COMMON CARRIERS IN GENERAL Art. 1732, NCC.

Common carriers are persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public. Art. 1765, NCC. The Public Service Commission may, on its own motion or on petition of any interested party, after due hearing, cancel the certificate of public convenience granted to any common carrier that repeatedly fails to comply with his or its duty to observe extraordinary diligence as prescribed in this Section. Art. 1733, NCC. Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all the circumstances of each case. Such extraordinary diligence in the vigilance over the goods is further expressed in Articles 1734, 1735, and 1746, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of the passengers is further set forth in Articles 1755 and 1756. Art. 1753, NCC. The law of the country to which the goods are to be transported shall govern the liability of the common carrier for their loss, destruction or deterioration. Art. 1766, NCC. In all matters not regulated by this Code, the rights and obligations of common carriers shall be governed by the Code of Commerce and by special laws. COMMON CARRIER OF GOODS Art. 1733, NCC. Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all the circumstances of each case. Such extraordinary diligence in vigilance over the goods is further expressed in Articles 1734, 1735 and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of the passengers is further set forth in Articles 1755 and 1756. LIABILITY FOR LOSS; PRESUMPTION OF NEGLIGENCE Art. 1734, NCC. Common carriers are responsible for the loss, destruction, or deterioration of the goods, unless the same is due to any of the following causes only:

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity; (2) Act of the public enemy in war, whether international or civil; (3) Act or omission of the shipper or owner of the goods; (4) The character of the goods or defects in the packing or in the containers; (5) Order or act competent public authority. Art. 1735, NCC. In all cases other than those mentioned in Nos. 1, 2, 3, 4 and 5 of the preceding article, if the goods are lost, destroyed or deteriorated, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as required in Article 1733. EXEMPTION FROM LIABILITY Art. 1734(1), NCC. (1) Flood, storm, earthquake, lightning, or other natural disaster or calamity; xxx xxx xxx Art. 1739. NCC. In order that the common carrier may be exempted from responsibility, the natural disaster muxt have been the proximate and only cause of the loss. However, the common carrier must exercise due diligence to prevent or minimize loss before, during and after the occurrence of flood, storm, or other natural disaster in order that the common carrier may be exempted from liability for the loss, destruction, or deterioration of the goods. The same duty is incumbent upon the common carrier in case of an act of the public enemy referred to in Article 1734, No. 2. Art. 1740, NCC. If the common carrier negligently incurs in delay in transporting the goods, a natural disaster shall not free such carrier from responsibility. (2) Act of the public enemy in war, whether international or civil; xxx Art. 1739, NCC. In order that the common carrier may be exempted from responsibility, the natural disaster must have been the proximate and only cause of the loss. However, the common carrier must exercise due diligence to

prevent or minimize loss before, during and after the occurrence of flood, storm, or other natural disaster in order that the common carrier may be exempted from liability for the loss, destruction, deterioration of the goods. The same duty is incumbent upon the common carrier in case of an act of the public enemy referred to in Article 1834, No. 2. (3) Act or omission of the shipper or owner of the goods Art. 1741, NCC. if the shipper or owner merely contributed to the loss, destruction or deterioration of the goods, the proximate cause thereof being the negligence of the common carrier, the latter shall be liable in damages, which however, shall be equitably reduced. (4) The character of the goods or defects in the packing or in the containers; Art. 1742, NCC. Even if the loss, destruction, or deterioration of the goods should be caused by the character of the goods, or the faulty nature of the packing or of the containers, the common carrier must exercise due diligence to forestall or lessen the loss. (5) Order or act of competent authority. Art. 1743, NCC. If through the order of public authority the goods are seized or destroyed, the common carrier is not responsible, provided said public authority had power to issue the order. Art. 1744(5), NCC. DURATION OF LIABILITY Art. 1736, NCC. The extraordinary responsibility of the common carrier lasts from the time the goods are unconditionally placed in the possession of, and received by the carrier for transportation until the same are delivered, actually or constructively, by the carrier to the consignee, or to the person who has a right to receive them, without prejudice to the provisions of Article 1738. Art. 1737, NCC. The common carrier's duty to observe extraordinary diligence in the vigilance over the goods remains in full force and effect even when they are temporarily unloaded or stored in transit, unless the shipper or owner has made use of the right of stoppage in transit. Art. 1738, NCC. The extraordinary liability of the common carrier

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continues to be operative even during the time the goods are stored in a warehouse of the carrier at the place of destination, until the consignee has been advised of the arrival of the goods and has reasonable opportunity thereafter to remove them or otherwise dispose of them. AGREEMENT LIMITING LIABILITY Art. 1744, NCC. A stipulation between the common carrier and the shipper or owner limiting the liability of the former for the loss, destruction, or deterioration of the goods to a degree less than extraordinary diligence shall be valid, provided it be: (1) In writing, signed by the shipper or owner; (2) Supported by a valuable consideration other than the service rendered by the common carrier; and (3) Reasonable, just and not contrary to public policy. Art. 1745, NCC. Any of the following or similar stipulations shall be considered unreasonable, unjust and contrary to public policy: (1) That the goods are transported at the risk of the owner of shipper; (2) That the common carrier will not be liable for any loss, destruction, or deterioration of the goods; (3) That the common carrier need to observe any diligence in the custody of the goods; (4) That the common carrier shall exercise a degree of diligence less than that of a good father of a family, or of a man of ordinary prudence in the vigilance over the movable transported; (5) That the common carrier shall not be responsible for the acts or omissions of his or its employees; (6) That the common carrier's liability for acts committed by thieves, or of robbers who do not act with grave or irresistible threat, violence or force, is dispensed with or diminished; (7) That the common carrier is not responsible for the loss, destruction, or deterioration of goods on account of the defective condition of the car, vehicle, ship, airplane or other equipment used in the contract of carriage. AS TO AMOUNT OF LIABILITY Art. 1749, NCC. A stipulation that the common carrier's liability is

limited to the value of the goods appearing in the bill of lading, unless the shipper or owner declares a greater value, is binding. Art. 1750, NCC. A contract fixing the sum that may be recovered by the owner or shipper for the loss, destruction, or deterioration of the goods is valid, if it is reasonable and just under the circumstances, and has been fairly and freely agreed upon. FACTORS AFFECTING AGREEMENT; PRESUMPTION OF NEGLIGENCE Art. 1746, NCC. An agreement limiting the common carrier's liability may be annulled by the shipper or owner if the common carrier refused to carry the goods unless the former agreed to such stipulation. Art. 1747, NCC. If the common carrier, without just cause, delays the transportation of the goods or changes the stipulated or usual route, the contract limiting the common carrier's liability cannot be availed of in case of the loss, destruction, or deterioration of the goods. Art. 1748, NCC. An agreement limiting the common carrier's liability for delay on account of strikes or riots is valid. Art. 1751, NCC. The fact that the common carrier has no competitor along the line or route, or a part thereof, to which the contract refers shall be taken into consideration of the question of whether or not a stipulation limiting the common carrier's liability is reasonably just and in accordance with public policy. Art. 1752, NCC. Even when there is an agreement limiting the liability of the common carrier in the vigilance over the goods, the common carrier is disputably presumed to have been negligent in case of their loss, destruction or deterioration. PASSENGER'S BAGGAGE Art. 1754, NCC. The provisions of Articles 1733 to 1753 shall apply to the passenger's baggage which is not in his personal custody or in that of his employees. As to other baggage, the rules in Articles 1998 and 2000 to 2003 concerning the responsibility of hotel-keepers shall be applicable.

or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public. Art. 1733, NCC. Common carriers from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all circumstances of each case. Such extraordinary diligence in the vigilance over the goods is further expressed in Articles 1734, 1735 and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of the passengers is further set forth in Articles 1755 and 1756. Art. 1755, NCC. A common carrier is bound to cany the passengers safely as far as human care and foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the circumstances. PRESUMPTION OF NEGLIGENCE Art. 1756, NCC. In case of death of or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as prescribed in Articles 1733 and 1755. LIMITATIONS OF LIABILITY; VALIDITY OF STIPULATIONS Art. 1757, NCC. The responsibility of a common carrier for the safety of passengers as required in Articles 1733 and 1755 cannot be dispensed with or lessened by stipulation, by the posting of notices, by statements on tickets or otherwise. Art. 1758, NCC. When a passenger is carried gratuitously, a stipulation limiting the common carrier's liability for negligence is valid, but not for willful acts or gross negligence. The reduction of fare does not justify any limitation of the common carrier's liability. RESPONSIBILITY FOR ACTS OF EMPLOYEES Art. 1759, NCC. Common carriers are liable for the death of or injuries to passengers through the negligence or willful acts of the former's employees, although such employees may have acted beyond the scope of their authority or in violation of the orders of the common carriers. The liability of the common carriers does not cease upon proof that they exercised all the diligence of a good father of a family in the

COMMON CARRIER OF PASSENGERS Art. 1732, NCC. Common carriers are persons, corporations, firms

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selection and supervision of their employees Art. 1760, NCC. The common carrier's responsibility prescribed in the preceding article cannot be eliminated or limited by stipulation, by the posting of notices, by statements on the tickets or otherwise. RESPONSIBILITY PASSENGERS FOR ACTS OF STRANGERS; CO-

damages. Art. 2201, NCC. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation, and which the parties have foreseen at the time the obligation was constituted. In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. Art. 2203, NCC. The party suffering loss or injury must exercise the diligence of a good father of a family to minimize the damages resulting from the act or omission in question. Art. 2205, NCC. Damages may be recovered. (1) For loss or impairment of earning capacity in cases of temporary or permanent personal injury; (2) For injury to the plaintiffs, business standing of commercial credit. Art. 2206, NCC. The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos, even though there may have been mitigating circumstances. In addition: (1) The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of the latter; such indemnity shall in every case be assessed and awarded by the court, unless the deceased on account of permanent physical disability not caused by the defendant, had no earning capacity at the time of his death. XXX MORAL DAMAGES Art. 2206, NCC. The amount of damages for death caused a crime of quasi-delict shall be at least three thousand pesos, even though there may be have been mitigating circumstances. In addition: XXX (3) The spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased. Art. 2216, NCC. No proof of pecuniary loss is necessary in order that moral, nominal temperate, liquidated or exemplary damages

may be adjudicated. The assessment of such damages, except liquidated ones, is left to the discretion of the court, according to the circumstances of each case. Art. 2217, NCC. Moral damages include physical suffering mental anguish, fright, serious, anxiety, besmirched reputation, wounded, feelings, moral shock, social humiliation, and similar injury. Though incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendant's wrongful act or omission. Art. 2219, NCC. Moral damages may be recovered in the following and analogous cases: (1) A criminal offense resulting in physical injuries. (2) Quasi-delict causing physical injuries; (3) Seduction, abduction, rape, or other lascivious acts; (4) Adultery or concubinage; (5) Illegal or arbitrary detention or arrest; (6) Illegal search; (7) Libel, slander or any or other form of defamation; (8) Malicious prosecution; (9) Acts mentioned in Article 309; (10) Acts and actions referred to in Articles 21, 26, 27, 28,29, 30, 32, 34, and 35. The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 of this article, may also recover moral damages. The spouse, descendants, ascendants and brothers and sisters may bring the action mentioned in No. 9 of this article, in the order named. Art. 2220, NCC. Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due. The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith.

Art. 1763, NCC. A common carrier is responsible for injuries suffered by a passenger on account of the wilful acts or negligence of other passengers or of strangers, if the common carrier's employees through the exercise of the diligence of a good father of a family could have prevented or stopped the act or omission. DUTY OF PASSENGER; NEGLIGENCE EFFECT OF CONTRIBUTORY

Art. 1761, NCC. The passenger must observe the diligence of a good father of a family to avoid injury to himself. Art. 1762, NCC. The contributory negligence of the passenger does not bar recovery of damages for his death or injuries, if the proximate cause thereof is the negligence of the common carrier, but the amount of damages shall be equitably reduced. DAMAGES RECOVERABLE FROM COMMON CARRIERS Art. 1764, NCC. Damages in cases comprised in this Section shall be awarded in accordance with the Title XVII of this book, concerning damages. Article 2206 shall also apply to the death of a passenger caused by the breach of contract by a common carrier. Art. 2197, NCC. Damages may be: (1) Actual or compensatory; (2) Moral; (3) Nominal; (4) Temperate or moderate; (5) Liquidated; or (6) Exemplary or corrective. ACTUAL OR COMPENSATORY DAMAGES Art. 2199, NCC. Except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved. Such compensation is referred to as actual or compensatory

EXEMPLARY DAMAGES Art. 2229, NCC. Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages.

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which has been violated or invaded by the defendant. Temperate or moderate damages. may be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot. reckless. Exemplary damages cannot be recovered as a matter of right. In contracts and quasi-contracts. NOMINAL. fraudulent. from the nature of the case. 4 . 2233. or malevolent manner. to be paid in case of breach thereof. Art. NCC. 2224. Art. 2226. TEMPERATE. 2221. Nominal damages are adjudicated in order that a right of the plaintiff. the court may award exemplary damages if the defendant acted in a wanton. 2232. Liquidated damages are those agreed upon by the parties to a contract. NCC. and not for the purpose of indemnifying the plaintiff for any loss suffered by him. the court will decide whether or not they should be adjudicated. which are more than nominal but less than compensatory damages. NCC. LIQUIDATED DAMAGES Art. Art. oppressive. NCC. be proved with certainty. may be vindicated or recognized.Art. NCC.

provided that at the time of ordering the change of consignee the bill of lading signed by the carrier. and with respect to the baggage. When it has for its object merchandise or any article of commerce. 2. with such other manifestations which may be considered necessary for their easy identification. he shall be liable for all the losses which the goods he transports may suffer from any other cause. if one has been issued. Article 351. be returned to him. of their weight. he must give the latter a receipt for the goods delivered. and by virtue of the exchange of this title with the thing transported. The name. without changing the place where the delivery is to be made. Article 355. and should he do so without this cause. the carrier had to take another route which produced an increase in transportation charges. if there should be any agreement on this matter. When. because of its loss or any other cause. to the schedules and regulations the application of which he requests. besides paying the sum which may have been stipulated for such case. Article 361. surname and residence of the carrier. The bills of lading. unless in the same act the claim which the parties may wish to reserve be reduced to writing. with the conditions inherent thereto always including a statement or reference to in the bill of lading which he delivers to the shipper. Article 353. the respective obligations and actions shall be considered cancelled. After the contract has been complied with. surname and residence of the shipper. The place and the time at which delivery to the consignee shall be made. may be diverse. the carrier must 5 . and if the carriage is to be made by railway. 3. The place of delivery to the carrier. who shall prepare a memorandum of the result of the investigation. or tickets in cases of transportation of passengers. and should he not do so. cannot return the bill of lading subscribed by the carrier. with a statement of their kind. Article 354. the carrier is a merchant or is habitually engaged in transportation for the public. the bill of lading which the carrier has issued shall be returned to him. The merchandise shall be transported at the risk and venture of the shipper. this receipt producing the same effects as the return of the bill of lading. the number and weight of the packages. some for persons and others for baggage. surname and residence of the person to whom or to whose order the goods are to be sent or whether they are to be delivered to the bearer of said bill. the expense occasioned by the examination and that of carefully repacking the packages shall be for the account of the carrier and in a contrary case for the account of the shipper. if the contrary has not been expressly stipulated. being exempt from all responsibility if its objections are made to appear in the bill of lading. 4. according to the general provisions established in this Code for commercial contracts. at the place indicated for receiving them. If the shipper or consignee who has to be cited does not attend. and the shipment is insisted upon. When on account of said cause of force majeure. The cost of transportation. 6. the company shall transport them. If the declaration of the shipper should be true. If there is an agreement between the shipper and the carrier as to the road over which the conveyance is to be made. the cost. in exchange for another wherein the novation of the contract appears. 7. The indemnity to be paid by the carrier in case of delay. upon receiving the goods. no exceptions being admissible other than those of falsity and material error in the drafting. Article 358. may change the consignment of the goods which he delivered to the carrier. The name. The legal evidence of the contract between the shipper and the carrier shall be the bills of lading. the carrier may not change the route. The shipper as well as the carrier of merchandise or goods may mutually demand that a bill of lading be made. the date of shipment. he shall be reimbursed for such increase upon formal proof thereof Article 360. he shall proceed with his investigation in the presence of witnesses. 2. The responsibility of the carrier shall commence from the moment he receives the merchandise. 9. In the case the consignee. In the absence of a bill of lading.CODE OF COMMERCE PROVISIONS ON TRANSPORTATION OVERLAND TITLE VII COMMERCIAL CONTRACTS FOR TRANSPORTATION OVERLAND Article 349. personally or through a person charged for purpose. If by reason of well-founded suspicion of falsity in the declaration as to the contents of a package the carrier should decide to examine it. whatever its object may be. and if the shipper does not determine the schedules. In transportation made by railroads or other enterprises subject to regulation rate and time schedules. Article 356. A contract of transportation by land or waterways of any kind shall be considered commercial: 1. Article 359. stating: 1. unless it be by reason of force majeure. Article 357. but all of them shall bear the name of the carrier. The expenses which this change of consignment occasions shall be for the account of the shipper. Article 352. The shipper. 8. it shall be sufficient for the bills of lading or the declaration of shipment furnished by the shipper to refer with respect to the cost time and special conditions of the carriage. disputes shall be determined by the legal proofs which the parties may present in support of their respective claims. the examination shall be made before a notary. If there is no period fixed for the delivery of the goods the carrier shall be bound to forward them in the first shipment of the same of similar goods which he may make to the point where he must deliver them. The name. for such purposes as may be proper. Carriers may refuse packages which appear unfit for transportation. the damages caused by the delay should be for his account. with the shipper or consignee in attendance. by the contents of which the disputes which may arise regarding their execution and performance shall be decided. The description of the goods. and of the external marks or signs of the packages in which they are contained. Article 350. 10. apply the rate of those which appear to be the lowest. the points of departure and arrival. with the exception of that provided for in Article 366. The date on which shipment is made.

the goods shall be examined by experts is appointed by the parties. The value of the goods which the carrier must pay in cases of loss or misplacement shall be determined in accordance with that declared in the bill of lading. and they shall exercise their rights in the manner that may be proper. referred to in the preceding articles. in consequence of the damage. to pay the value which those not delivered may have at the point and at the time at which their delivery should have been made. the carrier shall pay the indemnity stipulated in the bill of lading. Article 370. Article 372. without any delay or obstruction. The same rule shall be applied to merchandise in bales or packages. or the inherent nature and defect of the goods shall be for the account and risk of the shipper. the claim against the carrier for damage or average which may be found therein upon opening the package. it must be made within such time. in which case the claim shall be admitted only at the time of receipt. the results to be reduced to writing. If doubts and disputes should arise between the consignee and the carrier with respect to the condition of the goods transported at the time their delivery to the former is made. or if he refuses to receive the goods. After the periods mentioned have elapsed. Article 373. vessels. force majeure. the shipper not being allowed to present proof that among the goods declared therein there were articles of greater value and money. Article 362. advising him thereof in writing before their arrival at the point of destination. this same rule is to be observed in all other cases in which this indemnity may be due. unless the consignee proves the impossibility of conveniently making use of them in this form. the carrier shall be liable for the damages which the delay may have caused. Article 364. If. unless the shipper has committed fraud in the bill of lading. this deposit producing all the effects of delivery without prejudice to third parties with a better right. When this abandonment takes place. and. neither the shipper nor the consignee being entitled to anything else. reserving his right to proceed against the latter if he was not the party directly responsible for the fault which gave rise to the claim of the shipper or consignee. the goods transported run the risk of being lost. where there is none of the first instance. Nevertheless. If the abandonment is not made. Article 363. Article 368. or against the other carriers who may have received the 6 . The carrier who makes the delivery shall likewise acquire all the actions and rights of those who preceded him in the conveyance. notwithstanding the precautions referred to in this article. or the transportation charges have been paid no claim shall be admitted against the carrier with regard to the condition in which the goods transported were delivered. vehicles. the consignee may refuse to receive the latter. the obligation of the carrier shall be reduced to the payment of the amount which. there being no time for their owners to dispose of them. Article 371. representing the goods to be of a kind or quality different from what they really were. the consignee may leave the goods transported in the hands of the former. The carrier who makes the delivery of the merchandise to the consignee by virtue of combined agreements or services with other carriers shall assume the obligations of those who proceeded him in the conveyance. the carrier shall be liable for the losses and damages resulting from the causes mentioned in the preceding article if it is proved. by the mere fact of being named in the bill of lading to receive them. Horses. he shall be liable for the damages which may be caused thereby. the municipal judge. the merchandise shall be deposited in a safe warehouse by order of the judicial authority. and if the interested parties should not agree with the expert opinion and they do not settle their differences. If a period has been fixed for the delivery of the goods. the carrier shall pay the full value of the goods as if they had been lost or mislaid. The shipper and the consignee shall have an immediate right of action against the carrier who executed the transportation contract. they were found at the time they were received. in a case of disagreement. by a third one appointed by the judicial authority. and if he does not do so. demanding of the latter their value at the current price on that day. If the effect of the damage referred to in Article 361 is merely a diminution in the value of the goods. according to the bill of lading. Article 367. shall provide for their deposit at the disposal of the shipper. Article 369. Article 365. although with respect to railroads said liability shall be subordinated to the provisions of the laws of concession with respect to the property. The carrier must deliver to the consignee. when he proves that he cannot make use of them independently of the others. placing them for this purpose at the disposal of the judicial authority or of the official designated by special provisions. and failing to do so. Outside of the cases mentioned in the second paragraph of Article 361. the indemnification for losses and damages by reason of the delay cannot exceed the current price which the goods transported would have had on the day and at the place in which they should have been delivered. If those not delivered form part of the goods transported. equipment and all other principal and accessory means of transportation shall be specially bound in favor of the shipper. If. the carrier shall be obliged to deliver the goods shipped in the same condition in which. separating those parcels which appear sound. Proof of these accidents is incumbent upon the carrier. that they arose through his negligence or by reason of his having failed to take the precautions which usage has established among careful persons. the carrier may proceed to sell them. all the losses and deteriorations which the goods may suffer during the transportation by reason of fortuitous event. the consignee shall not be bound to receive them. provided that the indications of damage or average which gives rise to the claim cannot be ascertained from the outside part of such packages.As a consequence. this segregation to be made by distinct and separate pieces and without dividing a single object. on account of their nature or by reason of unavoidable accident. the goods which he may have received. and to what this Code established as to the manner and form of effecting seizures and attachments against said companies. as against him. and for failure to do so. constitutes such difference in value. If the consignee cannot be found at the residence indicated in the bill of lading or if he refuses to pay the transportation charges and expenses. Article 366. In case of delay through the fault of the carrier. If among the damaged goods there should be some pieces in good conditions and without any defect. If no indemnity has been stipulated and the delay exceeds the time fixed in the bill of lading. in the judgment of experts. the goods are rendered useless for sale and consumption for the purposes for which they are properly destined. and he may have them in the hands of the carrier. without any damage or impairment. the foregoing provision shall be applicable with respect to those damaged and the consignee shall receive those which are sound. Within the twenty-four hours following the receipt of the merchandise. may be made.

the carrier shall have no other action than that corresponding to him as an ordinary creditor. and in case of delay in this payment. both shall become responsible. The consignees to whom the shipments was made may not defer the payment of the expenses and transportation charges of the goods they received after the lapse of twenty-four hours following their delivery. with a statement of the circumstances required in Article 350 and others following for the respective bills of lading. the carrier may demand the judicial sale of the goods transported in an amount necessary to cover the cost of transportation and the expenses incurred. Article 379. with the formalities required by Article 36. during the whole course of the trip and upon arrival at the point of destination. 7 . In either case they shall be subrogated in the place of the carriers themselves. contract to do so through others. although they do not personally effect the transportation of the merchandise. with respect to tho obligations and responsibility of the latter. provided it is claimed within the eight days mentioned in the preceding article. and once prescribed. This special right shall prescribed eight days after the delivery has been made.goods transported without reservation. the reservation made by the latter shall not relieve them from the responsibilities which they may have incurred by their own acts. Article 377. The goods transported shall be especially bound to answer for the cost of transportation and for the expenses and fees incurred for them during their conveyance and until the moment of their delivery. as well as with regard to their rights. However. Agents for transportation shall be obliged to keep a special registry. The carrier shall be liable for all the consequences which may arise from his failure to comply with the formalities prescribed by the laws and regulations of the public administration. Article 376. Article 375. If the carrier has acted by virtue of a formal order of the shipper or consignee of the merchandise. either as contractors for a particular and definite operation. Article 378. Article 374. except when his failure arises from having been led into error by falsehood on the part of the shipper in the declaration of the merchandise. The provisions contained in Article 349 and following shall be understood as equally applicable to those who. in which all the goods the transportation of which is undertaken shall be entered in consecutive order of number and dates. The preference of the carrier to the payment of what is owed him for the transportation and expenses of the goods delivered to the consignee shall not be cut off by the bankruptcy of the latter. or as agents for transportations and conveyances.

712. except (1) those owned and/or operated by the Armed Forces of the Philippines and by foreign governments for military purposes. including fishing vessels covered by Presidential Decree No. engines. 3) xxx The Administrator shall: "a. with the formalities prescribed in the common law for judicial sales. Art. Art. and in consequence of certain contracts. If the consignee or the underwriter should reside at said port or should have representatives there. the local authority. Com. Merchant vessels constitute property. Code. vessels shall continue to be considered as personal property. 43 except transient civilian vessels of foreign registry. 125. which shall not produce any effect with regard to third persons if not recorded in the registry of vessels. on in their absence. In case the sale is made to a Filipino. 585. stores and other articles shall be appraised by means of an inventory. or whether he retains any interest in said vessel in full or in part. In every case. Corn. These advertisements shall be repeated every ten days and their publication shall be stated in the proceedings. subject to the following rules: 1. 474 (PROVIDING FOR THE REORGANIZATION OF MARITIME FUNCTIONS IN THE PHILIPPINES. the bill of sale shall be executed before the Consul of the Republic of the Philippines at the port where it terminates its voyage. including fishing vessels covered under Presidential Decree No. and in the other newspaper which the court may determine. "Vessels" or "Water craft" — Any barge. Code. 12). In the absence of any of these requisites. CREATING THE MARITIME INDUSTRY AUTHORITY AND FOR OTHER PURPOSES). licenses or documents necessary or incident thereto. being on a voyage. vessels owned and/ or operated by the Armed Forces of the Philippines or by foreign governments for military purposes.VESSEL IN GENERAL PRESIDENTIAL DECREE NO. health. Ship agents and seaman shall be subject to the provisions of the laws and regulations of the public administration on navigation. or less than three gross tons (Sec. customs. EXECUTIVE ORDER NO. Issue Certificates of Public Convenience for the operation of domestic and overseas water carriers. If the vessel being on a voyage or in a foreign port. with a just title duly recorded. 3. the alienation of the vessel must be made to appear with a statement of whether the vendor receives its price in whole or part thereof. Issue Certificate of Philippine Registry for all vessels being used in Philippine waters. tanker. 579. The hull of the vessel. AND FOR OTHER PURPOSES") "The Maritime Industry Authority is hereby retained and shall have the following functions: c. safety of vessels and other similar provisions. 125-A (AMENDING EXECUTIVE ORDER NO. said proceedings being brought to the notice of the persona who may wish to take part in the auction. Art. 4. 578. restricted by the provisions of this Code. Corn. The auction shall be held on the day fixed. 573. After the damages to the vessel has been proved as well as the impossibility of her being repaired to continue the voyage. 574. When a vessel. Register as well as issue certificates. which may be acquired and transferred by any of the means recognized by law. to the consul of the Republic of the Philippines. and (ii) bancos. Corn. The order or decree ordering the public auction shall be posted in the usual places. The acquisition of a vessel must be included in a written instrument. or court. ENTITLED "REORGANIZING THE MINISTRY OF TRANSPORTATION AND COMMUNICATIONS DEFINING ITS POWERS AND FUNCTIONS. The period which may be fixed for the auction shall not be less than twenty days. its owner or owners should voluntarily alienate her either to Filipinos or to foreigners domiciled in the capital or in a port of another country. fishing boats or other artificial contrivance utilizing any source of motive power designed. 2. and the consul." (Sec. her sale at public auction shall be ordered. her rigging. this fact shall be stated in the certificate of navigation. Ownership and other real rights over property are acquired and transmitted by law. by donation. or court or local authority in the absence of the former. sailboats and other watercraft which are not motorized. lighter. bulk carrier passenger ship freighter. "b. by testate and intestate succession. or the judge. sailboats and other waterborne contrivance of less than three gross capacity and not motorized. JUDICIAL AND VOLUNTARY SALE Art. Code. The consul shall immediately forward a true copy of the bill of purchase of the vessel to the registry of vessels of the port where said vessel is inscribed and registered. Code. Art. container ship. ACQUISITION OF VESSELS Art. The ownership of a vessel shall also be acquired by the possession thereof in good faith for three years. by tradition. uninterrupted possession for ten years shall be necessary in order to acquire ownership. should there be any. should there be one. They may also be acquired by means of prescription. Corn. Code. A captain cannot acquire by prescription the ship of which he is in command. and bancos. NCC. and shall be advertised in the newspaper of the port where the auction is to be held. For all purposes of law not modified or 8 . d. used or capable of being used as a means of water transportation operating either as common contract carrier. they must be cited in order that they may take part in the proceedings for the account of whom it may concern. or to the judge. shall order an examination of the vessel to be made. 43. Builders of vessels may employ the material and with regard to their construction and rigging may follow the system which is not convenient to their interests. shall be rendered useless for navigation. and said instrument shall produce no effect with regard to third persons if it is not inscribed in the registry of the consulate. Ownership is acquired by occupation and by intellectual creation. the captain shall apply to the judge or court of competent jurisdiction of the port of arrival. should it be a foreign port.

Corn. proven by the policy of the contract or certificate taken from the books of the broker. However. and recorded in the certificate of the registry of the vessel. unless there is an agreement to the contrary in either case. provisions. and should have been made while the vessel was on a voyage. 6. and in his absence by the consul. The salaries of the caretakers and watchmen of the vessel and any other expenses connected with the preservation of said vessel. In all judicial sales of vessels for the payment of creditors. the said creditors shall have preference in the order stated: (subject to and/or modified by P. 3. The amounts borrowed on bottomry bonds before the departure of the vessel. The rigging. Art. approved by the chief of the Bureau of Merchant Marine where there is one. The reimbursement for the parts of the freight the captain may have sold in order to repair the vessel. Code. PERSONS PARTICIPATING IN MARITIME COMMERCE Art. Neither the owner of the vessel nor the ship agent shall be liable for the obligations contracted by the captain if the latter exceeds his powers and privileges pertaining to him by reason of his position or conferred upon him by the former. The arms.If the sale should take place when the vessel is in a foreign country. 10. A majority shall be the relatives majority of the voting members. which were not delivered to the consignees or for averages suffered for which the vessel is liable. The pilotage charges. 681. The rent of the warehouse where the rigging and stores of the vessel have been taken cared of. stores. or who represents her in the port in which she happens to be. and three months after the record of sale in the Registry of Vessels. if it is a steamer. But if the sale should have been voluntary.D. If the alienation of the vessel should take place while said vessel is on a voyage. Art. After the bill of the judicial sale at public auction has been executed and inscribed in the Registry of Vessels. Corn. Code. and provision the vessel. shall always be understood as included in the sale thereof if they are owned by the vendor at the time of the sale. The representation of the smallest part in the ownership shall have one vote. according to an appraisement approved by the judge or court. 214) 1. 586. 4. The vendor shall be under the obligation to deliver to the purchaser a certificate of the record of the vessel in the registry up to the date of the sale. Code. 5. Corn. proven by means of proper certificates of the officers entrusted with the collection. proven by means of the contract executed according to law and recorded in the Registry of Vessels. the port of her registry. and proportionately the other part owners as many votes as they have parts equal to the smallest one. 587. Corn. If two or more persons should be part owners of a merchant vessel. 8. Com. Art. if the amounts claimed were made use of for the benefit of the vessel. This partnership shall be governed by the resolutions of the majority of the members. Code. 589. Code. and fuel shall not be considered as included in the sale. If the sale takes place after the arrival of the vessel at the port of its destination. The salaries due the captain and crew. Code. The part of the price which has not been paid the last vendor. the owner or agent shall be liable. from the time of arrival until her sale. an association shall be presumed as established by the part owners. If the proceeds of the sale should not be sufficient to pay all the creditors included in one number or grade. and the payment of the crew and other persons which go to make up its complement shall be paid by the purchaser for the said voyage. and those arising from the repair and equipment of the vessel and its provisioning with victuals and fuel during its last voyage. or judge. in case of disagreement. Corn. Code. No. or court. provided the creditor proves that the amount claimed was invested for the benefit of the same. 580. Code. provided either appears in a judicial or arbitration decision. tackle. If there should be only two part owners. and the other sea or port charges. and engine of a vessel. the residue shall be divided among them pro rata. munitions of war. The judicial costs of tike proceedings. or if they were contracted for the vessel while on a voyage and said vessel has not returned to 9. the amounts borrowed during the voyage with the authority mentioned in the foregoing subdivision complying with the same requisites. Corn. Art. Corn. equip. or after her arrival. Com. which appear to have been paid or are due by virtue of a true account approved by the judge or court. Art. the credits pending for the payment of material and work in the construction of the vessel when it has not navigated. The credits in favor of the public treasury proven by means of an official certificate of the competent authority. Art. tonnage dues. 9 . Art. The owner of a vessel and the ship agent shall be civilly liable for the acts of the captain and for the obligations contracted by the latter to repair. Code. the freightage shall belong to the vendor and he shall pay the crew and other persons which go to make up its complement. In order that the credits provided for in this subdivision may enjoy the preference. 2. 582. the vote of the member having the largest interest shall be decided by lot. By ship agent is understood the person entrusted with provisioning of a vessel. provided the sale has been ordered by a judicial instrument executed with the formalities required in such cases. they must be made under the authority required for such cases and entered in the certificate of registry of said vessels. 576. which shall he verified by virtue of the liquidation made from the rolls of the crew and account books of the vessel. all the other liabilities of the vessel in favor of the creditors shall be considered cancelled. 577. according to contract. they must appear by contracts recorded in the registry of vessels. 7. Art. and the insurance premium. The ship agents shall be civilly liable for the indemnities in favor of third persons which arise from the conduct of the captain in the care of the goods which the vessel carried. during their last voyage. the purchaser shall receive all the freightage it earns from the time it received its last cargo. The indemnity due the shippers for the value of the goods shipped. but he may exempt himself therefrom by abandoning the vessel with all her equipments and the freightage it may have earned during the voyage. the creditors shall retain their rights against the vessel until her return to the port of her registry. the special provisions governing such cases shall be observed. 588.

Art. Art. and provisioning of the vessel in the port of departure. for the benefit of the vessel. without prejudice to the civil or criminal actions which the minority may deem fit to institute afterwards. and there should be a tie. Before a vessel goes out to sea. Code. Code. Art. Art. 597. In case of the voluntary sale of the vessel. Art. and without further proceedings than the acknowledgment of the signatures of the persons who voted for the resolution. Art. without prejudice to always having the books and correspondence relating to the vessel and to its voyages at their disposal. Com. they shall receive their salary until the return to the place where the contract was made. to the provisions contained in Article 609. The ship agent may discharge the duties of captain of the vessel subject in every case. Art. 596. The appointment of director or ship agent shall be revocable at the will of the members. unless there are good reasons for the discharge. in the proportion of their contribution to the common fund. 604. equipment. must be qualified to trade and must be — recorded in the merchant's registry of the province. the disagreement shall be decided by a vote of the members. 607. Code. subject to the provisions of the law of civil procedure unless the part owners unanimously agree otherwise. If two or more co-owners request the position of captain. or manifest or proven negligence. Art. Art. necessary for navigation. Art. for the expenses of repairs to the vessel. the right to proper indemnity being reserved in favor of the 10 . Code. the managing ship agents shall be entitled to an executory action. and may. equipment and provisioning of the vessel. 595. Code. The owners of a vessel shall have preference in her charter over other persons. Art. nor insure the vessel. Art. discharge the captain and members of the crew whose contract did not state a definite period nor a definite voyage. 590. which shall be instituted by virtue of a resolution of the majority. all in accordance with Article 636 et seq. Code. Code. The ship agent shall represent the ownership of the vessel. of this code. 608. Corn. 603. they cannot be discharged until the fulfillment of their contracts. the co-owners shall satisfy the expenses in proportion to their interest. except for reasons of insubordination in serious matters. Art. All the part owners shall be liable in proportion to their respective ownership. Code. Code. Code. If the captain or any other member of the crew should be discharged during the voyage. Corn. without interfering with her navigation. Each part owner may exempt himself from this liability by the abandonment before a notary of the part of the vessel belonging to him. all contracts between the ship agent and captain shall terminate. Corn. The resolutions of the majority with regard to the repair. it shall be decided by lot. he cannot be deprived of his office except for the reasons mentioned in Article 605. Corn. in his own name and in such capacity. Code. Art. 606. Corn. paying them the salaries earned according to their contracts. Art. The ship agent cannot order a new voyage. the position shall be given to the part owner having the larger interest in the vessel. for the results of the acts of the captain. The sale of the vessel must be made at public auction. 600. Corn. in all that relates to the requirements of navigation. Art. offering equal conditions and price. and if the vote should result in a tie. Corn. 605. The managing ship agent of an association shall give his co-owners an account of the results of each voyage of the vessel. the ship agent may at his discretion. The ship agent shall indemnify the captain for all the expenses he may have incurred from his own funds or from those of other persons. and freight of the vessel. The ship agent. attached or levied upon execution in her entirely for the private debts of a part owner. Corn. robbery. take judicial and extrajudicial steps in all that relates to commerce. who shall be bound in all that refers to repairs.A vessel cannot be detained. 594. Code. and. unless there is a special and specific agreement in respect thereto. They shall likewise be liable in the same proportion for the expenses of maintenance. Corn. unless these privileges were granted him in the certificate of his appointment. Corn. If two or more of the former should claim said right the one having greater interest shall be preferred. Corn. Code. 592. which. without the authority of her owner or by virtue of a resolution of the majority of the co-owners. he cannot be discharged without the ship agent returning to him the amount of his interest therein. provisions. the matter shall be decided by lot.. and for other expenses which are incurred by virtue of a resolution of the majority. The resolutions of the majority relating to the dissolution of the association and sale of the vessel shall also be binding on the minority. Code. in the absence of an agreement between the parties. Code. If he should insure the vessel without authority therefor he shall be secondarily liable for the solvency of the underwriter. After the account of the managing ship agent has been approved by a relative majority. 593. The ship agent shall select and enter into an agreement with the captain. referred to in Article 587. Code. The co-owners of a vessel shall be civilly liable. Corn. Should there be any profits. Com. In order to enforce the payment. but the proceedings shall be limited to the interest the debtor may have in the vessel. 599. and shall contract in the name of the owners. Art. Art. theft. 601. armament. 602. If the captain should be a part owner in the vessel. the co-owners may demand of the managing ship agent the amount due them. and without any indemnity whatsoever. which must be acquired by the other part owners after a judicial appraisement of the value of the portion or portions assigned. fuel. The part owners shall elect the manager who is to represent them in the capacity of ship agent. 591. Corn. If the interest of the petitioners should be the same. and should they have equal interest. Corn. If the captain who is a part owner should have obtained the command of the vessel by virtue of a special agreement contained in the articles of co-partnership. details of equipment. unless the minority members renounce their participation therein. Code. subject always to the right of preemption and redemption mentioned in Article 575 being always reserved in favor of said part owners. Corn. Code. shall be appraised by experts appointed in the manner established in the law of civil procedure. shall bind the minority. Com. Com. If the contract of the captain and members of the crew with the ship agent should be for a definite period or voyage. habitual drunkenness. 598. in general. nor make contracts for a new charter. Art. and damage caused to the vessel or to its cargo by malice. be he at the same time an owner of a vessel or a manager for an owner or for an association of co-owners. by means of an executory action without further requisite than the acknowledgment of the signatures of the instrument approving the account. Code.

when he has no 11 . By requesting said funds from the consignees of the vessel or the correspondents of the ship agent. 4. as established by marine laws. — (a) Candidates for mate and master having passed the requisite examination shall be entitled to a certificate entitling them to navigate in any oceans. — If the Board of Marine Examines shall find that the experience. Code. 2. 3. the 4. — The Philippine Coast Guard shall perform the following functions: e) To issue licenses and certificates to officers. the course sailed. and shall intrust her navigation to the person possessing the qualifications required by said ordinance and regulations. for the repairs to the hull and engines of the vessel and to her rigging and equipment which are absolutely necessary in order for her to be able to continue and conclude her voyage. and all the obligations which encumber the same up to that date. POWERS Art. of navigation. rivers or lakes for which they have shown proficiency and thorough practical knowledge. the latter should be insolvent. the prevailing winds. he shall limit himself to the financial administration of the vessel. shall procure the same in the successive order stated below: 1. (b) Candidates for patron in major coastwise trade having passed the requisite examination shall be entitled to certificates authorizing them to navigate in the Philippine coastwise trade. acting in accordance with the instructions received and protecting the interest of the owner most carefully. 5. To make contracts for the charter of the vessel in the absence of the ship agent or its consignee. placing at the beginning of each one a note of the number of folios it contains. on board the vessel. after the action against the vendor has been instituted. (c) Candidates for patron in the minor coastwise trade having passed the requisite examination shall be entitled to certificates authorizing them to navigate upon the sea. To have on board before starting on a voyage a detailed inventory of the hull. the invoices of manifest of the cargo. and in his absence by the competent authority. 609. the certificate of registry proving the ownership of the vessel. DUTIES Art. The Tariff and Customs Code provides: Sec. the navigation certificate. Code. 612. major and minor patrons and seamen. By borrowing the amount required by means of a bottomry loan. signed by the marine official. harbors. ordinances or regulations. Corn. at the first port touched. If the owner of a vessel desires to be the captain thereof and does not have the legal qualifications therefor. the captain. Issuance of Certificates. and the instrument of the expert visit or inspection. in accordance with the instructions he may have received from the ship agent. or by those 2. It shall so certify to the Bureau of Customs which office shall issue the appropriate certificate. but the ship agent shall not be permitted to employ any member against the captain's express refusal. as well as suspend and revoke such licenses and certificates. To have a copy of this code on board. 611. in similar urgent cases and on voyage. he shall act in concurrence with the latter. and qualifications required to command and direct the vessel. and to propose said crew. habits and character of an applicant are such as to warrant the belief that he can safely be entrusted with the duties and responsibilities of the position for which he makes application and that the applicants has in other respect complied with the other requirements of law. the rigging carried. In the two latter cases he must apply to the judicial authority of the port. if in the Republic of the Philippines and to the Philippine consul. purchasing all that may be necessary for the purpose. 2. in accordance with the agreements and the laws and regulations of the merchant marine. 3. stores. the role of the persons who make up the crew of the vessel. 5173 provides: Sec. To adopt all the measures which may be necessary to keep the vessel well supplied and equipped. according to the agreement made with the ship agent. Sec. who are to take cognizance thereof. By drawing on the ship agent. By applying to the consignees of the cargo or to the persons interested therein.captain. No. having legal capacity to bind themselves in accordance with this Code. 6." he shall enter every day the condition of the atmosphere. 823. and other equipment of the vessel. and the contracts entered into with the crew. Captains and masters of vessels must be Filipinos. which shall be called "log book. The following duties are inherent in the office of captain: 1. 3. holding a preliminary investigation on the crimes committed on board the vessel on the high seas. 5. To make. The vessel sold shall remain subject to the security of the payment of said indemnity if. tackle. the charters or authenticated copies thereof. which he shall turn over to the authorities. punishment upon those who do not comply with his orders or who conduct themselves against discipline. In order to comply with the obligations mentioned in the foregoing Article. In the first book. Com. and to equip her to pursue the voyage. and that they are not disqualified according to the same for the discharge of the duties of that position. funds and does not expect to receive any from the ship agent. Com. the list of passengers. QUALIFICATIONS RA. Code. engine. capacity. and must prove that they have the skill. Specific Functions. to the local authority. master or patron of a vessel: 1. 822. To impose. provided there is no time to request instructions of the ship agent. but if she should arrive at a point where there is a consignee of the vessel. Code. To have three foiled and stamped books. Certification of Application for Marine Officer. Com. The following powers are inherent in the position of captain. and where there should be none. proceeding in accordance with the provisions of the law of civil procedure. should it have been made at the port of departure. To command the crew and direct the vessel to the port of its destination. To appoint or make contracts with the crew in the absence of the ship agent. rigging. 610. Art. pilots. should said agent be present. Art. By selling a sufficient amount of the cargo to cover the amount absolutely necessary to repair the vessel. if in a foreign country. the health certificate. CAPTAINS AND MASTERS OF VESSELS. 3. bays.

To be on deck at the time of sighting land and to take command on entering and leaving ports. volume. the captain should receive news of the appearance of privateers or men of war against his flag. or weight makes the work of the sailors difficult. To give an account to the ship agent from the port where the vessel arrives of the reason therefor. and port of departures of the vessel. and all other expenses. and the price of the passage. signed by all the persons who may have taken part therein. the time the freight is taken on board and carefully watch a dangerous character to be taken on. and if she has equipment for good navigations. wages. and then the articles of most value. and reason of arrival. and principally the favorable season it takes place. notify him of the freight he may have received. he shall be obliged to make the nearest neutral port. 10. To take the steps necessary before the competent authority in order to enter in the certificate of the vessel in the Registry of Vessels. 11. and before abandoning her to hear the officers of the crew. in accordance with subdivision 8 of this Article. within twenty-four hours. or. 4. he allows merchandise to be carried on deck. as witnesses. maneuvers executed. they should be forcibly taken away from him. To present himself. in their absence of members of the crew. and give him any information and data which may be of interest. Code. mail. health. he shall make an entry in his freight book and shall prove the fact before the competent authority at the first port he touches. when making a port in distress. and of the steam or engine book kept by the engineer. telegraph. and other incidents of navigation. and await an occasion to sail under convoy or until the danger is over or to receive final orders from the ship agent or shippers. He shall furthermore enter therein a list of all the members of the crew. and have the consent of the shippers and the ship agent. and the freightage earned. To demand a pilot at the expense of the vessel whenever required by navigation and principally when a port. engines. For the information indicated he shall make use of the binnacle book. 6. and the amounts invested in provisions. taking advantage of the semaphore. in the presence of passengers. If he should be attacked by a privateer and after having tried to avoid the encounter and having resisted the delivery of the equipment of the vessel or of its cargo. To observe the rules on the situation of lights and evolutions to prevent collisions. an examination of the vessel. Corn. advise him of his departure. called "freight book. etc." he shall enter all the amounts collected and paid for the account of the vessel. 13. either directly. the special character of the equipment. on account of the nature of the merchandise. To remain on board in case of danger to the vessel until all hope to save her is lost. the sources of the collection. before receiving the freight. he shall be exempted from liability. inform his ship agent or shippers. names of the shippers and of the consignees. one by the captain of the vessel and the other one by the persons who request the examination. and the amounts they have received on account. and if he should have to take a boat he shall take with him. stating their domiciles. stating their marks and packages. under their liability." he shall record the entry and exit of all goods. the distance covered. in order to ascertain whether she is watertight. In the absence of marine officials or of the consul. preserving a certificate of memorandum of this inspection. as well as the imperfections and averages of the cargo and the effects and consequences of the jettison. according to the case. 12. In the same book he shall record the names and places of sailing of the passengers and the number of packages of which their baggage consists. The experts shall be appointed. abiding by the decision of the majority. and in case of disagreement a third shall be appointed by the marine authority of the port. stating therein all the incidents of the wreck. In case of wreck he shall make the proper protest in due from at the first port reached. repairs acquisition of rigging or goods. and others. not to permit that any freight be carried on deck which by reason if its disposition. management and isolation. being obliged to prove in case of the loss of the books and papers that he did all he could to save them. fuel outfits. should there be any. giving the captain the proper certificate in order to show his arrival under stress and the reason therefor. up a detailed inventory. before the competent authority or the Philippine consul. To remain constantly on board the vessel with the crew during 8. customs. He shall not spend the night away from the vessel except for serious causes or by reason of official business. or even of the passengers and crew. 622. no matter what is its cause. being liable for all that he may do in violation thereof. ports of loading and unloading. unless there is a pilot on board discharging his duties. with the officers of the crew. their wages. and which might endanger the safety of the vessel. the He shall also enter the damages suffered by the vessel in her hull. 9. Corn. entering specifically article by article. he shall record the decision adopted. Art. and rivers. and tackle. which declaration shall be supervised by the authority or by the consul if after examining the same it is found to be acceptable. he must hear the opinion of the officers of the vessel. Art. without the precautions which are recommended for their packing. stating the name and domicile of the shippers. In the record book called the "accounting book. the books and papers. the obligations which he may contract in accordance with Article 583. before anything else. To put in a safe place and keep all the papers and belongings of any member of the crew who might die on the vessel. registry. 12 . and whether the rigging and engines are in good navigation. To make. before twentyfour hours have elapsed.horsepower of the engines. If when on a voyage. canal or river. or a roadstead or anchoring place is to be entered with which neither he. After the force majeure has been proven. freightage earned. and two experts. to the maritime authority if in the Republic of the Philippines and to the Philippine consul if in a foreign country. 623. Code. To comply with the obligations imposed by the laws and rules of navigation. the declaration must be made before the local authority. and in cases of grave resolutions which require the advice or a meeting of the officers of the vessel. such as inflammable or explosive substances. the officers nor the crew are acquainted. 5. and to make a statement of the name. of its cargo. or by delivery to their families. 16. and if.. canals roadsteads. 15. and amounts borrowed on bottomry loan. drawing. and salaries. 14. 7. if required by the shippers and passengers. To conduct himself according to the rules and precepts contained in the instructions of the ship agent. In the third book. or he should be obliged to deliver them.

8 and 9 of Article 580. if they disagree. the consul or the local authority as the case may be. The lack of this formality shall make the captain personally liable to the creditors who may be prejudiced through his fault. in a proper case. proven by the policy of the contract or certificate taken from the books of the broker. A captain who. presenting the certificate of the registry of the vessel treated of in Article 612. In order that the credits provided for in this subdivision may enjoy the preference. 625. 9. the credits pending for the payment of material and work in the construction of the vessel. Neither can be borrow money on bottomry for his own transactions. Coin. he must necessarily state what interest he has in the vessel. The captain shall be civilly liable to the ship agent and the latter to the third persons who may have made contracts with the former — 1. the substitute as well as the captain may be discharged by the ship agent. In case of violation of this Article. 615. Code. and. Corn. rigging and freightage to the ship agent. 615. unless there is proof to the contrary. 583. the substitute as well as the captain may be discharged by the ship agent. The amounts borrowed on bottomry bonds before the departure of the vessel. Without the consent of the ship agent. and should he do so the contract shall be void. he is saved alone or with part of his crew. Code. the vessel. engines. 580. and in his absence to the judge or court to the proper local authority. he shall apply to the judge or court if he is in Philippine territory. delivering the cargo without any defalcation to the consignees. Art. they must appear by the contracts recorded in the Registry of Vessels. and should he do so. Code. and the ship agent may furthermore discharge him. immediately proceeding with the proof of the facts. The judge or court. the said creditors shall have preference in the order stated: 8. except on the portion of the vessel he owns. and those arising from the repair and equipment of the vessel and its provisioning with the victuals and fuel during its last voyage. and should he do so. and perform the other formalities required by the regulations of the administration. the principal. The part of the price which has not been paid the last vendor. Art. 617. and shall be subject to the provisions of the Penal Code. A captain whose vessel has gone through a hurricane or who believes that the cargo has suffered damages or averages. The statement of the captain shall be accepted if it is in accordance with those of the crew and passengers. the latter shall be accepted. Code. or tackle of the vessel. Code. in view of the result of the proceedings instituted. besides being liable for all the acts of the substitute and bound to the indemnities mentioned in the foregoing articles. and the instruments proving the obligation contracted. the captain cannot have himself substituted by another persons. provided no money has been previously borrowed on the whole vessel. and the losses shall be for his exclusive account. without prejudice to criminal penalties which may be proper. The captain shall proceed in the same manner if. when it has not navigated. Corn. Corn. fraud in his accounts shall reimburse the amount defrauded. Art. with a memorandum of the folios. or who pledges or sells merchandise or provisions outside of the cases and without the formalities prescribed in this code. shall make a protest thereon before the competent authority at the first port he touches within the twenty-four hours following his arrival. The captain. and should he do so. Corn.Art. receiving a sworn statement of the members of the crew and passengers who may have been saved. Code. interest and costs. Corn. 618. and provided there does not exist any other kind of lien or obligation chargeable against the vessel. it not being permitted to open the hatches until his has been done. Code. LIABILITIES Art. The authority. Code. proven by means of the contract executed according to law and recorded in the Registry of Vessels. rigging. For all the damages suffered by the vessel and its cargo by PROHIBITED ACTS Art. and taking the other steps which may assist in arriving at the facts. the captain cannot have himself substituted by another person. besides being liable for all the acts of the 13 . stamped and foiled. shall make a temporary memorandum in the certificate of their result. without being prevented by fortuitous accident or by force majeure. substitute and bound to the indemnities mentioned in the foregoing Article. Code. interest and costs. the profit shall belong to the other peoples in interests. and shall indemnify for the damages he may cause. Art. Art. shall be liable for the principal. having agreed to make a voyage fails to fulfill his obligation. or so that it can be admitted as a legal and preferred obligation in case of sale before the return. he shall make a statement of the result of the proceedings in the log book and in that of the sailing mate. for their presentation to the judge or court of the destination. The captain may not contract loans on respondentia secured by the cargos. He who commits. When he is permitted to do so. and shall ratify it within the same period when he arrives at the place of his destination. Corn. which he must lubricate. Art. the vessel having been wrecked. under his personal responsibility as soon as he arrives at the port of destination. and otherwise to the consul of the Republic of the Philippines. and make a sworn statement of the facts. by reason of the sale of the vessel by virtue of a declaration of unseaworthiness. A captain who borrows money on the hull. or the consul abroad shall verify the said facts. Com. Corn. the amounts borrowed during the voyage with the authority mentioned in the foregoing subdivision complying with the same requisites and the insurance premium. Art. 624. should there be one. of if they were contracted for the vessel while on a voyage and said vessel has not returned to the port of her registry. In all judicial sales of vessels for the payment of creditors. Code. Art. and shall deliver the original records of the proceedings to the captain. Code. Corn. they must be made under the authority required for such cases and entered in the certificate of registry of said vessels. shall be charged to the private account of the captain. 614. 613. Corn. in order that it may be recorded in the registry when the vessel returns to the port of her registry. in which case he shall appear before the nearest authority. Without the consent of the ship agent. shall indemnify for all the losses his action may cause. shall obtain the necessary permission from the health and customs officers. A captain who navigates for freight in common or on shares cannot make any separate transaction for his own account. If while on a voyage the captain should find it necessary to contract one or more of the obligations mentioned in Nos. 621.

5. When there are two or more engineers on one vessel. The sailing mate shall personally and especially keep a book foiled and stamped on all its pages. who shall be the only one liable for the consequences of his order. Art. and to take charge of the tackle and equipment which make up her outfit. requesting the necessary orders and instructions of the captain. Corn. the leeway. called the "binnacle book. with the exception of the cases or without the formalities referred to in Article 612. and shall then assume all his powers. discipline." with a memorandum at the beginning stating the number of folios it contain. and navigations. or by reason of faults committed by the crew in the service and defense of the same. Art. The sailing mate shall be liable foi all damages suffered by the vessel and cargo by reason of his negligence or want of skill. 620. Art. if he does not prove that he made full use of his authority to prevent or avoid them. For those arising by reason of his voluntarily entering a port other than his destination. The captain shall not be liable for the damages caused to the vessel or to the cargo by reason of force majeure'. the direction and force of the wind. or to the vessel and cargo. 627. in the opinion of the officers of the vessel. For those arising by reason of the non-observance of the provisions contained in the regulations for lights and maneuvers for the purpose of preventing collisions. at the port of loading. Corn. Code. the number of revolutions and under the name of "incidents" the revolutions made. shall take the place of the captain in cases of absence. Art. reserving his right of action against the guilty parties. Code. In order to change the course and to take the one most convenient for a good voyage of the vessel. or afloat alongside the ship. and the other engineers and all the personnel of the engines shall be under his order. the sailing mate shall come to an agreement with the captain. 4. at a meeting with the shippers or supercargoes who may be on board. and implements belonging thereto. 4. 3. the sailing mate shall make the proper protest. and shall enter therein daily the distance and course travelled. and to see that it is exactly and carefully carried out. which shall be incurred by the ship agent. 631. and confiscations imposed on account of violation of the laws and regulations of customs. Code. suggesting to the captain the repairs necessary and replacement of the goods and implements which are rendered useless and lost. until he delivers it on the shore or on the discharging wharf. the rigging set. 5. If the latter should object. 2. Coin. or death. Com. For those arising by reason of his going out of his course or taking a course which he should not have taken without sufficient cause. signed by the competent authority. Engineers shall be considered as officers of the vessel. health. the condition of the atmosphere and of the sea. the sailing mate shall make the remarks he may consider necessary in the presence of the other officers of the vessel. without prejudice to the criminal liability which may arise. To watch over the preservation of the hull and rigging of the vessel. For the losses and damages caused by mutinies on board the vessel. and shall obey the captain. Corn. and quickly informing him of any occurrence in which the intervention of his authority may be necessary. being liable for the accidents or damages which may arise by reason of his want of skill or negligence to the motor apparatus. as well as the spare parts.reason of want of skills or negligence on his part. To assign to each sailor the work he is to do on board. if a felony or misdemeanor were committed. Code. He shall keep the engines and boilers in good condition and in state of cleanliness. obligations and liabilities. Art. Art. Code. unless the former has expremly bound himself personally or signed a draft or promissory note in his name. of the port of unloading unless the contrary has been expressly agreed upon. 14 . The sailing mate must supply himself with charts of the seas in which he will navigate with the maps and quadrants or sextants which are in use and which are necessary for the discharge of his duties. without prejudice to the criminal liability which may be proper if a felony or misdemeanor is proven. 629. whatsoever shall exempt him from this vessel. 7. For those arising by reason of undue use of powers and nonfulfillment of the obligations which are his in accordance with Articles 610 and 612. 2. is accordance with the instructions received. as the second chief of the vessel and unless the ship agent orders otherwise. In order to be taken on board as a marine engineer forming part of the complement of a merchant vessel. 630. If a misdemeanor or crime has been committed he shall be liable in accordance with the Penal Code. it shall be necessary to possess the qualifications which the law and regulations require. the number of furnaces fired. To preserve order. instruments. sickness. the lubricating material and. and all the particulars and accidents which may occur during the voyage. but he shall always be so — no agreement to the contrary being valid — for those arising through his own fault. equipment and provisioning of the 3. Neither shall he be personally liable for the obligations he may have contracted for the repair. the steam pressure. For the losses. finally all which comes under the jurisdiction of an engineer on board a vessel. Art. With regard to engineers the following rules shall govern: 1. the latitude and longitude observed. Code. It shall be the duty of the second mate: 1. Com. 6. If the captain should still insist in his objection. 3. 8. Code. The captain shall be liable for the cargo from the time it is turned over to him at the dock. To take charge by inventory of the rigging and all the equipment of the vessel. and not to be disqualified in accordance therewith to hold said position. keeping the vessel always ready for maneuvers. Corn. being liable for the accidents which may arise by reason of his fault in this matter. unless the ship agent has ordered otherwise. but they shall have no authority or intervention except in matters referring to the motor apparatus. fines. police. 628. For all the thefts and robberies committed by the crew. the fuel. the variations of the needle. and shall order what may be proper in order that they may always be ready for regular use. OFFICERS Art. he shall furthermore have the motor apparatus under his charge. and good service among the crew. 619. To take care that the cargo is well arranged. one of them shall be chief. 632. Code. Corn. the meetings with other vessels. The sailing mate. if it should be paid up. signed by him and by another one of the officers in the log book. 2. No exception obligation.

Code. Art. the number thereof not to exceed one-fifth of the total crew. notwithstanding this. Corn. Said sailor shall furthermore lose the wages earned on his first contract to the benefit of the vessel for which he may have signed. unless the sickness is the result of his own fault. signed by the latter. which concern them. who shall be the only one liable for the consequences of his order. to whom. the seaman shall be attended and cured at the expense of the common funds. the sailor who has signed for one vessel should sign for another one. or when any other accident occurs in his department of which the captain should be immediately informed. and under the heading of "note worthy occurrence. A sailor who has been contracted to serve on a vessel cannot rescind his contract nor fail to comply therewith except by reason of a legitimate impediment which may have happened to him. The second mate shall take command of the vessel in case of the impossibility or disability of the captain and sailing mate. as they appear in the book. Every member of the crew may demand from the captain a copy. and shall obey the captain. 644. injury or death 5. If a sailor should die during the voyage his heir shall be given the wages earned and not received. Art. Code. If the book includes the requisites prescribed in Article 612. there shall be paid what may have been earned up to the date of his death. the captain could not find a sufficient number of Filipino sailors. or by the consuls or consular agents of the Republic of the Philippines if executed abroad. without having requested the permission referred to in the foregoing paragraphs. the full amount of wages or the full part of the profits due him as to the others of his 6. and there should not appear any signs of alterations in its clauses. if he should object to their being made. He shall inform the captain of any average which may occur to the motor apparatus. the sailor shall be considered as living. assuming in such case their powers and responsibility. the heirs shall not be entitled to claim anything. entering the same in the engine book. responsibilities. but if the latter died before the departure of the vessel from the port. and if. Corn. Neither may he transfer from the service of one vessel to another without obtaining the written consent of the captain of the vessel on which he may be. The agreements which the captain may make with the members of the crew and others who go to make up the complement of the vessel. for example. Code. If the sickness should come from by an injury received in the service or defense of the vessel. there being deducted before anything else from the proceeds of the freightage the cost of the attendance and treatment. And if the contract was on shares and death occurred after the voyage was begun. and the speed of the vessel. stating that they were read in the said document. must be reduced to writing in the account book without the intervention of a notary public or clerk of court signed by the parties thereto. which will not give rise to doubts or claims. a. the captain should insist in his objection. and the whole amount if he died on the return voyage. referred to in the third paragraph of this Article. If in foreign ports. the temperatures. to which reference is made in Article 612. the consumption of fuel and lubricating material. frequently advising him furthermore of the consumption of fuel and lubricating material. the number of furnaces fired. At any rate. A seaman who falls sick shall not lose his right to wages during the voyage. 635. it shall be admitted as evidence in questions which may arise between the captain and the crew with regard to the agreements contained therein and the amounts paid on account of the same. He shall make no change in the motor apparatus. the chief engineer shall make the proper protest. If the death should have occurred in the defense of the vessel. shall be personally liable to the captain of the vessel to which the sailor first belonged for that part of the indemnity. he may make up the crew with foreigners. stating therein all the obligations which each one contracts and all the rights they acquire. Formalities of contract Art. If. force and direction of the wind. Art. which the sailor could not pay. These shall also be stated. Code." the averages and imperfections which occur in the engines and boilers. the causes therefor and the means employed to repair the same. of the agreement and of the liquidation of his wages. and shall inform him when it may be necessary to stop the engines for some time. Sickness. If the contract was for a fixed sum for the whole voyage. said authorities taking care that obligations and rights are recorded in a concise and clear manner. should have made a new agreement with him. and the captain may choose between forcing him to fulfill the services to which he first bound himself or look for a person to substitute him at his expenses. Code. Corn. with the consent of the consul of marine 15 . and his heirs shall be paid. according to his contract and the reason of his death. CREW b. half the amount earned shall be paid if the sailor died on the voyage out. nor shall he repair the averages he may have noticed in the same. Duties and liabilities Art. the heirs shall be paid the entire portion due the seaman. he shall state the reasons he may deem proper in the presence of the other engineers or officers. The captain shall take care to read to them the articles of this code. Corn. Rights in cases of: 1. he may ship foreigners residing in the country. without obtaining said permission. such as. namely — If he died a natural death and was engaged on wages. nor change the normal speed of its movement without prior authority of the captain. in the form of a loan. taking the information from the binnacle book. Corn. and the degree of saturation of the water. 634. the vacuum in the condenser. 645. and vised by the marine authority if they are executed in the Philippine territory. the second contract shall be void. knowing that a sailor is in the service of another vessel. 633. The captain may make up his crew with the number he may consider advisable. and in the absence of Filipino sailors. the steam pressure in the boilers and cylinders. the rigging set. c. at the end of the voyage. He shall keep a book or registry called the "engine book" in which there shall be entered all the data that refer to the work of the engines.4. A captain who. the costs of the medical attendance and treatment shall be defrayed from the common funds.

Corn. The captain may. refuse to permit a sailor whom he may have engaged to go on board. discounting in all cases the sums advanced. on account of the greater distance or for other reasons. however. the voyage is revoked by the will of the ship agent of the charterers before or after the vessel has put to sea. Incapacity and repeated negligence in the fulfillment of the service he should render.: 1. and those engaged by the month shall receive the amount corresponding to the time they might have been on board and to the time they may require to arrive at the port of destination. besides what may be due him. 2. 636. In the fifth case. Code. engaged for a fixed amount for the voyage shall receive the entire salary which may have been offered them if the voyage had terminated. or if the vessel is in the same manner given a different destination than that fixed in the agreement with the crew. Corn. in which case he will be obliged to pay him his wages as if he had rendered services. If they accept the change. The following shall be just causes for the revocation of the voyage. the captain may not abandon any member of his crew and land or on the sea. Should this not be the case. 16 . DISMISSAL Art. furthermore. Neither can the captain discharge a sailor during the time of his contract except for sufficient cause. 641. viz. If. The prohibition it receives in said port against the goods which make up the cargo of the vessel. he cannot be discharged until the end of the return voyage to the port where he enrolled. the captain and crew may mutually demand the enforcement of the contract. CORN. Should a fixed period for which a sailor has signed not be stated. and during the voyage and until the conclusion thereof. 5. against discipline. there shall be graduated what may due for said month and days. he shall only receive the wages due up to the day of his capture. 3. Art. the following being considered as such: 1. 2. or .hrough amicable arbitrators in case of disagreement. before setting out on a voyage and without giving any reason whatsoever. After the vessel has sailed. Code. In the same manner. but if the vessel is to continue its voyage. the crew shall continue to be paid half wages. each sailor engaged shall be given one month's salary. Corn. Repeated offenses of insubordination. after a voyage has begun. in the judgment of experts. If the agreement should have been for a fixed amount for the whole voyage. the crew having been engaged. according to the time they may have served thereon. Code. it shall be paid by the captain personally.class. The inability of the vessel to navigate. 3. the latter shall be regulated. some crime. his imprisonment and delivery to the competent authority should be proper in the first port touched. or sailing rate. and the voyage. Corn. X X X If the ship agent or the charterers of the vessel should give it a destination other than that fixed in the agreement. as if the voyage had been made. Desertion. 637. in the manner established in the law of civil procedure. with the exception of the provisions contained in Article 644. 6. calculating the same in proportion to the estimated duration of the voyage. as may be convenient for them. this shall not give rise to a reduction in the wages agreed upon. REVOCATION OF VOYAGE Art. 636. should give rise to an increase of wages. which shall be obligatory to the captain. 3. engineer. 4. or against the fulfillment of the service. Corn. the sailors shall be paid at the port which the captain may deem advisable to make for the benefit of the vessel and cargo. the latter shall be indemnified because of the rescission of the contract according to the case. 640. they shall be given by way of indemnity half the amount fixed n the first case. CODE. but if the detention should exceed three months the contract shall be rescinded and the crew shall be paid what hey should have earned according to the contract. Code. the contract must be complied within the terms agreed upon. in accordance with his contract for the services rendered to the vessel up to the date of the revocation. always reserving the criminal liability which may be proper. If the revocation of the voyage should be decided before the departure of the vessel from the port. and if the proposed voyage should be of such duration that it is calculated at approximately one month more or less. or for any other reason independent of the will of the ship agent. the crew shall not have any other right than to be entitled to recover the wages earned. Art. If. 5. Even if the voyage should be shortened to a nearer point. 2. besides what may be owned them for the part of the monthly wages corresponding to the days which lave elapsed from the date of their agreements. sailors. The detention or embargo of the same by order of the government. if the agreement is by month. Code. the captain being obliged. Habitual drunkenness. The perpetration of a crime which disturbs order on the vessel. the indemnity shall be fixed at fifteen days. 4. and the members of the crew should not agree thereto. This indemnity shall be paid from the funds of the vessel if the captain should have acted for reasons of prudence and in the interest of the safety and good services of the former. they shall indemnify the crew for the losses suffered. unless by reason of being guilty of CHANGE OF DESTINATION ART. but if the Usability of the vessel should have been caused by the negligence or lack of skill of the captain. 1. A declaration of war or interdiction of commerce with the power to whose territory the vessel was bound. Any occurrence which incapacitates the sailor to carry out the work under his charge. and may leave him on land. to pay said sailors in both cases for the passage to the said port or to the port of sailing of the vessel. 638. Art. any of the first three causes mentioned in the foregoing Article should occur. but should he have been captured on account of carelessness or other accident not related to the service. And if the agreement had been made for a fixed sum of the voyage. The blockade of the port of its destination or the breaking out of an epidemic after the agreement. If the revocation should take place after the vessel has put to sea. In case of the occurrence of the fourth cause. the seaman captured while defending the vessel shall be considered present so as to enjoy the same benefits as the rest.

making all the steps indicated in its itinerary. the passengers shall only be entitled to the return of the fare. manner of making contracts. Article 703. If before the voyage is begun it is suspended through the exclusive fault of the captain or ship agent. with regard to that part of the administration legitimately conferred upon the latter. Code. or to force majeure. by reason of capture or wreck. In all matters pertaining to the preservation of order and discipline on boards. Corn. before the beginning of the voyage. Article 698. his heirs shall only be obliged to pay half of the fare agreed upon. but if the suspension is due to fortuitous events. Book I. with exception of the ventures which. The captain. when there is supercargo. if issued to a specified person. or to remain in the ports he must or in under necessity of touching for a period longer than that required by the needs of navigation. but should it be for the account of the latter. and a passenger should agree to await the repairs. If the delay should exceed ten days. they are permitted to do. including the captain. they may also demand indemnity for losses and damages. Corn. If a disease should break out and be officially declared epidemic in the port of destination. If the vessel should change owner or captain. in the following cases: 1. In case of delay in the departure of the vessel. Supercargoes shall discharge on board the vessel the administrative duties which the ship agent or shippers may have assigned them. If the interruption should be caused by the disability of the vessel. The right to passage. Should another passenger be received in the place of the deceased.If the revocation or change of the voyage should originate from the shippers or charterers. Art. A passenger shall be considered a shipper insofar as the goods he carries on board are concerned. the judge or court shall summarily fix it. All the provisions contained in the second section of Title II. Corn. A vessel exclusively devoted to the transportation of passengers must take them directly to the port or ports of designation. In case a voyage already begun should be interrupted. Article 702. the judge or court. 17 . 649. the captain shall be under obligation. 647. shall fix the amount which has to be left for the benefit of the vessel. the remainder of the vessel as well as the value of the freightage or the cargo saved. to furnish the supply of food necessary for their sustenance at a reasonable price. If before beginning the voyage the passenger should die. unless the damage arises from an act of the captain or of the crew. in accordance with the custom of the port of destination. without special authorization or agreement. If the contract is rescinded. but with a right to indemnity if the interruption should have been caused by the captain exclusively. without any distinction whatsoever. to the passengers shall be obliged to pay the fare in proportion to the distance covered. 651. in order to collect the passage money and 2. or should leave the vessel without permission from the captain when the latter is ready to leave the port. If the expenses of subsistence are included in the price stipulated. the ship agent shall have a right to demand of them the indemnity which may be justly due. Should the passenger not arrive on board at the time fixed. the captain shall have a right to claim payment of what he may have furnished the passengers. should be saved. Article 694. but shall continue in force all acts which are inseparable from his authority and office. the captain attempts to change it or there occurs a naval war with the power to which the vessel was destined. and liabilities of factors shall be applicable to supercargoes. Com. 650. the vessel passengers shall be subject to the orders of the captain. after a declaration of experts. Code. The convenience or the interest of the passengers shall not obligate or empower the captain to stand inshore or enter places which may take the vessel out of her course. the crew engaged in wages. Neither shall they be permitted to invest in the return trip more than the profits from the ventures. In the absence of an agreement to the contrary. Supercargoes cannot. PASSENGERS ON SEA VOYAGES Article 693. as well as that of the ship agent for the recovery of the advances made. 643. If the passage price has not been agreed upon. Article 704. may not be transferred without the consent of the captain or of the consignee. it necessary. he may not be required to pay any increased price of passage. but his living expenses during the stay shall be for his own account. unless there is an express authorization from the principals. it shall be understood that the subsistence of the passengers during the voyage is included in the price of the passage. and the captain shall not be responsible for what the former may keep under his immediate and special custody. 3. in case of necessity. but only on the portion of the freightage saved. Code. Article 701. the passengers have the right to remain on board and to be furnished with food for the account of the vessel unless the delay is due to fortuitous events or to force majeure. no payment shall be made by said heirs. make any transaction for their own account during the voyage. without rights to recover for losses and damages if the interruption is due to fortuitous event or to force majeure. Article 699. Art. If. SUPERCARGOES Art. requesting the same shall be entitled to the return of the fare* and if it is due exclusively to the fault of the captain or ship agent. or part of either. shall retain their rights on the salvage. Code. RESCISSION OF CONTRACT Art. with regard to qualifications. and shall respect the latter in his duties as chief of the vessel. Article 696. but sailors who are engaged on shares shall not have any right whatsoever to the salvage of the hull. the passengers shall have the right to a refund of their fares and to recover losses and damages. so far as they go. or to any other cause independent of the captain or ship agent. The officers and the crew of the vessel shall be exempted from all obligations contracted. they shall keep an account and record of their transactions in a book which shall have the same condition and requisites as required for the accounting book of the captain. Code. after hearing experts if he considers. passengers. Corn. before or after the commencement of the voyage. the captain may continue the voyage and demand the full passage price. Article 700. LOSS OF VESSEL Art. Article 697. If a portion of the vessel or cargo. Article 695. all rights of the crew to demand any wages whatsoever shall be extinguished. The powers and liabilities of the captain shall cease. if they deem it proper. no matter what the number of passengers may be. If the vessel and her cargo should be totally lost.

without prejudice to the right of the owner to recover the corresponding indemnity from the captain. The lowest value of the goods sold by the captain in arrival under stress for the payment of provisions and in order to save the crew. 8. The losses suffered by the cargo from the time of its embarkation until it is unloaded. to the cargo. 3. Gross or general a. whether they belong to the vessel. Code. Code. or to the crew. privateers. if it were accidental and unavoidable. the vessel. 8. quarantine. and other so-called port expenses. 809.expenses. and shall carefully take care of the papers and goods which may be on board belonging to the passenger. In case of the death of passenger during the voyage. until he is returned to the vessel or to his domicile. The damage suffered by the goods of the cargo through the opening made in the vessel in order to drain her and prevent her sinking. and the damage suffered through said act by the goods which are kept on board. The expenses of curing and maintaining the members of the crew who may have been wounded or crippled in defending or saving the vessel. should he prefer it. Corn. Averages shall be: 1. and the necessary expenses which he may incur in his imprisonment. Any loss suffered by the cargo through the fault. scuttled or broken in order to save the cargo. All damages or deterioration which the vessel may suffer from the time she puts to sea from the port of departure until she casts anchor in the port of destination. as a 10. 5. Nature and kinds general rule. in order to save the cargo. arms. or both at the same time. 2. Items Art. The damage caused to the vessel which had to be opened. to take the steps required by the circumstances. Corn. the vessel. 2. her cargo. The wages and victuals of the crew of a vessel chartered by the month during the time it should be embargoed or detained by force majeure or by order of the government. 811. lazarretto. For purposes of this code. Corn. The wages and victuals of the crew when the vessel is detained or embargoes by a legitimate order or force majeure. All extraordinary or accidental expenses which may be incurred during the voyage for the preservation of the vessel or cargo. or pirates. Art. and especially the following: 1. lighterage and towage. Com. or in order to 18 . The goods or cash invested in the redemption of the vessel or the cargo captured by enemies. as a general rule. The expenses of removing or transferring a portion of the cargo in order to lighten the vessel and place her in condition to enter a port of roadstead. from the time she puts to sea from the port of departure until she anchors in the port of destination. The owner of the goods which gave rise to the expense or suffered the damage shall bear the simple or particular averages. and equipment. The losses and expenses suffered by the vessel in her hull. Corn. if the charter has been contracted for a fixed sum for the voyage. The wages of any member of the crew detained as hostage by enemies. or both. 810. privateers or pirates. for the same causes and reasons. in order to make repairs or secure provisions. 9. all the damages and expenses which are deliberately caused in order to save the vessel. and any other expenses common to navigation shall be considered ordinary expenses to be defrayed by the shipowner. 806. the anchors and the chains which are abandoned. and the expenses incurred to avoid and repair the same. 7. wages. Corn. observing the provisions of case No. 10 of Articles 612 with regard to members of the crew DAMAGES AND ACCIDENTS IN MARITIME COMMERCE AVERAGES 1. the latter shall be liable for all the losses caused. health. The victuals and wages of the crew while the vessel is in quarantine. and in case of the sale of the same he shall be given preference over other creditors acting the same way as in the collection of freightage. or both. The loss suffered by the vessel or cargo by reason of an impact or collision with another. of sustenance. 5. anchorage. General or gross. Code. 2. with regard to the body. either on account of the inherent defect of the goods or by reason of an accident at the sea or force majeure. Article 705. from a real and known risk. and particularly the following: 1. Art. Art. such as those of pilotage of costs and ports. unless there is a special agreement to the contrary. rigging. or barratry of the captain or of the crew. Simple or particular. 4. The losses suffered by the merchandise loaded on deck. 7. 9. all the expenses and damages caused to the vessel or to her cargo which have not inured to the benefit and common profit of all the persons interested in the vessel and her cargo. Art. 6. 3. negligence. the captain shall be authorized. Simple or particular 4. 6. and expenses of the vessel detained during the time the arrangement or redemption is taking place. and the freightage. General or gross averages shall be. or to cover any other requirement of the vessel against which the proper amount shall be charged. except in coastwise navigation. The petty and ordinary expenses incident to navigation. The expenses caused through floating a vessel intentionally stranded for the purpose of saving her. Code. 2. may retain the goods belonging to the passenger. 2. 807. The goods jettisoned to lighten the vessel. and those suffered by the merchandise from the time it is loaded in the port of shipment until it is unloaded in the port of consignment. Code. The cables or masts which are cut or rendered useless. 3. if the maritime ordinances allow it. Simple or particular averages shall be. Art. costs of barges and unloading until the merchandise is placed on the wharf. the following shall be considered averages: 1. Code. If the accident should occur through the fault or negligence of the captain. and the provisions. and the damage resulting therefrom to the goods removed or transferred. inspection. 808. The necessary expenses on arrival at a port.

should not be heard. Art. the votes against it. at the first opportunity. always beginning with those of the greatest weight and smallest value. 4.repair the damage caused for the common good. 846. If. 816. ropes. to which the vessels saved shall contribute. The proof of the average shall take place in the port where the repairs are made. and irresistible and urgent causes which moved the captain if he acted of his own accord. 860. all of them shall be cited and heard. or bay. without prejudice to the right of the shippers to proceed against the captain before the judge or court of competent jurisdiction. should they not have renounced this right. or damaged. the vessel should be lost running same risk. Corn. 12. Effects 2. Corn. the proceedings treated of in Rules 1 and 2 shall be held there. Art. if they can prove that he acted with malice. Art. so that said port can be made. Jettison Art. notwithstanding the jettison of the merchandise. If. they may be executed under his liability. 815. they shall not contribute to the gross average. 817. and shall order the goods cast overboard in the following order: 1. Rights to contribution in general average shall not be affected. 2. lost. Corn. this loss shall be considered gross average. If on the contrary. or a majority. and the reason for the disagreement should there be any. Art. Code. it shall be necessary in so far as the cargo is concerned that their existence on board be proven by means of the bill of lading. In order to satisfy the amount of the gross or general averages. In order to incur the expenses and cause the damages corresponding to gross average. an equipment. Should they not be present or not have a legitimate representative. preferring if possible. creek. Code. in the second case. and where there is none. 813. if opposed to the majority. Corn. lack of skill. Art. to indemnity. The captain shall direct the jettison. The captain shall be obliged to deliver one copy of these minutes to the maritime judicial authority of the first police he may make within twenty-four hours after his arrival. the minutes shall be signed by all the persons present who could do so before taking action if possible. roadstead. Those which are on deck. Com. as well as when a judicial authority takes part therein at the request of any of the parties interested who do not agree thereto. the amount thereof being distributed between the vessel and the cargo from which it came. the liquidation shall be made by the consul in a foreign port. but this shall not prejudice any remedies which may be open against that party for such fault. the heaviest ones and those of least utility and value. The expenses of the liquidation of the average. shall be stated in detail all the goods jettisoned and mention shall be made of the injuries caused to those kept on board. the liquidation shall be made in the port of arrival. all the persons having an interest in the vessel and cargo therein at the time of the occurrence of the average shall contribute. and after the resolution. 818. and after hearing the persons interested in the cargo who may be present. by means of the inventory made up before the departure in accordance with the first paragraph of Article 612. liquidation. or in the port of unloading. and if not. though the event which gave rise to the sacrifice or expenditure may have been due to the fault of one of the parties to the adventure. 3. e. Those interested in the proof and liquidation of averages may mutually agree and bind themselves at any time with regard to the liability. their share being chargeable against the captain. Code. If the average should have occurred near the port of destination. In the first case. Com. no liability can be demanded of the salvage. or negligence. Corn. In order that the goods jettisoned may be included in the gross average and the owners thereof be entitled 19 . b. the merchandise transferred should be saved and the vessel should be lost. The owners of the goods saved shall not be liable for the indemnification of those jettisoned. unless the urgency of the case should be such that the time necessary for previous deliberation was lacking. If in lightening a vessel on account of a storm. Corn. Should the average have occurred outside of the waters under the jurisdiction of the Philippines or the cargo should have been sold in a foreign port by reason of an arrival under stress. no contribution whatsoever by reason of gross average shall be proper. In the absence of agreements. it should be decided to sink any vessel. as a necessary measure to extinguish a fire in port. there must be a resolution of the captain. 'Jason clause* Ruled D (York-Antwerp Rules). In the minutes. Essential requisites Art. Code. by the captain and by the officers of the vessel. and payment thereof. 1. Art. as if the loss has originated from a gross average. The resolution adopted to cause the damages which constitute a general average must necessarily be entered in the log book. Code. If the persons interested in the cargo. In the case where the liquidation of the averages is made privately by virtue of agreement. 812. in order to facilitate her entry into a port or roadstead. PROOF AND LIQUIDATION OF AVERAGES A. and with regard to those belonging to the vessel. Code. Code. Code. being on board the vessel. c. The loss suffered in the value of the goods sold at arrivals under stress in order to repair the vessel because of gross average. Code. by the judge or court of Art. to the amount and number absolutely indispensable. The liquidation shall be made in the port of unloading. 11. Corn. the following rules shall be observed. if it is a Philippine port. VOLUNTARY OR JUDICIAL Art. If the latter should object. Code. part of her cargo should be transferred to lighters or barges and be lost. should consider certain measures necessary. and the captain and officers. the owner of said part shall be entitled to indemnity. or the captain. Those which are below the upper deck. d. should any be necessary. 814. beginning with those which embarrass the maneuvers or damage the vessel. adopted after deliberation with the sailing mate and other officers of the vessel. breakage of masts. Corn. and to ratify it immediately by an oath. 847. stating the motives and reasons therefore.

deducting one-third by reason of the difference between new and old. Corn. At the instance of the captain. without prejudice to the action they may bring to demand indemnity from him. or where the merchandise is discharged. sold. in which case it shall be done if the interested persons agree. stating also separately whether there are or not any damages proceeding from the nature of the goods. If by reason of one or more accidents of the sea. or in both at the same time. The merchandise loaded on the upper deck of the vessel shall contribute to the gross average should it be saved. the ship agent or the shippers shall demand the liquidation. After the experts have been appointed by the persons interested. 856. and not by reason of a sea accident. Corn. shall be appraised at the current value. 849. Corn. and distribution of gross averages shall be held privately. if the storage on the deck took place without the consent of the latter. Code. 855. and otherwise to the local authority when they are to be held in a foreign port. 850. 2. there must be calculated the amount corresponding to each and stated distinctly. adding thereto the expenses and freightage subsequently arising. should take place on the same voyage. or of both. the value of the merchandise loaded shall be fixed by the purchase price. If the merchandise should be damaged. but there shall be no right to indemnity if it should be lost by reason of being jettisoned for general safety. the value shall be that stated in the invoices of purchase issued in the port of shipment. 5. Art. The same shall take place with that which is on board and is not included in the bills of lading or inventories. even though he be authorized only by a letter of the ship agent. deducting in both cases the expenses of appraisal. Corn. Art. 851. which should constitute the gross average. and expenses of unloading. to be counted from the day on which the liquidation may have been concluded and communicated to the persons interested in the vessel. Corn. Should an agreement not be possible. sale. customs duties. The experts shall also declare whether the repairs can be made immediately. 6.competent jurisdiction. If the voyage should be interrupted. B. If the liquidation is to be made in the port of departure. with the consent of all the parties in interest. If the captain does not comply with the provisions contained in the foregoing article. averages. according to the cases. C. Corn. Code. shall not earn interest by reason of delay until the period of three days has elapsed. not taking into consideration the bills of lading. and 1 percent of the goods damaged if particular average. as well as of those appraising and taking part in the unloading. Art. Should it not be visible at the time of unloading. the merchandise having been sold in a foreign port and the average cannot be estimated. or the net proceeds obtained at the sale thereof. except when the marine ordinances allow its shipment in this manner in coastwise navigation. 4. 853. or utilized. liquidation. there shall be taken as the contributing capital the value of the merchandise in the port of arrival. Code. and for the account of the proper person. unless there is an agreement to the contrary. 7. or utilization of the merchandise. and any other losses. the captain shall be obliged to demand of the expert appraisers and of the contractors making the repairs. loans on bottomry and respondentia. or by the judge or court. if the average should be visible at a mere glance. the shipper or the underwriter. and that of those which constitute the average. Corn. Code. CLAIMS NOT ADMISSABLE Art. it shall be appraised at its true value. or to the consul of the Philippines. said examination may be made after the delivery. With regard to the merchandise. For this purpose. and after the acceptance. of the cargo. who shall be the one in the port where these proceedings are to be held in accordance with the provisions of this code. Claims for averages shall not be admitted if they do not exceed 5 percent of the interest which the claimant may have in the vessel or in the cargo if it is gross average. particular and gross averages of the vessel. unless there is an agreement to the contrary. shall conform to the following rules: 1. Art. 848. including the expenses until they are put on board. Code. the expenses and damages corresponding to each average shall be determined separately in the port where the repairs are made. the sail. and in those of each average those corresponding to the vessel and to the cargo. repair. in order that they may decide as to whether the adjustment or liquidation of the gross average is to be made by experts and liquidators appointed by themselves. and their premiums. The freightage shall represent 50 percent by way of contributing capital. Art. Code. the examination thereof must be made before they are delivered. The merchandise saved which is to contribute to the payment of the gross average shall be valued at the current price thereof at the port of unloading. 854. the captain shall call all the persons interested. Corn. as may appear from a material inspection of the same. Art. Art. Provisions and munitions of war which the vessel may have on board shall not contribute to the gross 20 . APPRAISAL OF GENERAL AVERAGE For this purpose. Code. the adjustment. and in case there should be expenses common to the different averages and to the vessel and her cargo. 8. the captain shall apply to the judge or court of competent jurisdiction. When the representative is a person well known in the place where the liquidation is made. his intervention shall be admitted and shall produce legal effects. Merchandise lost. according to the laws of the country. The vessel shall be appraised at her real value in the condition in which it is found. Code. In any case the shipowner and the captain shall be liable to the shippers for the damages for the jettison. This deduction shall not be made with respect to anchors and chains. they shall proceed to the examination of the vessel and of the repairs required and of the estimate of their cost separating those losses and damages from those arising from the inherent defect of the things. deducting the freightage. that they separate and detail exactly in their appraisement or estimates and accounts all the expenses and damages belonging to each average. Code. should there be one. provided that its kind and quality appears in the bill of lading. Corn. provided that it is done within forty-eight hours from the unloading and without prejudice to the other proofs which the experts may deem proper. The masts cut down. in the cargo. 852. and other equipment of the vessel rendered useless for the purpose of saving her. or whether it is necessary to unload the vessel in order to examine and repair her. and should they not appear. The damages. cables. shall be appraised at the value which merchandise of its kind may have in the port of unloading. Art. within forty-eight hours following the arrival of the vessel at the port. The appraisement of the goods which are to contribute to the gross average. 3. excluding the insurance premium.

Rules 2 to 7. well-founded fear of seizure. That of the vessel in her actual condition. Code. officers. Corn. the liquidator shall examine the sworn statement of the captain. Code. he should find any defect in this procedure which might injure the rights of the persons interested or affect the liability of the captain. Corn.average. Com. Art. he shall call attention thereto in order that it may be corrected. If the owner of the goods jettisoned should recover them without having demanded any indemnity. and if. Code. according to a statement of experts. or damaged. 866. comparing it. ARRIVALS UNDER STRESS 1. it shall be the duty of the captain to collect the amount of the distribution. Neither shall the goods jettisoned contribute to the payment of the gross averages which may occur to those saved in a different and subsequent risk. Corn. Art. Art. Corn. 867. 4. The contributing capital. and of the cargo shall be obliged to pay for the indemnity of the gross average in so far as is required of each one of these objects respectively. The owners of the goods saved shall not be liable for the indemnification of those jettisoned. 865. after examining the circumstances of the case. Art. Corn. the vessel should be lost running same risk. supercargoes. Code. Code. the amount returned shall be distributed between the vessel and the persons interested in the cargo in the same proportion in which they contributed to the payment of the average. If the contributions should not pay the amount of the assessment within the third day after having been requested to do so. and crew. with the log book and all the contracts which may have been made between the persons interested in the average. he shall not be obliged to contribute to the payment of the gross average which may have been suffered by the rest of the cargo after the jettison. no contribution whatsoever by reason of gross average shall be proper. 857. or of their representatives. Code. Corn. expert examinations. in so far as they are applicable. should be lost through another accident taking place during the voyage. CAUSES 2. Corn. Code. as a result of this examination. as the case may be. deducting the damage caused by the jettison and the expenses incurred in their recovery. Code. If the persons interested in receiving the goods saved should give security sufficient to answer for the amount corresponding to the gross average. Art. he shall assemble the officers and shall call the persons interested in the cargo who may be present. e. Art. Code. Art. Com. Art. If. 859. not the clothing used by the captain. 863. After the amount of the gross average has been determined in accordance with the provisions of this code. There shall also be excepted the clothing used by the shipper. of the freightage. and after the approval of the accounts of the same by the persons interested or by the judge or court. Immediately thereafter he shall proceed with the distribution of the amount of the average. Corn. 864. Corn. Liquidation of general average Art. if possible. and passengers who may be on board at the time of the jettison. 869. or by reason of any accident of the sea disabling her to navigate. deducting the expenses incurred in saving them. 868. Corn. Corn. the appraisements. which he shall determine by the value of the cargo. 820. ropes. In the latter case. privateers or pirates. the captain may defer the delivery thereof until payment has been made. the arrival at the nearest and most convenient port shall be agreed upon. If the owner of the goods jettisoned should recover them after having received the indemnity for gross average. Coin. After the liquidation has been approved. Art. 858. d. Art. In order to effect the liquidation. If. the good* saved shall be attached. lost. breakage of masts. and he shall be liable to the owners of the goods averaged for the damages they suffer through his delay or negligence. in accordance with the rules established in Article 854. after the vessel having been saved from the risk which gave rise to the jettison. which shall be entered in the minutes in order that they make use thereof in the manner they may consider advisable. and shall he sold to cover the payment. Art. 860. If the captain during the navigation should believe that the vessel cannot continue the voyage to the port of destination on account of the lack of provisions. the goods saved and existing from the first risk shall continue liable to contribution by reason of the gross average according to their value in their condition at the time. 3. Code. The arrival under stress shall not be considered legal in the following cases: Art. 862. it shall be distributed pro rata among the goods which are to cover the same. The 50 percent of the amount of the freightage deducting the remaining 50 percent for wages and maintenance of the crew. the merchandise should subsequently be lost or stolen. the reason should be considered well-founded. 819. Code. Corn. and accounts of repairs made. Code. notwithstanding the jettison of the merchandise. The experts which the judge or court or the persons interested may appoint. as well as that of the goods lost which constitute the gross average. if necessary. Code. Liquidation of particular average Art. the captain cannot demand of the shippers or consignees that they contribute to the indemnity for the average unless the loss should occur by an act of the owner or consignee. The distribution of the gross average shall not be final until it has been agreed to. and equipment. drafting and entering in the log book the proper minutes. and otherwise he shall include it in the preliminaries of the liquidation. If. and who may attend the meeting without the right to vote. interested who may be present. Art. or in the absence thereof. The underwriters of the vessel. notwithstanding the saving of the vessel and of her cargo in consequence of the cutting down of masts or of any other damage deliberately done to the vessel for said purpose. If. shall proceed with the examination and appraisement of the average in the manner prescribed in Articles 853 and 854. he shall be obliged to return to the captain and to other persons interested in the cargo the amount he may have received. in order that he may proceed with the distribution of the average. Code. for which purpose he shall fix: 1. which shall be signed by all. After the appraisement of the goods saved has been concluded by the experts. 861. until it has been approved by the judge or court after an examination of the liquidation and a hearing of the persons 21 . Code. The captain shall have the deciding vote and the persons interested in the cargo may make the objections and protests they may deem proper. at the request of the captain. the entire record shall be turned over to the liquidator appointed.

the number and names of those lost. FORMALITIES Art. If a vessel should collide with another through fortuitous event or force majeure. FORTUITOUS 2. 815. — When a vessel from a foreign port is compelled by stress of weather or other necessity to put into any other port than that of her destination. upon request of the collector. or lack of skill on the part of the captain exists in the act causing the damage. rigged. 22 . privateers. and a copy thereof lodged with him. stating the name of the vessel and the names of all persons on board. except in cases of force majeure. equipped. justify the legality of the procedure. and other charges on. If the unloading should take place for both reasons. Tariff Code. When the managing owner or agent of such vessel has reason to believe that it has been lost. so far as the same can be ascertained. and in the second. Sec. to give the authorization. Code. COLLISIONS Classes and effects A. If the risk of enemies. subject only to the charge for storing and safekeeping of the articles and the fees for entrance and clearance. Code. a report thereof. or receives any damage affecting her seaworthiness or efficiency. and an entry in the book. according to usage and customs. advertisements. This protest. and such fact should be made to appear by sufficient proof to the collector who shall give his approval thereto and the unloading shall be deemed to have been lawfully effected. If the defect of the vessel should have been caused by reason of her not being repaired. if not made before the collector. privateers or pirates. — When any Philippine vessel. each vessel and its cargo shall be liable for its own damage. Com. want to foresight. In the first case. RESPONSIBILITY FOR EXPENSES 2. loss of property. manifest. or of the consul in a proper case. Corn. and the articles shall be unladed and stored under the supervision of the customs authorities. he should not continue the voyage. The captain shall. or a residue thereof. after an examination and declaration of experts. it shall be the duty of the Filipino consul. Whenever malice. 825. the captain may request the judge or court of competent jurisdiction. the captain must request authorization of the judge or court of competent jurisdiction to lighten the vessel. Code. 4. 1016. they shall be for the account of the owners of the merchandise. agent or master of such vessel shall. shall make protest under oath setting forth the causes or circumstances of such necessity. and dispose of. the cargo. if any. shall precede the departure. if after the cause of the arrival under stress has ceased. within such accident or damage occurred. — If the situation is such as to require the unlading of the vessel pending sojourn in port. RESPONSIBILITY OF CAPTAIN 3. the collector shall. and the estimated amount of loss or damage to the vessel or cargo. may be reladen on board the vessel. in a proper case. The captain shall be responsible for the damages caused by his delay. Unloading of vessel in port from necessity. must be produced to him. but they shall not be liable for the damages which may be caused by the shippers by reason of the arrival. Traffic Code. or there should be imminent danger of its being damaged. 821. or if they should have been rendered useless or lost through bad stowage or negligence in their care. the master. under the penalty of answering to the ship per for the price the merchandise would have brought if they have arrived at the port of destination in good condition. the port to which she belongs. upon sufficient proof of the necessity. Entrance of vessel through necessity. Tariff Code. stating the name of the vessel. If the cause of the arrival should have been the fear of enemies. and shall furnish. Art. Corn. and arranged in a convenient manner for the voyage or by reason of some erroneous order of the captain. it should be necessary to unload. the expenses shall be defrayed by the ship agent or owner. Sec. 823. and do so with the knowledge of the persons interested or his representative of the cargo. Corn. where there is one. such additional information as shall be required. Corn. the place where she was. Sec. the collector may grant permission to enter and pay the duties. the nature and probable occasion of the casualty. The expenses of an arrival under stress shall. or pirates should not have been well-known. in accordance with the provisions of Article 624. taxes. 822. and the vessel may proceed with the same to her destination. the expenses shall be defrayed in proportion of the value of the vessel and that of the cargo. and the person taking cognizance of the matter shall authorize it. the sale of all or part of the former. Art. If in order to make repairs to the vessel or because there is danger that the cargo may suffer damage. he shall promptly send notice in writing to the collector at her home port giving advise of such loss and the probable occasion therefor. and other formalities required by the case. 1017. Upon departure. If the entire cargo or part thereof should appear to be damaged. Code. No port charges shall be collected on vessels entering through stress of weather or other causes above described. by the first available mail send to the collector of the district Art. Report of accident to vessel. required to register sustains or causes any accident involving loss of life. always be for the account of the shipowner or ship agent. for whose benefit the act took place.1. Corn. within twenty-four hours after her arrival. If the lack of provisions should arise from the failure to take the necessary provisions for the voyage. the expenses shall be defrayed in proportion of the value of the vessel and that of the cargo. who shall be responsible for the same. Code. the master shall make. provided the latter is legitimate. Art. grant a permit therefor. If the unloading should take place for both reasons. Code. a deliberation and resolution in a meeting of the officers of the vessel and persons interested in the cargo who may be present. and shall furnish such other information as shall be called for. 824. Art. such part of the cargo as may be of perishable nature or as may be necessary to expenses attending the vessel. negligence. At the request of the master of the vessel or of the owner thereof. Within the same time. 830. and based on positive and justifiable facts. The custody and preservation of the cargo which has been unloaded shall be in the charge of the captain. the managing owner. or serious injury to any person. 4. in accordance with the provisions contained in Article 819. report to the collector if any part of the cargo was unladen from necessity or lost by casualty before arrival. 3. In a foreign port.

Art. or is obliged to be stranded in order to be saved. of the losses and damages resulting therefrom. the number or tons or weight. In the case above-mentioned the civil action of the owner against the person causing the injury as well as the criminal liabilities. B. or that of the first port of arrival of the vessel. and including it in the proceedings he must instituted in accordance with the provisions contained in Art. Code. Art. the ship agent or the shippers may demand indemnity of the captain for the damages caused to the vessel or to the cargo by the accident. if in Philippine territory. 839. LIABILITY Art. Art. name. Art. Corn. SHIPWRECKS Art. shall be presumed as lost by reason of collision. Should it not be possible to transfer to the other vessels the entire cargo of the vessel wrecked. but the latter shall have the right to be indemnified by the pilots without prejudice to the criminal liability which the latter may incur. Code. 614. Code. Art. If any captain should refuse. having been obliged to make a port to repair the damages caused by the collision is lost during the voyage. Code. 838. the designation thereof being made by the captain. Her flag and port of registry. The kind. If. Art. 11. If a vessel should be forced to collide with another one by a third vessel. ratifying the complaint within twenty-four hours after arrival at the first port. The amount of primage to be paid by the captain. 612. Com. Code. 842. Corn. Code. and both shall be solidarity responsible for the losses and damages suffered by their cargoes. shall be understood as limited to the value of the vessel with all her appurtenances and freightage earned during the voyage. The capacity. or measure which they respectively bind themselves to load and transport. 843. and when either does not know how or is not able to do so. PRESUMPTION OF COLLISION Art. If several vessels navigate under convoy. 826. Code. 10. The civil liability incurred by the shipowners in the cases prescribed in this section. Code. If the vessels colliding with each other should have pilots on board discharging their duties at the time of 23 . Code. Code. surname. The name. the captain thereof being civilly liable to said owner. forwarding the proceedings to the Secretary of the Department of Foreign Affairs for continuation and conclusion. the Filipino consul in said port shall hold a summary investigation of the accident. sinks immediately. and with preference over any other obligation. and the vessels should make a foreign port.Art. Code. Corn. the indemnity due by reason of the death or injury of persons shall have preference. 8. and domicile of the charterer. or if having taken place in the open seas. Corn. With respect to damages caused to persons or to the cargo. and the amount thereof must be paid by the owners of the former before they are delivered to them. each one shall suffer its own damages. Art. Code. 836. 837. Art. if the merchandise should be sold. or for the space to be occupied or for the weight or measure of the goods of which cargo consists. The provisions of the foregoing Article (Article 827) are applicable to the case in which it cannot be decided which of the two vessels had caused the collision. Corn. the goods of the highest value and smallest volume shall be saved first. through the fault. 832. the owner of the third vessel shall indemnify the losses and damages caused. 6. and 621. with the concurrence of the officers of his vessel CHARTER PARTIES FORM AND CONTENTS Art. besides the conditions freely stipulated. and to the consul of the Philippines if it occurred in a foreign country. stating whether it is to be a fixed amount for the voyage or so much per month. The goods saved from the wreck shall be specially bound for the payment of the expenses of the respective salvage. If the collision should take place between Philippine vessels in foreign waters. Code. 828. 652. Code. in accordance with the provisions contained in Articles 610. D. a vessel which is properly anchored and moored should collide with those nearby. are reserved. causing them damage. the injury occasioned shall be considered as particular average of the vessel run into. 7. A vessel which upon being run into. or whether it is the total cargo. Corn. 835. Art. Art. negligence. and tonnage of the vessel. Art. A charter party must be drawn in duplicate and signed by the contracting parties. the captain of the wrecked vessel shall enter a protest against him before two sea officials. which may be proper. If a vessel should collide with another. The name. Coin. Code. 838. Corn. after an expert appraisal. or because the vessel put to sea is insufficiently repaired and prepared. without sufficient cause to receivewhat may correspond to him. Art. 9. The name. or lack of skill of the captain. or in any other manner whatsoever agreed upon. 3. Corn. CULPABLE the collision. If both vessels may be blamed for the collision. 834. The port of loading and unloading. or any other member of the complement. 827. Code. the owner of the vessel at fault shall indemnify the losses and damages suffered. 2. and if he states that he is acting by commission. as well as that which. 840. 831. 841. Code. the absence of a protest cannot prejudice the persons interested who were not on board or were not in a condition to make known their wishes. and if the latter should make the charter party. the cargo saved shall be distributed among the rest in proportion to the amount which each one can receive. Corn. If the wreck or stranding should be caused by the malice. by two witnesses at his request. Corn. their presence shall not exempt the captains from the liabilities they incur. Corn. Corn. C. that of the person for whose account he makes the contract. and any of them should be wrecked. 4. The action for the recovery of losses and damages arising from collision cannot be admitted if a protest or declaration is not presented within twenty-four hours before the competent authority of the point where the collision took place. The freightage to be paid. sailing mate. and domicile of the ship-agent. 829. surname. Corn. 612. Corn. Code. surname and domicile of the captain. DOUBTFUL COLLISION Art. The charter party shall include. the following statements: 1. Corn. The lay days and extra lay days to be allowed and the rate of demurrage. by reason of a storm or other cause of force majeure. 5. negligence. Com. or lack of skill of the captain. When the value of the vessel and her appurtenance should not be sufficient to cover all the liabilities. the part of the wreck which may be saved belonging to them in the same proportion. The losses and deteriorations suffered by a vessel and her cargo by reason of shipwreck or stranding shall be individually for the account of the owners. The days agreed upon for loading and unloading.

having been chartered for the round trip. Code. discounting that which may have been earned on the merchandise which may have been carried on the voyage out or on the return trip. in the price of the charter. 680. before leaving the port. at the price he may have fixed. and requested and await orders from the shipper. said charterer may oblige him to unload it and require him to indemnify him for the losses suffered thereby. if he can do so and keep the vessel in trim. The charter party shall subsist if» the captain should not have any instructions from the charterer. The captain may likewise. The charterer of an entire vessel may subcharter the whole or part thereof for the amount he may consider most convenient. the captain cannot. if they wish. the captain not being allowed to refuse to receive on board the cargo delivered by the second charterers. 674. Corn. If the vessel has been chartered to receive the cargo in another port. preference shall be given to the person who has already loaded and arranged the cargo in the vessel. if the captain did not take other freight to complete up the load of the vessels.return. provided the conditions of the first charter are not changed. The shipowner or the captain shall observe in charter parties the capacity of the vessel or what is expressly designated in the registry of the same. there should be several charter parties. and there should appear to be an error or fraud in her capacity. the voyage shall be fixed within fifteen days from the time the loading began. the freightage should be reduced in proportion to the cargo the vessel cannot receive. and that the price agreed upon is paid in full. Corn. even though the full cargo is not loaded. the captain shall appear before the consignee designated in the charter party. Code. it should be necessary to stow it in such manner as to throw the vessel out of trim.OBLIGATIONS OF THE SHIPOWNER Art. OBLIGATIONS OF THE CHARTERER Art. the cargo should be discharged at the port of arrival. 679. Art. but if in order to stow said cargo. Code. The same shall be done if a vessel. 673. If the time necessary. that the vessel was not in a condition to navigate at the time of receiving the cargo. Code. Code. and none of the charterers desires to rescind the contract. according to the cases. Corn. on the contrary. should there be any. to receive orders from the shippers should have elapsed without the captain having received any instructions the cargo shall be deposited. the freightage for the voyage out shall be paid in full. If the person from whom the vessel is chartered after receiving a part of the cargo should not find sufficient to make up at least three-fifths of the amount the vessel can hold. with the limitation established in the next article. Code. the person whom the vessel is chartered or the captain cannot refuse to accept the rest of the cargo. under the penalty of making himself thereby liable for all the losses and damages occurring during the voyage to the cargo of those who did not consent to the change. or transport it. If the vessel has been chartered in whole. If the charterer should carry to the vessel more cargo than that contracted. Art. If the shipowner or the captain should contract to carry a greater amount of cargo that the vessel can hold. and should he do so. Com. he shall make a protest and return to the port where the charter was made. as well as the increase. Com. pro rata to the amounts of weight or space they may have engaged. 675. Corn. 669. The charterer shall pay the freightage in full. If the owner of the part of the cargo already loaded should procure some more at the same price and under similar or proportionate conditions to those accepted for the cargo received. should not be given any cargo for her . and it shall be liable for the payment of the freightage and expenses incurred by reason of the delay which shall be paid from the proceeds of the part first sold. in which case he shall pay the 24 . The person from whom the vessel is chartered shall be liable for all the losses caused the chartered by reason of the voluntary delay of the captain in putting to sea. Art. Art. for the. Code. The captain shall lose the freightage and shall indemnify the charterers if the latter should prove. excess may be admitted in accordance with the price stipulated in the contract if it can be well stowed without injuring the other shippers. he may substitute for the transportation another vessel inspected and declared suitable for the same voyage. Corn. they shall indemnify the shippers whose contracts they not fulfill for the losses they may have caused them by reason of their default. the person from whom the vessel is chartered being furthermore obliged to indemnify the charterer for the losses he may have caused. a difference greater than 2 percent between that stated and her true capacity not being permissible. A charterer who does not complete the full cargo who bound himself to ship shall pay the freightage of the amount he fails to load. and by reason of the want of space all the cargo contracted for can not be received. and a declaration of war or a blockade takes place during the voyage. 677. demanding by way of freightage the highest price which may have been stipulated for said voyage. 676. by orders of the shipper. Code. unload the merchandise placed on board clandestinely. in view of her tonnage. he shall inform the charterer and wait his instructions. notarially to the rules prescribed provided he has been requested naturally or judicially to put to sea at the proper time. Art. In such case the captain must proceed to the nearest safe and neutral port. Art. and in the meantime the lay days agreed upon shall begin to run. Art. should one have been made at the port of departure. and should the latter not deliver the cargo to him. in the opinion of the judge or court. If. After three-fifths of the vessel is loaded. unless there is a special agreement to the contrary. or those allowed by customs in the port. Code. Corn. and the expenses incurred and salaries earned during the detention shall be paid as general average. and should he do so. the charterers may load. Code. and the person from whom the vessel was chartered shall be obliged to indemnify them for the losses and damages. 670. Code. the captain must refuse it or unloaded it at the expense of its owner. 672. without the consent of the charterers or shippers substitute the vessel designated in the charter party another one. viz. he shall make efforts to find cargo. and the expenses of transfer being defrayed by him. accept cargo from any other person. Code. Should he not be able to make this change. when he has a right to do so. should nothing to the contrary have been stipulated. If.: If the vessel has been chartered by one shipper only. Corn. Art. and should he not find any after the lay days and extra lay days have elapsed. without the consent of the person chartering her. Corn. and that charterer should not wish to rescind the contract. Should there be no priority. Corn. Corn. Art. 678. the shipper shall have a right to demand that the vessel put to sea with the cargo she may have on board. Art. even against the certificate of inspection. if carried for the account of third persons. the person from whom she is chartered cannot. and the rest shall take places corresponding to them in the order of the dates of their contracts. 671. Should the captain not receive an answer within the time necessary therefor.

detention. Art. by reason of confiscation. the charterers shall pay the full freightage for one month. Code. Code. or for any other reason independent of the will of the ship agent. if the cargo should consist of liquids and should they have leaked out. the freightage for one month shall be paid. 2. Com. The unloading shall be made for the account of the charterer. Code. In such case. From one port to another of the Philippines and adjacent islands. dispose of the merchandise. If a vessel should make a port during the voyage in order to make urgent repairs and the charterers should prefer to In such case. machinery. she should return to the port of departure. 2. If the vessel should not be placed at the disposal of the charterer within the period and in the manner agreed upon. besides the demurrage due for the lay days and extra lay days. or the breaking out of an epidemic after the contract was executed. by reason of an embargo of the vessel by order of the government. they cannot demand any indemnity whatsoever from the charterer for the damage caused the vessel. or if there be an error in the statement of the flag under which she sails. Corn. or equipment of the vessel. 5. the person giving rise thereto shall be liable with his property. RESCISSION OF CHARTER PARTIES Art. 3. and any other damage which may be caused the other shippers. Code. 2. and two months. by paying one half the freightage. If. If the capacity of the vessel should not agree with that stated in the certificate of tonnage. should wish to unload his merchandise before arriving at the port of destination. however. before the vessel puts to sea from the port of departure. the charter party shall be respected. 686. Corn. all the changes and modifications to which the latter should be subject also governing the former. being permitted to unloaded her at their own expenses should they deem it advisable. In the third and fourth cases the person from whom the vessel was chartered shall have right to the freightage in full for the voyage out. enemies. In case of making a portion to repair the hull. and was taken on board with the knowledge of the person from whom the vessel was chartered or of the captain. Code. for the benefit of the cargo subject to deterioration. A charter party may be annulled at the request of the charterer. When the delay exceed thirty days. In charters for transportation of general freight. 684. or bad weather.first charterer the difference. should there be any. or the competent authority in a foreign land should order the merchandise to be unloaded. If the charter should have been made by the months. to the person from whom the vessel was chartered or to the shippers. If the merchandise should have been shipped for the purpose of illicit commerce. shall be liable for all the losses which may be caused the other shippers. The prohibition to receive at the said port the merchandise constituting the cargo of the vessel. The abandonment shall be proper. and the vendor shall indemnify the purchaser if the former did not inform him of the charter pending at the time of making the sale. the shippers must wait until the vessel is repaired. he shall pay the Full freightage. If. Code. if the voyage is for a port in different waters. Com. An indefinite detention. embargo. 688. there remaining in the containers not more than one-quarter of their contents. jointly with the owner of the merchandise. Corn. after the vessel has put to sea. 682. Art. If before loading the vessel he should abandon the charter paying half of the freightage agreed upon. In the second case the person from whom the vessel was chartered shall indemnify the charterer for the losses he may suffer. The charterers and shippers cannot abandon merchandise damaged on account of its own inherent defect or fortuitous event for the payment of the freightage and other expenses. A condition of blockade of the port of destination of said vessel. 25 . The impossibility of the vessel to navigate. and shippers should agree to unload her. Art. the latter must immediately pay the captain the freightage due and ither expenses to which he may be liable for said cargo. and the losses and damages caused the other shippers. If the charter at the termination of the extra lay days does not place the cargo alongside the vessel. 683. The charter party shall be rescinded and all actions arising therefrom shall be extinguished if. and should thereby give rise to losses. 690. 4. Art. and even though it may have been agreed. Corn. if the voyage is for a port in the same waters. Art. Code. the charter party may be rescinded: 1. the charterer must pay half of the freightage stipulated. 5. If the person from whom the vessel was chartered should sell her before the charterer has begun to load her and the purchaser should load her for his own account. Art. Art. The primage must be paid in the same proportion and it the same time as the freightage. the shippers or the court. the vendor shall indemnify the charterer for losses he may suffer. 689. Corn. without the knowledge of the person from whom the vessel was chartered or of the captain. 1. Corn. any of the following cases should occur: 1. any of the shippers may unload the merchandise before the beginning of the voyage. without fault of the captain or ship agent. At the request of the person from whom the vessel is chartered. If the charterer should ship goods different from those indicated at the time of executing the charter party. the expense of stowing and restowing the cargo. or the consul. 681. Art. Art. 687. 3. 685. the latter. 4. If the new owner of the vessel should not load her for his own account. should there be any. If the charterer without the occurrence of any of the cases of force majeure mentioned in the Foregoing article. on account of risk from pirates. for the full indemnity to all those injured through his fault. After the vessel has been unloaded and the cargo placed at the disposal of the consignee. Code. Corn. Com. Code. they shall only pay the freight in proportion to the distance covered by the vessel. A declaration of war of interdiction of commerce with the power to whose ports the vessel was to make its voyage. the expenses of unloading and reloading shall be For the account of the former. Code. the expenses of the arrival made at his request. or other causes.

Corn. A bill of lading drawn up in accordance with the provisions of this title shall be proof as between all those interested in the cargo and between the latter and the underwriters. the shipper shall keep one and send another to 26 . under the penalty of being liable for the cargo to the legitimate holder of the same. Art. and the captain shall only be entitled to freightage for the voyage out. but without changing the consignment and stating therein the circumstances prescribed in the last paragraph of Article 707. the person presenting the copy first issued. to order. The name. the bills of lading which the captain signed. for the delivery of the cargo and the payment of the freightage and expenses thereby incurred. and those to order. 708. or interdiction of commercial relations during the voyage. but when they are issued to order or to the bearer. and that through its mediation it may be delivered to the proper person. and the latter must do so. in which there shall be stated: 1. 711. Code. 6. 2. Should the bill of lading not agree. without prejudice to his right of action against the first captain. the captain shall prefer in delivering the same. 3. Art. 713. Corn. and marks of the merchandise. Corn. the shipper being entitled to request the unloading at the expense of the captain should the latter not sign it. if the bill of lading is issued in the name of a specified person. closing of ports. if the latter ceased to be such through his own fault. 691. those possessed by the shipper or consignee signed by the captain shall be proof against the captain or ship agent in favor of the consignee or shipper. or any other temporary cause. Code. shall be liable. with the exception of the case when the subsequent copy was issued on account of the loss of the first one. when the bills of lading referred to therein are in question. Code. at the proper time and for his own account. Code. and it is not valid except in case of the loss of the first one. Corn. The port of loading and that of unloading. The name of the captain and his domicile. A charter party shall be partially rescinded. Corn. demanding the same merchandise. In admitting this change at the instance of the shipper. made as many copies of the bill of lading as may be considered necessary by the persons interested.Art. provided all the copies previously issued be presented or returned to him. Code. and both are presented by different persons. the vessel should make the port designated for such a case in the instructions of the charterer. the shipper shall have right to demand of the new captain the ratification of the first bills of lading. indorsed in their favor. 4. Code. unload and load the merchandise. Art. or in the name of a specific person. 7. it shall be understood that the new captain accepts the cargo as it appears from the issued bills of lading. Art. After the cargo has been delivered. 5. the person to whom the bill of lading is transferred shall acquire all the rights and actions of the assignor or indorser with regard to the merchandise mentioned in the same. there shall be stated in all the copies. furthermore. Corn. In such case. all of which shall be signed by the captain and by the shipper. Art. by endorsement. Corn. There may be. and it should appear from an examination of the cargo that they are correct. Art. the charterer may. BILLS OF LADING FORM AND FORMALITIES Art. for the shipper. and tonnage of the vessel. in every case. During the interruption. If the vessel cannot put to sea on account of the closing of the port of departure. so that it may order the deposit of the merchandise. Art. Art. quality. 706. The captain cannot himself change the destination of the merchandise. 715. Code. The freightage and the primage stipulated. the captain shall take two. stating whether it is for the ship agent. The name of the shipper. Code. if. there must be stated in said duplicate this fact. which may have been made. Art. Code. according to the case. registry. Code. Com. 714. under the penalty. 716. be they either of the first four or of the subsequent ones. indemnify for losses and damages suffered thereby. Corn. Com. proof to the contrary being reserved by the latter. Art. If several persons should present bills of lading issued to bearer or to order. the consignee. The quantity. or at least the copy by which The bill of lading may be issued to bearer. Code. 718. one for himself and another for the ship agent. 709. The bill of lading issued to the bearer and sent to the consignee shall be transferable by actual delivery of the instrument. Corn. the captain shall apply to the judge or court. If before the vessel puts to sea the captain should die or should discontinue in his position through any accident. In their case. the charter shall be in force. Bills of lading which give rise to a most summary action or to judicial compulsion. and there should be observed any correction or erasure in any of them. Corn. he shall be obliged to issue it. The name of the consignee. 707. Corn. Four true copies of the original bill of lading shall be made. Code. he must first take up the bills of lading he may have issued. unless there is an agreement to the contrary. 717. as well as when only the second or subsequent copies issued without that proof are presented. it being alleged that the previous ones are not presented on account of their loss or for any other sufficient cause. If the copy sent to the latter should be duplicated. Corn. 710. The expenses arising from the examination of the cargo shall be defrayed by the ship agent. and those possessed by the captain or ship agent signed by the shipper shall be proof against the shipper or consignee in favor of the captain and ship agent. otherwise to be liable for said cargo if not properly delivered through his fault. Code. by reason of a declaration of war. for the cost of warehousing and other expenses arising therefrom. Code. and must be signed within twenty-four hours after the cargo has been received on board. or for the consignee. The delivery of the bill of lading shall effect the cancellation of all the provisional receipts of prior date given by the captain or his sub-alterns for partial deliveries of the cargo. a new bill of lading should be demanded of the captain. Art. Should said examination not be made. Com. and. paying demurrage if the reloading should continue after the reason for the detention has caused. 712. for the captain. obliging the latter thereby to unload it and place it in deposit. The captain and the shippers of the vessel are obliged to draft the bill of lading. Art. Code. provided security for the value of the cargo is given to his satisfaction. The subsistence and wages of the crew shall be considered as general average. the destination of each one. Of these copies. The legitimate holder of a bill of lading who does not present it to the captain of the vessel before her unloading. number of packages. without any of the contracting parties having a right to claim damages. If before delivering the cargo. 692. Art.

2. surname. or of the price they may receive in cause of accident. The actions pertaining to the lender shall be extinguished by the absolute loss of the goods on which the loan was made. and they shall be graduated in the inverse order of their dates. if it arose from an accident of the sea at the time and during the voyage designated in the contract. be returned before clearing. the loan shall be valid only for the amount at which said object is appraised by experts. Outside of the residence of the owner the captain may contract loans in accordance with the provisions of Articles 583 and 611. Under whichever of these forms the contract is executed. in which case they shall be transferable by indorsement. The names. with the obligation on the part of the borrower to return the principal and interest at the legal rate. The delay on the part of the consignee shall make him liable for the damages which such delay may cause the captain. By means of a private instruments. Loans on bottomry or respondentia may be executed: 1. Article 726. the contract shall be considered a simple loan. fuel. name. The contract may be made to order. although the obligation shall be valid between the contracting parties. engine. and fuel. provisions. 5. shall be returned to him with the receipt for the merchandise mentioned therein. Article. 3. if they were not loaded. with regard to other credits. the rigging. The name. The amount of the loan and the premium stipulated. but this shall not take place if the loss was caused by the inherent defect of the thing. without which requisites the credits of this kind shall not lave.the delivery is made. on account of fraudulent measures employed by the borrower. the repayment of the sum loaned and of the premium stipulated depends upon the safe arrival in port of the goods on which it is made. the interest which the parties in default may have in the vessel shall be liable for the loan in the proper proportion. 6. shall be considered a loan on bottomry or respondentia. Article 721. fixing their value in order to determine the principal of the loan. the contracts made during the voyage of a vessel shall produce no effect with regard to third persons. If one or more of the owners should be requested to furnish the amount necessary to repair or provision the vessel. Contracts which are not reduced to writing shall not give rise to judicial action. In order that the policy of the contracts executed in accordance with No. On On On On On the the the the the hull of the vessel. they should have. Article 730. unless this change should have been made by reason of force majeure. Article 725. Article. all that which constitutes the same shall be subject to the repayment. It said eight days should elapse without the record having been made in the corresponding registry. within twenty-four hours. The same procedure shall be observed with regard to the goods taken as loan. 3. The contracts made during a voyage shall be governed by the provision of Articles 583 and 611. The goods pledged to secure repayment. it shall be entered in the certificate of the registry of the vessel and shall be recorded in the registry of vessels. 723. Article 727. merchandise loaded. or though the fault or malice. In a contract on bottomry or respondentia the If the loan is constituted on the hull of the vessel. the balance shall 27 . If the loan is made on the cargo. 4. Proof of the loss as well as of the existence in the vessel of the Article 722. and domicile of the captain. Should the goods on which money is taken not be subjected to risk. following must be stated: 1. provisions. The kind. if the other owners or their agents should not have given their express authorization therefor or should not have taken part in the transaction. A loan in which under any condition whatever. The loans may be constituted jointly or separately: 1. 724. according to their nature. and they should not do so. 3. By means of a policy signed by the contracting paries and the broker taking part therein. except from the day and date of their inscription. if the vessel is a steamer. The loan which the captain takes at the point of residence of the owners of the vessel shall only affect . With respect to those executed in accordance with No. equipment and other goods. the preference which. and if on a particular object of the vessel or of the cargo. only the object concretely and specifically mentioned shall be liable. 4. they must con' form to the registry of the broker who took part therein. The voyage during which the risk is run.that part thereof which belongs to the captain. 2 may have binding force. equipment. if they should be recorded in the registry of vessels of the port of registry of the vessel before the lapse of eight lays following its arrival. 2. Loans may be made in goods and in merchandise. surnames. The surplus principal shall be returned with legal interests for the entire time required for repayment. Article 728. The loans for the last voyage shall have preference over prior ones. 2. steam engines. Loans made during the voyage shall have preference over those made before the clearing of the vessel. Should several loan have been made at the same port of arrival under stress and for the same purpose. all of them shall be paid pro rata. and registry of the vessel. If the lender should prove that he loaned an amount larger than the value of the object liable for the bottomry loan. No loans on bottomry may be made on the salaries of the crew or on the profits expected. Article 731. and the freightage earned during the voyage on which the loan is made shall also be considered as included in the liability for the loan. LOANS ON BOTTOMRY AND RESPONDENTIA Article 719. and shall be effective with regard to third persons from the date of their execution. Article 720. and the indorsee shall acquire all the rights and shall incur all the risks corresponding to the indorser. 5. 3 the acknowledgment of the signature shall be required. of the borrower. 7. By means of a public instrument. If the full amount of the loan contracted in order to load the vessel should not be used for the cargo. and domiciles of the person giving and the person receiving the loan. or if it arose from having loaded the merchandise on a vessel different from that designated in the contract. if that agreed upon should not be lower. The time for repayment. Article 729. and proven that the cargo was on board. rigging. or barratry on the part of the captain of or if it was caused by damages suffered by the vessel as a consequence of being engaged in contraband.

Should the period during which the lender shall run the risk not have been stated in the contract. in proportion to their respective interest. the value of what may be saved in case of shipwreck shall be divided between the lender and the insurer. in accordance with Article 580. and with regard to the merchandise. taking into consideration. Article 732. in proportion to the legitimate interest of each one. and without prejudice to the right of preference of other creditors. Article 736. the lender on bottomry or respondentia shall also contribute in proportion to his respective in the foregoing article. Article 733. In case of shipwreck. as far as it may reach. rigging. 28 . Lenders on bottomry or respondentia shall suffer. the general average which may take place in the goods on which the loan is made. Article 734. engines. from the time they are loaded at the shore or wharf of the port of shipment until they are unloaded in the port of consignment. the principal with respect of the loan. from the moment said vessel puts to sea until she drops anchor in the port of destination. only the former shall bear legal interest. for this purpose only. after deducting the costs of the salvage. in the absence of an express agreement between the contracting parties.goods declared to the lender as the object of the loan is incumbent upon him who received the loan. If the loan should be on the vessel or any of its parts. with regard to the vessel. the freightage earned during the voyage for which said loan was contracted shall also be liable for its payment. In particular averages. Article 735. it shall last. the amount liable for the payment of the loan shall be reduced to the proceeds of the goods saved. If the same vessel or cargo should be the object of a loan on bottomry or respondentia and marine insurance. and equipment. If there should be delay in repayment of the principal and premiums of the loan.

and marine insurance companies. be accepted. (b) The term "contract of carriage" applies only to contracts of carriage covered by a bill of lading or any similar document of title. Sec. (1) The carrier shall be bound. (4) Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods as therein described in accordance with paragraph (3)(a). before and at the beginning of the voyage. or as limiting its application. The right of the carrier to such indemnity shall in no way limit RESPONSIBILITIES AND LIABILITIES 29 . which is in consonance with modern maritime rules and the practices of the great shipping countries of the world. (2) The carrier shall properly and carefully load. October 22. Subject to the provisions of Section 6. the said Act of Congress contains advanced legislation. (b) Properly man. to exercise due diligence to — (a) Make the ship seaworthly. the primordial purpose of the said Acts is to bring about uniformity in ocean bills of lading and to give effect to the Brussels Treaty. damages. and the shipper shall indemnify the carrier against all loss. (b) Either the number of packages or pieces. carriage. of his section. WHEREAS. (c) The apparent order and condition of the goods: Provided. 2. This Act shall take effect upon its approval. on demand of the shipper. and weight as furnished by him. number. 1936. (e) The term "carriage of goods" covers the period from the time when the goods are loaded to the time when they are discharged from the ship. as furnished in writing by the shipper. and all other parts of the ship in which goods are carried. therefore. provided such marks are stamped or otherwise shown clearly upon the goods if uncovered. which are directly affected by such legislation. quantity. That every bill of lading or similar document of title which is evidence of a contract for the carriage of goods by sea to or from ports of the United States. keep. BE ACCEPTED. (c) Make the holds. merchandise. WHEREAS. in foreign trade. Be it enacted by the National Assembly of the Philippines: SECTION 1. number. WHEREAS. quantity. shall be subject to the responsibilities and liabilities and entitled to the rights and immunities hereinafter set forth. and articles of every kind whatsoever. as it is hereby accepted to be made applicable to all contracts for the carriage of goods by sea to and from Philippine ports in foreign trade. and discharge of such goods. shall have effect subject to the provisions of the Act. 65 AN ACT TO DECLARE THAT PUBLIC ACT NUMBERED FIVE HUNDRED AND TWENTY. fit and safe for their reception. carry. TITLE I SECTION 1. and (c). stowage. and expenses arising or resulting from inaccuracies in such particulars. and discharge the goods carried. custody. handle. under every contract of carriage of goods by sea. Sec. KNOWN AS "CARRIAGE OF GOODS BY SEA ACT.CARRIAGE OF GOODS BY SEA ACT Commonwealth Act No. (d) The term "ship" means any vessel used for the carriage of goods by sea. and preservation. including any bill of lading or any similar document as aforesaid issued under or pursuant to a charter party from the moment at which such bill of lading or similar document of title regulates the relations between a carrier and a holder of the same. That nothing in this Act shall be construed as repealing any existing provision of the Code of Commerce which is now in force. shipping companies. carriage. wares. the Seventy-fourth Congress of the United States enacted Public Act Numbered Five Hundred and twenty-one. and various chambers of commerce. 2. approved on April sixteenth.ONE. shall. the Government of the United States has left it to the Philippine Government to decide whether or not the said Act shall apply to carriage of goods by sea in foreign trade to and from Philippine ports. and supply the ship. refrigerating and cooling chambers. That the provisions of Public Act Numbered Five hundred and twenty-one of the Seventy-fourth Congress of the United States. Be it enacted by the Senate and House of Representatives of the United States of America is Congress assembled. That no carrier. (3) After receiving the goods into his carrier. care for. WHEREAS. handling. signed by the United States with other powers. Provided. or the master or agent of the carrier. except live animals and cargo which by the contract of carriage is stated as being carried on deck and is so carried. care. or the quantity or weight. or weight which he has reasonable ground for suspecting not accurately to represent the goods actually received or which he has had no reasonable means of checking. 3. entitled: "Carriage of Goods by Sea Act". have expressed their desire that said Congressional Act be made applicable and extended to the Philippines. master. Approved. shippers. (c) The term "goods" includes goods. stow. shall be bound to state or show in the bill of lading any marks. (5) The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of shipment of the marks. (b). or agent of the carrier." ENACTED BY THE SEVENTY-FOURTH CONGRESS OF THE UNITED STATES. the carrier in relation to the loading. insofar as such document relates to the carriage of goods by sea. in such a manner as should ordinarily remain legible until the end of the voyage. AS IT IS HEREBY ACCEPTED BY THE NATIONAL ASSEMBLY. nineteen hundred and thirty-six. equip. WHEREAS. issue to the shipper a bill of lading showing among other things — (a) The leading marks necessary for identification of the goods as the same are furnished in writing by the shipper before the loading of such goods starts. RISKS Sec. as the case may be. An Act Relating to the Carriage of Goods by Sea. When used in this Act — (a) The term "carrier" includes the owner or the charterer who enters into a contract of carriage with a shipper.

(k) Riots and civil commotions. pilot. quality. That nothing herein contained shall be construed to relieve a carrier from responsibility for the carrier's own acts. and (q) Any other cause arising without the actual fault and privity of the carrier and without the fault or neglect of the agents or servants of the carrier. (6) Unless notice of loss or damage and the general nature of such loss or damage be given in writing to the carrier or his agent at the port of discharge before or at the time of the removal of the goods into the custody of the person entitled to delivery thereof under the contract of carriage. The notice in writing need not be given if the state of the goods has at the time of their receipt been the subject of joint survey or inspection. dangers. however. or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with the goods. shall be null and void and of no effect. Said notice of loss or damage may be endorsed upon the receipt for the goods given by the person taking delivery thereof. (f) Act of public enemies. he shall surrender the same as against the issue of the "shipped" bill of lading. fault. carriage. master. arising from negligence. (1) Neither the carrier nor the ship shall be liable for loss or damages arising or resulting from unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship seaworthy. unless caused by the actual fault or privity of the carrier. master. and the carrier shall not be liable for any loss or damage resulting therefrom: Provided. and supplied. neglect. or failure in the duties and obligations provided in this section or lessening such liability otherwise than as provided in this Act. is not given as provided for in this section. or agent of the carrier to the shipper shall if the shipper so demands. (8) Any clause. (c) Perils. the carrier and the receiver shall give all reasonable facilities to each other for inspecting and tallying the goods. whether partial or general. and accidents of the sea or other navigable water. Provided. but at the option of the carrier such document of title may be noted at the port of shipment by the carrier. refrigerating and cool chambers. (d) Act of God. covenant. mariner. (1) Saving or attempting to save life or property at sea. or seizure under legal process.his responsibility and liability under the contract of carriage to any person other than the shipper. or the servants of the carrier in the navigation or in the management of the ship. (n) Insufficiency of packing. but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss or damage. In the case of any actual or apprehended loss or damage. RIGHT AND IMMUNITIES Sec. (3) The shipper shall not be responsible for loss or damage sustained by the carrier or the ship arising or resulting from any cause without the act. or servants. 4. his agent or representative. rulers. That if the shipper shall have previously taken up any document of title to such goods. be regarded as unreasonable. either apparent or concealed. (g) Arrest or restraint of princes. that fact shall not affect or prejudice the right of the shipper to bring suit within one year after the delivery of the goods or the date when the goods should have been delivered. (2) Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from — (a) Act. and preservation in accordance with the provisions of paragraph (1) of Section 3. (4) Any deviation in saving or attempting to save life or property at sea. In any event the carrier and the ship shall be discharged From all liability in respect of loss or damage unless suit it brought within one year after delivery of the goods or the date when the goods should have been delivered: Provided. (e) Act of war. equipped. or default of the master. If the loss or damage is not apparent. Whenever loss or damage has resulted from unseaworthiness. (m) Wastage in bulk or weight or any other loss or damage arising from inherent defect. (o) Insufficiency or inadequacy of marks. fault or neglect of the shipper. shall be deemed to be a clause relieving the carrier from liability. (5) Neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with the transportation of goods in an amount exceeding US$500 30 . Strikes or lockouts or stoppage or restraint of labor from whatever cause. the burden of proving the exercise of due diligence shall be on the carrier or other person claiming exemption under this section. (7) After the goods are loaded the bill of lading to be issued by the carrier. That if a notice of loss or damage. and to secure that the ship is properly manned. his agents. (p) Latent defects not discoverable by due diligence. That if the deviation is for the purpose of loading cargo or unloading cargo or passengers it shall. and to make to the holds. and all other parts of the ship in which goods are carried fit and safe for their reception. (h) Quarantine restrictions. or any reasonable deviation shall not be deemed to be an infringement or breach of his Act or of the contract of carriage. or similar clause. (i) (j) Act or omission of the shipper or owner of the goods. A benefit of insurance in favor of the carrier. or agent with name or names of the ship or ships upon which the goods have been shipped and the date or dates of shipment. prima facie. such removal shall be prima facie evidence of the delivery by the carrier of the goods as described in the bill of lading. or people. or vice of the goods. and when so noted the same shall for the purpose of this section be deemed to constitute a "shipped" bill of lading. (b) Fire. be a "shipped" bill of lading: Provided. the notice must be given within three days of the delivery.

containing an express statement that it shall be subject to the provisions of this Act. That in this case no bill of lading has been or shall be issued and that the terms agreed shall be a non-negotiable document and shall be marked as such. Provided. may at any time before discharge be landed at any place or destroyed or rendered innocuous by the carrier without compensation. By agreement between the carrier. or his obligation to seaworthiness (so far as the stipulation regarding seaworthiness is contrary to public policy). in regard to any particular goods be at liberty to enter into any agreement in any terms as to the responsibility and liability of the carrier for such goods. 12. as amended. As used in this Act the term "United States" includes its districts. a carrier. terms. That such maximum shall not be less than the figure above named. or in case of goods not shipped in packages. if embodied in the bill of lading. Sec. Where under the customs of any trade the weight of any bulk cargo inserted in the bill of lading is a weight ascertained or accepted by a third party other than the carrier or the shipper and the fact that the weight as ascertained or accepted is stated in the bill of lading. carriage. or (b) when issuing such bills of lading either in the surrender of any of the carrier's rights and immunities or in the increase of any of the carrier's responsibility and liabilities pursuant to Section 5. In no event shall the carrier be liable for more than the amount of damage actually sustained. 10. and a shipper shall. then notwithstanding anything in this Act. master or agent of the carrier. Title I. Nothing contained in this Act shall be construed as permitting a common carrier by water to discriminate between competing shippers similarly place in time and circumstances. explosive. and as to the rights and immunities of the carrier in respect to such goods. or (c) in any other way prohibited by the Shipping Act 1916. Sec. however. 8. master or agent of the carrier. Provided.per package lawful money of the United States. or the equivalent of that sum in other currency. has not consented with knowledge of their nature and charterer. A carrier shall be at liberty to surrender in whose or in part all or any of his rights and immunities or to increase any of his responsibilities and liabilities under this Act. the bill of lading shall not be deemed to be prima facie evidence against the carrier of the receipt of goods of the weight so inserted in the bill of lading. master or agent of the carrier. or dangerous nature to the shipment whereof. reservation. 9. SURRENDER OF RIGHTS AND IMMUNITIES AND INCREASE OF RESPONSIBILITIES AND LIABILITIES Sec. Nothing in this Act shall be held to apply to contracts for carriage of goods by sea between any port of the United States or its possessions. The term "foreign trade" means the transportation of goods between the ports of the United States and ports of foreign countries. or destroyed or rendered innocuous by the carrier without liability on the part of the carrier except to general average. and the shipper another maximum amount than that mentioned in this paragraph may be fixed: Provided. This declaration. Notwithstanding the provisions of the preceding section. however. and any other port of the United States or its possession: Provided. shall be prima facie evidence. or exemption as to the responsibility and liability of the carrier or the ship for the loss or damage to or in connection with the custody and care and handling of goods prior to the loading on and subsequent to the discharge from the ship on which the goods are carried by sea. of the Revised Statutes of the United States. (6) Goods of an inflammable. territories. shall be subjected hereto as fully as if subject hereto by the express provisions of this 31 . or under the provisions of Sections 4281 to 4289. condition. Nothing in this Act shall be held to prevent the insertion in a bill of lading of any lawful provisions regarding general average. 7. This Act shall apply to all contracts for carriage of goods by sea to or from ports of the United States in foreign trade. or of any amendments thereto. (Not applicable to the Philippines. and the accuracy thereof at the time of shipment shall not be deemed to have been guaranteed by the shipper. The provisions of this Act shall not be applicable to charter parties. 5. and conditions under which the carriage is to be performed are such as reasonably to justify a special agreement. That any bill of lading or similar document of title which is evidence of a contract for the carriage of goods by sea between such ports. provided such surrender or increase shall be embodied in the bill of lading issued to the shipper. Any agreement so entered into shall have fully legal effect. care and discharge of the goods carried by sea. they shall comply with the terms of this Act. 6. but if bills of lading are issued in the case of a ship under charter party. custody. or the care or diligence of his servants or agents in regard to the loading. and possessions. If any such goods shipped with such knowledge and consent shall become a danger to the ship or cargo. per customary freight unit. and the shipper of such goods shall be liable for all damages and expenses directly or indirectly arising out of or resulting from such shipment. SPECIAL CONDITIONS Sec. 13. stowage. they may in like manner be landed at any place. (Not applicable to the Philippines. of this Act. the carrier. inclusive. Nothing contained in this Act shall prevent a carrier or shipper from entering into any agreement. 11.) Sec. but shall not be conclusive on the carrier. The provisions of this Act shall not affect the rights and obligations of the carrier under the provisions of the Shipping Act 1916. Neither the carrier nor the ship shall be responsible in any event for loss or damage to or in connection with the transportation of the goods if the nature or value thereof has been knowingly and fraudulently misstated by the shipper in the bill of lading. either: (a) with respect to their right to demand and receive bills of lading subject to the provisions of this Act. TITLE II Sec. Sec. Provided. That this section shall not apply to ordinary commercial shipments made in the ordinary course of trade but only to other shipments where the character or condition of the property to be carried or the circumstances. unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading. or under the provisions of any other enactment for the time being in force relating to the limitation of the liability of the owners of seagoing vessels. stipulation. That the Philippine Legislature may by law exclude its application to transportation to or from ports of the Philippine Islands. if any.) Sec. Sec. handling.

made before the date on which this Act is approved nor to any bill of lading or similar document of title issued. Upon the certification of the Secretary of Commerce that the foreign commerce of the United States in its competition with that of foreign nations is prejudiced the provisions. further. or any part thereof." Approved. Sec. suspend any or all provisions of Title I of this Act for such periods of time or indefinitely as may be designated in the proclamation. 15. 16. whether before or after such date of approval in pursuance of any such contract as aforesaid. 14. shall contain a statement that it shall have effect subject to the provisions of this Act. but nothing in this Act shall apply during a period not to exceed one year following its approval to any contract for the carriage of goods by sea. or by the laws of any foreign country or countries relating to the carriage of goods by sea. and any provisions thereof which may have been suspended shall thereby be reinstated and again apply to contracts thereafter made for the carriage of goods by sea. of the Title I of this Act. Sec. This Act may be cited as the "Carriage of Goods by Sea Act. is suspended. shall be subject to all provisions of law now or hereafter applicable to that part of Title I which may have thus been suspended. effective during any period when Title I hereof. from time to time by proclamation. or any of them. Sec. the President of the United States may. subject to the provisions of this Act.Act: Provided. Any proclamation of suspension or rescission of any such suspension shall take effect on a date named therein. That every bill of lading or similar document of title which is evidence of a contract for the carriage of goods by sea from ports of the United States in foreign trade. The President may at any time rescind such suspension of Title I hereof. This Act shall take effect ninety days after the date of its approval. 32 . April 16. which date shall be not less than ten days from the issue of the proclamation. Any contract for the carriage of goods by sea. 1936.

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