In this article we present the logic MP that explicates reasoning on the basis of prioritized obligations. Although formal criteria to handle prioritized obligations have been formulated in the literature, little attention has been paid to the actual (non-monotonic) reasoning that makes use of these criteria. The dynamic proof theory of MP fills this lacuna. This article focuses on premise sets consisting of possibly conflicting prima facie obligations that have a modular order. MP allows to derive-inter alia-the actual, all-things-considered obligations from such premise sets. It is defined in the format of lexicographic adaptive logics from [34], whence a rich meta-theory is immediately available (e.g. soundness and completeness, idempote...