1225, 1183.) The test of the former is the divisibility
of its cause while the latter, its susceptibility of partial
fulfillment. The former, therefore, refers to the cause,
while the latter, to the prestation or object.

Article 1421. The defense of illegality of

contracts is not available to third persons
whose interests are not directly affected.
Persons entitled to raise defense of illegality or nullity.
In voidable (Art. 1397.) and unenforceable
contracts (Art. 1408.), third persons are not allowed to
bring an action to annul or to assail, as the case may be,
said contracts. If the contract is illegal or void, however,
even a third person may avail of the defense of illegality
or set up its illegality as long as his interest is directly
affected by the contract.

Article 1422. . A contract which is the

direct result of a previous illegal contract,
is also void and inexistent.

Void contract cannot be novated.