CODE OF COMMERCE OF THE PHILIPPINES COMMERCIAL CONTRACTS FOR TRANSPORTATION ARTICLE 349.

A contract of transportation by land or water ways of any kind shall be considered commercial !. "hen it has for its ob#ect merchandise or any article of commerce.

$. "hen% whate&er its ob#ect may be% the carrier is a merchant or is habit'ally en(a(ed in transportation for the p'blic. ARTICLE 3)*. The shipper as well as the carrier of merchandise or (oods may m't'ally demand that a bill of ladin( be made% statin( !. $. The name% s'rname and residence of the shipper. The name% s'rname and residence of the carrier.

3. The name% s'rname and residence of the person to whom or to whose order the (oods are to be sent or whether they are to be deli&ered to the bearer of said bill. 4. The description of the (oods% with a statement of their kind% of their wei(ht% and of the e+ternal marks or si(ns of the packa(es in which they are contained. ). ,. -. .. The cost of transportation. The date on which shipment is made. The place of deli&ery to the carrier. The place and the time at which deli&ery to the consi(nee shall be made.

9. The indemnity to be paid by the carrier in case of delay% if there sho'ld be any a(reement on this matter. ARTICLE 3)!. In transportation made by railroads or other enterprises s'b#ect to re('lation rate and time sched'les% it shall be s'fficient for the bills of ladin( or the declaration of shipment f'rnished by the shipper to refer% with respect to the cost% time and special conditions of the carria(e% to the sched'les and re('lations the application of which he re/'ests0 and if the shipper does not determine the sched'le% the carrier m'st apply the rate of those which appear to be the lowest% with the conditions inherent thereto% always incl'din( a statement or reference to in the bill of ladin( which he deli&ers to the shipper. ARTICLE 3)$. The bills of ladin(% or tickets in cases of transportation of passen(ers% may be di&erse% some for persons and others for ba((a(e0 b't all of them shall bear the name of the carrier% the date of shipment% the points of depart're and arri&al% the cost% and% with respect to the ba((a(e% the n'mber and wei(ht of the packa(es% with s'ch other manifestations which may be considered necessary for their easy identification.

ARTICLE 3)3. The le(al e&idence of the contract between the shipper and the carrier shall be the bills of ladin(% by the contents of which the disp'tes which may arise re(ardin( their e+ec'tion and performance shall be decided% no e+ceptions bein( admissible other than those of falsity and material error in the draftin(. After the contract has been complied with% the bill of ladin( which the carrier has iss'ed shall be ret'rned to him% and by &irt'e of the e+chan(e of this title with the thin( transported% the respecti&e obli(ations and actions shall be considered cancelled% 'nless in the same act the claim which the parties may wish to reser&e be red'ced to writin(% with the e+ception of that pro&ided for in Article 3,,. In case the consi(nee% 'pon recei&in( the (oods% cannot ret'rn the bill of ladin( s'bscribed by the carrier% beca'se of its loss or of any other ca'se% he m'st (i&e the latter a receipt for the (oods deli&ered% this receipt prod'cin( the same effects as the ret'rn of the bill of ladin(. ARTICLE 3)4. In the absence of a bill of ladin(% disp'tes shall be determined by the le(al proofs which the parties may present in s'pport of their respecti&e claims% accordin( to the (eneral pro&isions established in this Code for commercial contracts. ARTICLE 3)). The responsibility of the carrier shall commence from the moment he recei&es the merchandise% personally or thro'(h a person char(ed for the p'rpose% at the place indicated for recei&in( them. ARTICLE 3),. Carriers may ref'se packa(es which appear 'nfit for transportation0 and if the carria(e is to be made by railway% and the shipment is insisted 'pon% the company shall transport them% bein( e+empt from all responsibility if its ob#ections% is made to appear in the bill of ladin(. ARTICLE 3)-. If by reason of well1fo'nded s'spicion of falsity in the declaration as to the contents of a packa(e the carrier sho'ld decide to e+amine it% he shall proceed with his in&esti(ation in the presence of witnesses% with the shipper or consi(nee in attendance. If the shipper or consi(nee who has to be cited does not attend% the e+amination shall be made before a notary% who shall prepare a memorand'm of the res'lt of the in&esti(ation% for s'ch p'rposes as may be proper. If the declaration of the shipper sho'ld be tr'e% the e+pense occasioned by the e+amination and that of caref'lly repackin( the packa(es shall be for the acco'nt of the carrier and in a contrary case for the acco'nt of the shipper. ARTICLE 3).. If there is no period fi+ed for the deli&ery of the (oods the carrier shall be bo'nd to forward them in the first shipment of the same or similar (oods which he may make point where he m'st deli&er them0 and sho'ld he not do so% the dama(es ca'sed by the delay sho'ld be for his acco'nt. ARTICLE 3)9. If there is an a(reement between the shipper and the carrier as to the road o&er which the con&eyance is to be made% the carrier may not chan(e the ro'te% 'nless it be by reason of force ma#e're0 and sho'ld he do so witho't this ca'se% he shall be liable for all the losses which the (oods he transports may s'ffer from any other ca'se% beside payin( the s'm which may ha&e been stip'lated for s'ch case. "hen on acco'nt of said ca'se of force ma#e're% the carrier had to take another ro'te

which prod'ced an increase in transportation char(es% he shall be reimb'rsed for s'ch increase 'pon formal proof thereof. ARTICLE 3,*. The shipper% witho't chan(in( the place where the deli&ery is to be made% may chan(e the consi(nment of the (oods which he deli&ered to the carrier% pro&ided that at the time of orderin( the chan(e of consi(nee the bill of ladin( si(ned by the carrier% if one has been iss'ed% be ret'rned to him% in e+chan(e for another wherein the no&ation of the contract appears. The e+penses which this chan(e of consi(nment occasions shall be for the acco'nt of the shipper. ARTICLE 3,!. 2The merchandise shall be transported at the risk and &ent're of the shipper% if the contrary has not been e+pressly stip'lated. As a conse/'ence% all the losses and deteriorations which the (oods may s'ffer d'rin( the transportation by reason of fort'ito's e&ent% force ma#e're% or the inherent nat're and defect of the (oods% shall be for the acco'nt and risk of the shipper. cdta 3roof of these accidents is inc'mbent 'pon the carrier.4 ARTICLE 3,$. 5e&ertheless% the carrier shall be liable for the losses and dama(es res'ltin( from the ca'ses mentioned in the precedin( article if it is pro&ed% as a(ainst him% that they arose thro'(h his ne(li(ence or by reason of his ha&in( failed to take the preca'tions which 'sa(e has established amon( caref'l persons% 'nless the shipper has committed fra'd in the bill of ladin(% representin( the (oods to be of a kind or /'ality different from what they really were. If% notwithstandin( the preca'tions referred to in this article% the (oods transported r'n the risk of bein( lost% on acco'nt of their nat're or by reason of 'na&oidable accident% there bein( no time for their owners to dispose of them% the carrier may proceed to sell them% placin( them for this p'rpose at the disposal of the #'dicial a'thority or of the officials desi(nated by special pro&isions. ARTICLE 3,3. 6'tside of the cases mentioned in the second para(raph of Article 3,!% the carrier shall be obli(ed to deli&er the (oods shipped in the same condition in which% accordin( to the bill of ladin(% they were fo'nd at the time they were recei&ed% witho't any dama(e or impairment% and failin( to do so% to pay the &al'e which those not deli&ered may ha&e at the point and at the time at which their deli&ery sho'ld ha&e been made. If those not deli&ered form part of the (oods transported% the consi(nee may ref'se to recei&e the latter% when he pro&es that he cannot make 'se of them independently of the others. ARTICLE 3,4. If the effect of the dama(e referred to in Article 3,! is merely a dimin'tion in the &al'e of the (oods% the obli(ation of the carrier shall be red'ced to the payment of the amo'nt which% in the #'d(ment of e+perts% constit'tes s'ch difference in &al'e.

ARTICLE 3,). If% in conse/'ence of the dama(e% the (oods are rendered 'seless for sale and cons'mption for the p'rposes for which they are properly destined% the consi(nee shall not be bo'nd to recei&e them% and he may ha&e them in the hands of the carrier% demandin( of the latter their &al'e at the c'rrent price on that day. If amon( the dama(ed (oods there sho'ld be some pieces in (ood condition and witho't any defect% the fore(oin( pro&ision shall be applicable with respect to those dama(ed and the consi(nee shall recei&e those which are so'nd% this se(re(ation to be made by distinct and separate pieces and witho't di&idin( a sin(le ob#ect% 'nless the consi(nee pro&es the impossibility of con&eniently makin( 'se of them in this form. The same r'le shall be applied to merchandise in bales or packa(es% separatin( those parcels which appear so'nd. ARTICLE 3,,. "ithin the twenty1fo'r ho'rs followin( the receipt of the merchandise% the claim a(ainst the carrier for dama(e or a&era(e be fo'nd therein 'pon openin( the packa(es% may be made% pro&ided that the indications of the dama(e or a&era(e which (i&es rise to the claim cannot be ascertained from the o'tside part of s'ch packa(es% in which case the claim shall be admitted only at the time of receipt. After the periods mentioned ha&e elapsed% or the transportation char(es ha&e been paid% no claim shall be admitted a(ainst the carrier with re(ard to the condition in which the (oods transported were deli&ered. ARTICLE 3,-. If do'bts and disp'tes sho'ld arise between the consi(nee and the carrier with respect to the condition of the (oods transported at the time their deli&ery to the former is made% the (oods shall be e+amined by e+perts appointed by the parties% and% in case of disa(reement% by a third one appointed by the #'dicial a'thority% the res'lts to be red'ced to writin(0 and if the interested parties sho'ld not a(ree with the e+pert opinion and they do not settle their differences% the merchandise shall be deposited in a safe wareho'se by order of the #'dicial a'thority% and they shall e+ercise their ri(hts in the manner that may be proper. ARTICLE 3,.. The carrier m'st deli&er to the consi(nee% witho't any delay or obstr'ction% the (oods which he may ha&e recei&ed% by the mere fact of bein( named in the bill of ladin( to recei&e them0 and if he does not do so% he shall be liable for the dama(es which may be ca'sed thereby. ARTICLE 3,9. If the consi(nee cannot be fo'nd at the residence indicated in the bill of ladin(% or if he ref'ses to pay the transportation char(es and e+penses% or if he ref'ses to recei&e the (oods% the m'nicipal #'d(e% where there is none of the first instance% shall pro&ide for their deposit at the disposal of the shipper% this deposit prod'cin( all the effects of deli&ery witho't pre#'dice to third parties with a better ri(ht. ARTICLE 3-*. If a period has been fi+ed for the deli&ery of the (oods% it m'st be made within s'ch time% and% for fail're to do so% the carrier shall pay the indemnity stip'lated in the bill of ladin(% neither the shipper nor the consi(nee bein( entitled to anythin( else.

If no indemnity has been stip'lated and the delay e+ceeds the time fi+ed in the bill of ladin(% the carrier shall be liable for the dama(es which the delay may ha&e ca'sed. ARTICLE 3-!. In case of delay thro'(h the fa'lt of the carrier% referred to in the precedin( articles% the consi(nee may lea&e the (oods transported in the hands of the former% ad&isin( him thereof in writin( before their arri&al at the point of destination. "hen this abandonment takes place% the carrier shall pay the f'll &al'e of the (oods as if they had been lost or mislaid. If the abandonment is not made% the indemnification for losses and dama(es by reason of the delay cannot e+ceed the c'rrent price which the (oods transported wo'ld ha&e had on the day and at the place in which they sho'ld ha&e been deli&ered0 this same r'le is to be obser&ed in all other cases in which this indemnity may be d'e. ARTICLE 3-$. The &al'e of the (oods which the carrier m'st pay in cases if loss or misplacement shall be determined in accordance with that declared in the bill of ladin(% the shipper not bein( allowed to present proof that amon( the (oods declared therein there were articles of (reater &al'e and money. 7orses% &ehicles% &essels% e/'ipment and all other principal and accessory means of transportation shall be especially bo'nd in fa&or of the shipper% altho'(h with respect to railroads said liability shall be s'bordinated to the pro&isions of the laws of concession with respect to the property% and to what this Code established as to the manner and form of effectin( sei8'res and attachments a(ainst said companies. ARTICLE 3-3. The carrier who makes the deli&ery of the merchandise to the consi(nee by &irt'e of combined a(reements or ser&ices with other carriers shall ass'me the obli(ations of those who preceded him in the con&eyance% reser&in( his ri(ht to proceed a(ainst the latter if he was not the party directly responsible for the fa'lt which (a&e rise to the claim of the shipper or consi(nee. The carrier who makes the deli&ery shall likewise ac/'ire all the actions and ri(hts of those who preceded him in the con&eyance. The shipper and the consi(nee shall ha&e an immediate ri(ht of action a(ainst the carrier who e+ec'ted the transportation contract% or a(ainst the other carriers who may ha&e recei&ed the (oods transported witho't reser&ation. 7owe&er% the reser&ation made by the latter shall not relie&e them from the responsibilities which they may ha&e inc'rred by their own acts. ARTICLE 3-4. The consi(nees to whom the shipment was made may not defer the payment of the e+penses and transportation char(es of the (oods they recei&e after the lapse of twenty1fo'r ho'rs followin( their deli&ery0 and in case of delay in this payment% the carrier may demand the #'dicial sale of the (oods transported in an amo'nt necessary to co&er the cost of transportation and the e+penses inc'rred. ARTICLE 3-). The (oods transported shall be especially bo'nd to answer for the cost of transportation and for the e+penses and fees inc'rred for them d'rin( their con&eyance and 'ntil the moment of their deli&ery. This special ri(ht shall prescribe ei(ht days after the deli&ery has been made% and once

prescribed% the carrier shall ha&e no other action than that correspondin( to him as an ordinary creditor. ARTICLE 3-,. The preference of the carrier to the payment of what is owed him for the transportation and e+penses of the (oods deli&ered to the consi(nee shall not be c't off by the bankr'ptcy of the latter% pro&ided it is claimed within the ei(ht days mentioned in the precedin( article. ARTICLE 3--. The carrier shall be liable for all the conse/'ences which may arise from his fail're to comply with the formalities prescribed by the laws and re('lations of the p'blic administration% d'rin( the whole co'rse of the trip and 'pon arri&al at the point of destination% e+cept when his fail're arises from ha&in( been led into error by falsehood on the part of the shipper in the declaration of the merchandise. If the carrier has acted by &irt'e of a formal order of the shipper or consi(nee of the merchandise% both shall become responsible. ARTICLE 3-.. A(ents for transportation shall be obli(ed to keep a special re(istry% with the formalities re/'ired by Article 3,% in which all the (oods the transportation of which is 'ndertaken shall be entered in consec'ti&e order of n'mber and dates% with a statement of the circ'mstances re/'ired in Article 3)* and others followin( for the respecti&e bills of ladin(. ARTICLE 3-9. The pro&isions contained in Articles 349 and followin( shall be 'nderstood as e/'ally applicable to those who% altho'(h they do not personally effect the transportation of the merchandise% contract to do so thro'(h others% either as contractors for a partic'lar and definite operation% or as a(ents for transportations and con&eyances. In either case they shall be s'bro(ated in the place of the carriers themsel&es% with respect to the obli(ations and responsibility of the latter% as well as with re(ard to their ri(hts. MARITIME COMMERCE TITLE ONE VESSELS ARTICLE )-3. 9erchant &essels constit'te property which may be ac/'ired and transferred by any of the means reco(ni8ed by law. The ac/'isition of a &essel m'st appear in a written instr'ment% which shall not prod'ce any effect with respect to third persons if not inscribed in the re(istry of &essels. The ownership of a &essel shall likewise be ac/'ired by possession in (ood faith% contin'ed for three years% with a #'st title d'ly recorded. In the absence of any of these re/'isites% contin'o's possession for ten years shall be necessary in order to ac/'ire ownership. A captain may not ac/'ire by prescription the &essel of which he is in command.

ARTICLE )-4. :'ilders of &essels may employ the materials and follow% with respect to their constr'ction and ri((in(% the systems most s'itable to their interests. ;hip owners and seamen shall be s'b#ect to what the laws and re('lations of the p'blic administration on na&i(ation% c'stoms% health% safety of &essels% and other similar matters. ARTICLE )-). Co1owners of &essels shall ha&e the ri(ht of rep'rchase and redemption in sales made to stran(ers% b't they may e+ercise the same only within the nine days followin( the inscription of the sale in the re(istry% and by depositin( the price at the same time. ARTICLE )-,. In the sale of a &essel it shall always be 'nderstood as incl'ded the ri((in(% masts% stores and en(ine of a streamer app'rtenant thereto% which at the time belon(s to the &endor. The arms% m'nitions of war% pro&isions and f'el shall not be considered as incl'ded in the sale. The &endor shall be 'nder the obli(ation to deli&er to the p'rchaser a certified copy of the record sheet of the &essel in the re(istry 'p to the date of the sale. ARTICLE )--. If the alienation of the &essel sho'ld be made while it is on a &oya(e% the frei(hta(e which it earns from the time it recei&es its last car(o shall pertain entirely to the p'rchaser% and the payment of the crew and other persons who make 'p its complement for the same &oya(e shall be for his acco'nt. If the sale is made after the &essel has arri&ed at the port of its destination% the frei(hta(e shall pertain to the &endor% and the payment of the crew and other indi&id'als who make 'p its complement shall be for his acco'nt% 'nless the contrary is stip'lated in either case. ARTICLE )-.. If the &essel bein( on a &oya(e or in a forei(n port% its owner or owners sho'ld &ol'ntarily alienate it% either to <ilipinos or to forei(ners domiciled in the capital or in a port of another co'ntry% the bill of sale shall be e+ec'ted before the cons'l of the Rep'blic of the 3hilippines at the port where it terminates its &oya(e and said instr'ment shall prod'ce no effect with respect to third persons if it is not inscribed in the re(istry of the cons'late. The cons'l shall immediately forward a tr'e copy of the instr'ment of p'rchase and sale of the &essel to the re(istry of &essels of the port where said &essel is inscribed and re(istered. In e&ery case the alienation of the &essel m'st be made to appear with a statement of whether the &endor recei&es its price in whole or in part% or whether he preser&es in whole or in part any claim on said &essel. In case the sale is made to a <ilipino% this fact shall be stated in the certificate of na&i(ation. "hen a &essel% bein( on a &oya(e% shall be rendered 'seless for na&i(ation% the captain shall apply to the competent #'d(e on co'rt of the port of arri&al% sho'ld it be in the 3hilippines0 and sho'ld it be in a forei(n co'ntry% to the cons'l of the Rep'blic of the 3hilippines% sho'ld there be one% or% where there is none% to the #'d(e or co'rt or to the

local a'thority0 and the cons'l% or the #'d(e or co'rt% shall order an e+amination of the &essel to be made. If the consi(nee or the ins'rer sho'ld reside at said port% or sho'ld ha&e representati&es there% they m'st be cited in order that they may take part in the proceedin(s on behalf of whoe&er may be concerned. ARTICLE )-9. After the dama(e to the &essel and the impossibility of her bein( repaired% in order to contin'e the &oya(e had been shown% its sale at p'blic a'ction shall be ordered% s'b#ect to the followin( r'les !. The h'll of the &essel% its ri((in(% en(ines% stores% and other articles shall be appraised% after makin( an in&entory% said proceedin(s to be bro'(ht to the notice of the persons who may wish to take part in the a'ction. $. The order or decree orderin( the a'ction to be held shall be posted in the 's'al places% an anno'ncement thereof to be inserted in the 6fficial =a8ette and in two of the newspapers of the lar(est circ'lation of the port where the a'ction is to be held% sho'ld there be any. The period which may be fi+ed for the a'ction shall not be less than twenty days. 3. These anno'ncements shall be repeated e&ery ten days% and their p'blication shall be made to appear in the records. 4. The a'ction shall be held on the day fi+ed% with the formalities prescribed in the common law for #'dicial sales. ). If the sale sho'ld take place while the &essel is in a forei(n co'ntry% the special pro&isions (o&ernin( s'ch cases shall be obser&ed. ARTICLE ).*. In all #'dicial sales of any &essel for the payment of creditors% the followin( shall ha&e preference in the order stated !. The credit in fa&or of the p'blic treas'ry pro&en by means of an official certificate of competent a'thority. $. The #'dicial costs of the proceedin(s% accordin( to an appraisement appro&ed by the #'d(e or co'rt. 3. The pilota(e char(es% tonna(e d'es% and the other sea or port char(es% pro&en by means of proper certificates of the officers intr'sted with the collection thereof. 4. The salaries of the depositaries and keepers of the &essel and any other e+penses for its preser&ation from the time of arri&al at the port 'ntil the sale% which appear to ha&e been paid or be d'e by &irt'e of an acco'nt &erified and appro&ed by the #'d(e or co'rt. ). The rent of the wareho'se where the ri((in( and stores of the &essel ha&e been taken care of% accordin( to contract. ,. The salaries d'e the captain and crew d'rin( its last &oya(e% which shall be &erified by means of the li/'idation to be made in &iew of the lists and of the books of acco'nt of the &essel% appro&ed by the chief of the :'rea' of 9erchant 9arine% where there is one% and in his absence by the cons'l or #'d(e or co'rt. -. The reimb'rsement for the (oods of the frei(ht which the captain may ha&e sold in order to repair the &essel% pro&ided that the sale has been ordered thro'(h a #'dicial

proceedin(s held with the formalities re/'ired in s'ch cases% and recorded in the certificate of re(istry of the &essel. .. The part of the price which has not been paid to the said &endor% the 'npaid credits for materials and labor in the constr'ction of the &essel% when it has not na&i(ated% and those arisin( from the repair and e/'ipment of the &essels and from its pro&isionin( with &ict'als and f'el d'rin( the last &oya(e. In order that the credits pro&ided for in this s'bdi&ision may en#oy this preference% they m'st appear by contracts recorded in the re(istry of &essels% or if they were contracted for the &essel while on a &oya(e and said &essel has not ret'rned to the port where it is re(istered% they m'st be made with the a'thori8ation re/'ired for s'ch cases and annotated in the certificate of re(istration of the &essel. 9. The amo'nt borrowed on bottomry on the h'll% keel% tackle% and stores of the &essel before its depart're% pro&en by means of the contract e+ec'ted accordin( to law and recorded in the re(istry of &essels0 those borrowed d'rin( the &oya(e with the a'thori8ation mentioned in the precedin( s'bdi&ision% satisfyin( the same re/'isites0 and the ins'rance premi'm% pro&en by the ins'rance policy or a certificate taken from the books of the broker. !*. The indemnity d'e the shipper for the &al'e of the (oods shipped which were not deli&ered to the consi(nees% or for a&era(es s'ffered for which the &essel is liable% pro&ided that either appear in a #'dicial or arbitration decision. ARTICLE ).!. If the proceeds of the sale sho'ld not be s'fficient to pay all the creditors incl'ded in one n'mber or (rade% the resid'e shall be di&ided amon( them pro rata. ARTICLE ).$. After the bill of the #'dicial sale at p'blic a'ction has been e+ec'ted and inscribed in the re(istry of &essels% all the other liabilities of the &essel in fa&or of the creditors shall be considered e+tin('ished. :'t if the sale sho'ld ha&e been &ol'ntary and sho'ld ha&e been made while the &essel was on a &oya(e% the creditors shall preser&e their ri(hts a(ainst the &essel 'ntil it ret'rns to the port of her re(istry% and three months after the inscription of the sale in the re(istry of &essel or the arri&al. ARTICLE ).3. If while on a &oya(e the captain sho'ld find it necessary to contract one or more of the obli(ations mentioned in s'bdi&isions . and 9 of Article ).*% he shall apply to the #'d(e or co'rt if he is in 3hilippine territory% and otherwise to the cons'l of the Rep'blic of the 3hilippines% sho'ld there be one% and% in his absence% to the #'d(e or co'rt or proper local a'thority% presentin( the certificate of the re(istration sheet treated of in Article ,!$ and the instr'ments pro&in( the obli(ation contracted. The #'d(e or co'rt% the cons'l% or the local a'thority% as the case may be% in &iew of the res'lt of the proceedin(s instit'ted% shall make a temporary memorand'm of their res'lt in the certificate% in order that it may be recorded in the re(istry when the &essel ret'rns to the port of its re(istry% or so that it can be admitted as a le(al and preferred obli(ation in case of sale before its ret'rn% by reason of the sale of the &essel on acco'nt of a declaration of 'nseaworthiness. The omission of this formality shall make the captain personally liable for the credits pre#'diced on his acco'nt.

ARTICLE ).4. The &essels s'b#ect to liability for the credits mentioned in Article ).* may be attached and #'dicially sold in the manner prescribed in Article )-9% in the port in which they may be fo'nd% at the instance of any of the creditors0 b't if they sho'ld be loaded and ready to sail% the attachment may not be effected e+cept for debts contracted to prepare and pro&ision the &essel for the same &oya(e% and e&en then the attachment shall be dissol&ed if any person interested in its sailin( sho'ld (i&e a bond for the ret'rn of the &essel within the period fi+ed in the certificate of na&i(ation bindin( himself to pay the indebtedness insofar as it may be le(al% sho'ld it fail to do so% e&en if this fail're be d'e to fort'ito's e&ent. <or debts of any other kind whatsoe&er not comprised within the said Article ).*% the &essel may be attached only in the port of her re(istry. ARTICLE ).). <or all p'rposes of law not modified or restricted by the pro&isions of this Code% &essels shall contin'e to be considered as personal property. TITLE TWO PERSONS WHO TAKE PART IN MARITIME COMMERCE SECTION ONE SHIPOWNERS AND SHIP AGENTS ARTICLE ).,. The shipowner and the ship a(ent shall be ci&illy liable for the acts of the captain and for the obli(ations contracted by the latter to repair% e/'ip% and pro&ision the &essel% pro&ided the creditor pro&es that the amo'nt claimed was in&ested for the benefit of the same. :y ship a(ent is 'nderstood the person entr'sted with pro&isionin( or representin( the &essel in the port in which it may be fo'nd. ARTICLE ).-. The ship a(ent shall also be ci&illy liable for the indemnities in fa&or of third persons which may arise from the cond'ct of the captain in the care of the (oods which he loaded on the &essel0 b't he may e+empt himself therefrom by abandonin( the &essel with all her e/'ipments and the frei(ht it may ha&e earned d'rin( the &oya(e. ARTICLE )... 5either the shipowner nor the ship a(ent shall be liable for the obli(ations contracted by the captain% if the latter e+ceeds the powers and pri&ile(es pertainin( to him by reason of his position or conferred 'pon him by the former. 5e&ertheless% if the amo'nts claimed were in&ested for the benefit of the &essel% the responsibility therefor shall de&ol&e 'pon its owner or a(ent. ARTICLE ).9. If two or more persons sho'ld be part owners of a merchant &essel% a partnership shall be pres'med as established by the co1owners. This partnership shall be (o&erned by the resol'tions of the ma#ority of the members. If the part owners sho'ld not be more than two% the disa(reement of &iews% if any% shall be decided by the &ote of the member ha&in( the lar(est interest. If the interests are e/'al% it sho'ld be decided by lot.

The person ha&in( the smallest share in the ownership shall ha&e one &ote0 and proportionately the other part owners as many &otes as they ha&e parts e/'al to the smallest one. aisadc A &essel may not be detained% attached or le&ied 'pon in e+ec'tion in its entirety% for the pri&ate debts of a part owner% b't the proceedin(s shall be limited to the interest which the debtor may ha&e in the &essel% witho't interferin( with the na&i(ation. ARTICLE )9*. The co1owners of a &essel shall be ci&illy liable in the proportion of their interests in the common f'nd% for the res'lts of the acts of the captain% referred to in Article ).-. Each co1owner may e+empt himself from this liability by the abandonment% before a notary% of the part of the &essel belon(in( to him. ARTICLE )9!. All the part owners shall be liable% in proportion to their respecti&e ownership% for the e+penses for repairin( the &essel% and for other e+penses which are inc'rred by &irt'e of a resol'tion of the ma#ority. They shall likewise be liable in the same proportion for the e+penses for the maintenance% e/'ipment% and pro&isionin( of the &essel% necessary for na&i(ation. ARTICLE )9$. The resol'tion of the ma#ority with re(ard to the repair% e/'ipment% and pro&isionin( of the &essel in the port of depart're shall bind the minority% 'nless the minority members reno'nce their interests% which m'st be ac/'ired by the other co1 owners% after a #'dicial appraisement of the &al'e of the portion or portions assi(ned. The resol'tions of the ma#ority relatin( to the dissol'tion of the partnership and sale of the &essel shall also be bindin( on the minority. The sale of the &essel m'st be made at p'blic a'ction% s'b#ect to the pro&isions of the law of ci&il proced're% 'nless the co1owners 'nanimo'sly a(ree otherwise% sayin( always the ri(ht of rep'rchase and redemption pro&ided for in Article )-). ARTICLE )93. The owners of a &essel shall ha&e preference in her charter o&er other persons% 'nder the same conditions and price. If two or more of them sho'ld claim this ri(ht% the one ha&in( the (reater interest shall be preferred0 and sho'ld they ha&e e/'al interests% the matter shall be decided by lot ARTICLE )94. The co1owners shall elect the mana(er who is to represent them in the capacity of ship a(ent. The appointment of director or ship a(ent shall be re&ocable at the will of the members. ARTICLE )9). The ship a(ent% whether he is at the same time the owner of the &essel% or a mana(er for an owner or for an association of co1owners% m'st ha&e the capacity to trade and m'st be recorded in the merchant>s re(istry of the pro&ince. The ship a(ent shall represent the ownership of the &essel% and may% in his own name and in s'ch capacity% take #'dicial and e+tra#'dicial steps in matters relatin( to commerce.

ARTICLE )9,. The ship a(ent may dischar(e the d'ties of captain of the &essel% s'b#ect in e&ery case to the pro&ision of Article ,*9. If two or more co1owners apply for the position of captain% the disa(reement shall be decided by a &ote of the members0 and if the &ote sho'ld res'lt in a tie% it shall be decided in fa&or of the co1owner ha&in( the lar(er interest in the &essel. If the interests of the applicants sho'ld be e/'al% and there sho'ld be a tie% the matter shall be decided by lot. ARTICLE )9-. The ship a(ent shall desi(nate and come to terms with the captain% and shall contract in the name of the owners% who shall be bo'nd in all that refer to repairs% details of e/'ipment% armament% pro&isions of food and f'el% and frei(ht of the &essel% and% in (eneral% in all that relate to the re/'irements of na&i(ation. ARTICLE )9.. The ship a(ent may not order a new &oya(e% or make contracts for a new charter% or ins're the &essel% witho't the a'thori8ation of its owner or resol'tion of the ma#ority of the coowners% 'nless these powers were (ranted him in the certificate of his appointment. cdasia If he ins'res the &essel witho't a'thori8ation therefore% he shall be s'bsidiarily liable for the sol&ency of the ins'rer. ARTICLE )99. The ship a(ent mana(in( for an association shall render to his associates an acco'nt of the res'lts of each &oya(e of the &essel% witho't pre#'dice to always ha&in( the books and correspondence relatin( to the &essel and to its &oya(es at their disposal. ARTICLE ,**. After the acco'nt of the mana(in( a(ent has been appro&ed by a relati&e ma#ority% the co1owners shall pay the e+penses in proportion to their interest% witho't pre#'dice to the ci&il or criminal actions which the minority may deem fit to instit'te afterwards. In order to enforce the payment% the mana(in( a(ent shall be entitled to an e+ec'tory action ?@accion e#ec'ti&a@A% which shall be instit'ted by &irt'e of a resol'tion of the ma#ority% and witho't f'rther proceedin(s than the acknowled(ment of the si(nat'res of the persons who &oted for the resol'tion. ARTICLE ,*!. ;ho'ld there be any profits% the co1owners may demand of the mana(in( a(ent the amo'nt correspondin( to their interests by means of an e+ec'tory action ?@accion e#ec'ti&a@A% witho't any other re/'isite than the acknowled(ment of the si(nat'res on the instr'ment appro&in( the acco'nt. ARTICLE ,*$. The ship a(ent shall indemnify the captain for all the e+penses he may ha&e inc'rred with f'nds of his own or of others% for the benefit of the &essel. ARTICLE ,*3. :efore the &essel sets o't to sea the ship a(ent may at his discretion dischar(e the captain and members of the crew whose contracts are not for a definite period or &oya(e% payin( them the salaries earned accordin( to their contracts% and

witho't any indemnity whatsoe&er% 'nless there is an e+press and specific a(reement in respect thereto. ARTICLE ,*4. If the captain or any other member of the crew sho'ld be dischar(ed d'rin( the &oya(e% they shall recei&e their salary 'ntil they ret'rn to the port where the contract was made% 'nless there sho'ld be #'st ca'se for the dischar(e% all in accordance with Article ,3, and followin( of this Code. ARTICLE ,*). If the contracts of the captain and members of the crew with the ship a(ent sho'ld be for a definite period or &oya(e% they may not be dischar(ed 'ntil after the f'lfillment of their contracts% e+cept by reason of ins'bordination in serio's matters% robbery% theft% habit'al dr'nkenness% or dama(e ca'sed to the &essel or to its car(o thro'(h malice or manifest or pro&en ne(li(ence. ARTICLE ,*,. If the captain sho'ld be a co1owner of the &essel% he may not be dischar(ed 'nless the ship a(ent ret'rns to him the amo'nt of his interest therein% which% in the absence of a(reement between the parties% shall be appraised by e+perts appointed in the manner established in the law of ci&il proced're. ARTICLE ,*-. If the captain who is a co1owner sho'ld ha&e obtained the command of the &essel by &irt'e of a special a(reement contained in the articles of association% he may not be depri&ed of his office e+cept for the ca'ses mentioned in Article ,*). ARTICLE ,*.. In case of the &ol'ntary sale of the &essel% all contracts between the ship a(ent and the captain shall terminate% reser&in( to the latter his ri(ht to the indemnity which may pertain to him% accordin( to the a(reements made with the ship a(ent. They &essel sold shall remain s'b#ect to the sec'rity of the payment of said indemnity if% after the action a(ainst the &endor has been instit'ted% the latter is fo'nd to be insol&ent. SECTION TWO CAPTAINS AND MASTERS OF VESSELS ARTICLE ,*9. Captains% masters or patrons of &essels m'st be <ilipinos% ha&e le(al capacity to contract in accordance with this code% and pro&e the skill% capacity% and /'alifications necessary to command and direct the &essel% as established by marine or na&i(ation laws% ordinances% or re('lations% and m'st not be dis/'alified accordin( to the same for the dischar(e of the d'ties of the position. If the owner of a &essel desires to be the captain thereof% witho't ha&in( the le(al /'alifications therefor% he shall limit himself to the financial administration of the &essel% and shall intr'st the na&i(ation to a person possessin( the /'alifications re/'ired by said ordinances and re('lations.

ARTICLE ,!*. The followin( powers shall be inherent in the position of captain% master or patron of a &essel !. To appoint or make contracts with the crew in the absence of the ship a(ent% and to propose said crew% sho'ld said a(ent be present0 b't the ship a(ent may not employ any member a(ainst the captain>s e+press ref'sal. $. To command the crew and direct the &essel to the port of its destination% in accordance with the instr'ctions he may ha&e recei&ed from the ship a(ent. 3. To impose% in accordance with the contracts and with the laws and re('lations of the merchant marine% and when on board the &essel% correctional p'nishment 'pon those who fail to comply with his orders or are wantin( in discipline% holdin( a preliminary hearin( on the crimes committed on board the &essel on the seas% which crimes shall be t'rned o&er to the a'thorities ha&in( #'risdiction o&er the same at the first port to'ched. 4. To make contracts for the charter of the &essel in the absence of the ship a(ent or of its consi(nee% actin( in accordance with the instr'ctions recei&ed and protectin( the interests of the owner with 'tmost care. ). To adopt all proper meas'res to keep the &essel well s'pplied and e/'ipped% p'rchasin( all that may be necessary for the p'rpose% pro&ided there is no time to re/'est instr'ction from the ship a(ent. ,. To order% in similar 'r(ent cases while on a &oya(e% the repairs on the h'll and en(ines of the &essel and in its ri((in( and e/'ipment% which are absol'tely necessary to enable it to contin'e and finish its &oya(e0 b't if he sho'ld arri&e at a point where there is a consi(nee of the &essel% he shall act in conc'rrence with the latter. ARTICLE ,!!. In order to comply with the obli(ations mentioned in the precedin( article% the captain% when he has no f'nds and does not e+pect to recei&e any from the ship a(ent% shall obtain the same in the s'ccessi&e order stated below !. :y re/'estin( said f'nds from the consi(nee of the &essel or correspondents of the ship a(ent. $. :y applyin( to the consi(nees of the car(o or to those interested therein. 3. :y drawin( on the ship a(ent. 4. :y borrowin( the amo'nt re/'ired by means of a loan on bottomry. ). :y sellin( a s'fficient amo'nt of the car(o to co&er the s'm absol'tely indispensable for the repair of the &essel and to enable it to contin'e its &oya(e. cd In these two last cases he m'st apply to the #'dicial a'thority of the port% if in the 3hilippines% and to the cons'l of the Rep'blic of the 3hilippines if in a forei(n co'ntry% and where there is none% to the local a'thority% proceedin( in accordance with the pro&isions of Article ).3% and with the pro&isions of the law of ci&il proced're. ARTICLE ,!$. The followin( obli(ations shall be inherent in the office of captain !. To ha&e on board before startin( on a &oya(e a detailed in&entory of the h'll% en(ines% ri((in(% spare1masts% tackle% and other e/'ipment of the &essel0 the royal or the na&i(ation certificate0 the roll of the persons who make 'p the crew of the &essel%

and the contracts entered into with them0 the lists of passen(ers0 the bill of health0 the certificate of the re(istry pro&in( the ownership of the &essel and all the obli(ations which enc'mber the same 'p to that date0 the charter parties or a'thenticated copies thereof0 the in&oices or manifests of the car(o% and the memorand'm of the &isit or inspection by e+perts% sho'ld it ha&e been made at the port of depart're. $. To ha&e a copy of this code on board. 3. To ha&e three folioed and stamped books% placin( at the be(innin( of each one a memorand'm of the n'mber of folios it contains% si(ned by the maritime a'thority% and in his absence by the competent a'thority. In the first book% which shall be called @lo( book%@ he shall enter day by day the condition of the atmosphere% the pre&ailin( winds% the co'rses taken% the ri((in( carried% the power of the en(ines 'sed in na&i(ation% the distances co&ered% the mane'&ers e+ec'ted% and other incidents of na&i(ation0 he shall also enter the dama(e s'ffered by the &essel in her h'll% en(ines% ri((in(% and tackle% no matter what its ca'se may be% as well as the impairment and dama(e s'ffered by car(o% and the effect and importance of the #ettison% sho'ld there be any0 and in cases of serio's decisions which re/'ire the ad&ice or a meetin( of the officers of the &essel% or e&en of the crew and passen(ers% he shall record the decisions adopted. <or the information indicated he shall make 'se of the binnacle book and of the steam of en(ine book kept by the en(ineer. In the second book called the @acco'ntin( book%@ he shall record all the amo'nts collected and paid for the acco'nt of the &essel% enterin( specifically article by article% the so'rce of the collection and the amo'nts spent for pro&isions% repairs% ac/'isitions of e/'ipment or (oods% f'el% food% o'tfits% wa(es% and other e+penses of whate&er nat're they may be. 7e shall f'rthermore enter therein a list of all the members of the crew% statin( their domiciles% their wa(es and salaries% and the amo'nts they may ha&e recei&ed on acco'nt% directly or by deli&ery to their families. In the third book% called @frei(ht book%@ he shall record the loadin( and dischar(e of all the (oods% statin( their marks and packa(es% names of the shippers and of the consi(nees% ports of loadin( and 'nloadin(% and the frei(hta(e they (i&e. In this same book he shall record the names and places of sailin( of the passen(ers% the n'mber of packa(es in their ba((a(e% and the price of passa(e. 4. :efore recei&in( car(o% to make with the officers of the crew and two e+perts% if re/'ired by the shippers and passen(ers% an e+amination of the &essel% in order to ascertain whether it is water1ti(ht% with the ri((in( and en(ines in (ood condition% and with the e/'ipment re/'ired for (ood na&i(ation% preser&in( 'nder his responsibility a certificate of the memorand'm of his inspection% si(ned by all those who may ha&e taken part therein. The e+perts shall be appointed% one by the captain of the &essel and another by those who re/'est its e+amination% and in case of disa(reement a third shall be appointed by the marine a'thority of the port or by the a'thority% e+ercisin( his f'nctions. ). To remain constantly on board the &essel with the crew while the car(o is bein( taken on board and to caref'lly watch the stowa(e thereof0 not to consent to the loadin( of any merchandise or matter of a dan(ero's character% s'ch as inflammable or e+plosi&e s'bstances% witho't the preca'tions which are recommended for their packin(% handlin( and isolation0 not to permit the carria(e on deck of any car(o which by reason of its arran(ement% &ol'me% or wei(ht makes the work of the sailors diffic'lt% and which mi(ht

endan(er the safety of the &essel0 and if% on acco'nt of the nat're of the merchandise% the special character of the shipment% and principally the fa&orable season in which it is 'ndertaken% merchandise may be carried on deck% he m'st hear the opinion of the officers of the &essel and ha&e the consent of the shippers and of the ship a(ent. ,. To demand a pilot at the e+pense of the &essel whene&er re/'ired by the na&i(ation% and principally when he has to enter a port% canal% or ri&er% or has to take a roadstead or anchorin( place with which neither he nor the officers and crew are ac/'ainted. -. To be on deck on reachin( land and to take command on enterin( and lea&in( ports% canals% roadsteads% and ri&ers% 'nless there is a pilot on board dischar(in( his d'ties. 7e shall not spend the ni(ht away from the &essel e+cept for serio's ca'ses or by reason of official b'siness. cdtai .. To present himself% when makin( a port in distress% to the maritime a'thority if in the 3hilippines and to the cons'l of the Rep'blic of the 3hilippines if in a forei(n co'ntry% before twentyfo'r ho'rs ha&e elapsed% and to make a statement of the name re(istry% and port of depart're of the &essel% of its car(o% and the ca'se of arri&al which declaration shall be &isaed by the a'thority or the cons'l% if after e+aminin( the same it is fo'nd to be acceptable% (i&in( the captain the proper certificate pro&in( his arri&al in distress and the reasons therefor. In the absence of the maritime a'thority or of the cons'l% the declaration m'st be made before the local a'thority. 9. To take the necessary steps before the competent a'thority in order to record in the certificate of the &essel in the re(istry of &essels the obli(ations which he may contract in accordance with Article ).3. !*. To place 'nder (ood care and c'stody all the papers and belon(in(s of any members of the crew who mi(ht die on the &essel% drawin( 'p a detailed in&entory% in the presence of passen(ers% or% in their absence% of members of the crew as witnesses. !!. To cond'ct himself accordin( to the r'les and precepts contained in the instr'ctions of the ship a(ent% bein( liable for all that which he may do in &iolation thereof. !$. To inform the ship a(ent from the port at which the &essel arri&es% of the reason of his arri&al% takin( ad&anta(e of the semaphore% tele(raph% mail% etc.% as the case may be0 to notify him of the car(o he may ha&e recei&ed% statin( the names and domiciles of the shippers% frei(hta(e earned% and amo'nts borrowed on bottomry loan0 to ad&ise him of his depart're% and of any operation and date which may be of interest to him. !3. To obser&e the r'les with respect to sit'ation% li(hts and mane'&ers in order to a&oid collisions. !4. To remain on board% in case the &essel is in dan(er% 'ntil all hope to sa&e it is lost% and before abandonin( it% to hear the officers of the crew% abidin( by the decision of the ma#ority0 and if the boats are to be taken to% he shall take with him% before anythin( else% the books and papers% and then the articles of most &al'e% bein( obli(ed to pro&e% in case of the loss of the books and papers% that he did all he co'ld to sa&e them. !). In case of wreck% to make the proper protest in d'e form at the first port of arri&al% before the competent a'thority or the 3hilippine cons'l% within twenty1fo'r ho'rs% specifyin( therein all the incidents of the wreck% in accordance with s'bdi&ision . of this article. !,. To comply with the obli(ations imposed by the laws and re('lations on na&i(ation% c'stoms% health% and others.

ARTICLE ,!3. A captain who na&i(ates for frei(ht in common or on shares may not make any separate transaction for his own acco'nt0 and sho'ld he do so% the profit which may accr'e shall belon( to the other persons interested% and the losses shall be borne by him e+cl'si&ely. ARTICLE ,!4. A captain who% ha&in( made an a(reement to make a &oya(e% fails to perform his 'ndertakin(% witho't pre&ented by fort'ito's accident or force ma#e're% shall indemnify for all the losses which he may ca'se witho't pre#'dice to the criminal penalties which may be proper. ARTICLE ,!). "itho't the consent of the a(ent% the captain cannot ha&e himself s'bstit'ted by another person0 and sho'ld he do so% besides bein( liable for all the acts of the s'bstit'te and bo'nd to the indemnities mentioned in the fore(oin( articles% the captain as well as the s'bstit'te may be dischar(ed by the ship a(ent. ARTICLE ,!,. If the pro&isions and f'el of the &essel sho'ld be cons'med before arri&in( at the port of destination% the captain shall order% with the consent of the officers of the same% the arri&al at the nearest port to (et a s'pply of either0 b't if there are persons on board who ha&e pro&isions of their own% he may force them to deli&er said pro&ision for the common cons'mption of all those who may be on board% payin( the price thereof at the same time% or at the latest% at the first port reached. ARTICLE ,!-. The captain may not contract loans on respondentia sec'red by the car(o0 and sho'ld he do so% the contracts shall be &oid. 5either may he borrow money on bottomry for his own transactions% e+cept on the portion of the &essel he owns% pro&ided no money has been pre&io'sly borrowed on the whole &essel% and there does not e+ist any other kind of lien or obli(ation char(eable a(ainst the &essel. If he may do so% he m'st state what interest he has in the &essel. In case of &iolation of this article% the principal% interest% and costs shall be for the personal acco'nt of the captain% and the ship a(ent may f'rthermore dischar(e him. ARTICLE ,!.. The captain shall be ci&illy liable to the ship a(ent% and the latter to the third persons who may ha&e made contracts with the former0 !. <or all the dama(es s'ffered by the &essel and its car(o by reason of want of skill or ne(li(ence on his part. If a misdemeanor or crime has been committed% he shall be liable in accordance with the 3enal Code. $. <or all the thefts committed by the crew% reser&in( his ri(ht of action a(ainst the ('ilty parties. 3. <or the losses% fines% and confiscations imposed an acco'nt of &iolation of c'stoms% police% health% and na&i(ation laws and re('lations. 4. <or the losses and dama(es ca'sed by m'tinies on board the &essel or by reason of fa'lts committed by the crew in the ser&ice and defense of the same% if he does not pro&e that he made timely 'se of all his a'thority to pre&ent or a&oid them. ). <or those ca'sed by the mis'se of the powers and the non1f'lfillment of the obli(ations pertainin( to him in accordance with Articles ,!* and ,!$.

,. <or those arisin( by reason of his (oin( o't of his co'rse or takin( a co'rse which he sho'ld not ha&e taken witho't s'fficient ca'se% in the opinion of the officers of the &essel% at a meetin( with the shippers or s'percar(oes who may be on board. 5o e+ceptions whatsoe&er shall e+empt him from this obli(ation. -. <or those arisin( by reason of his &ol'ntarily enterin( a port other than that of his destination% o'tside of the cases or witho't the formalities referred to in Article ,!$. .. <or those arisin( by reason of non1obser&ance of the pro&isions contained in the re('lations on sit'ation of li(hts and mane'&ers for the p'rpose of pre&entin( collisions. ARTICLE ,!9. The captain shall be liable for the car(o from the time it is deli&ered to him at the dock or afloat alon(side the at the port of loadin(% 'ntil he deli&ers it on the shore or on the dischar(in( wharf at the port of 'nloadin(% 'nless the contrary has been e+pressly a(reed 'pon. ARTICLE ,$*. The captain shall not be liable for the dama(es ca'sed to the &essel or to the car(o by force ma#e're0 b't he shall always be so for those arisin( thro'(h his own fa'lt% no a(reement to the contrary bein( &alid. 5either shall he be personally liable for the obli(ations he may ha&e contracted for the repair% e/'ipment% and pro&isionin( of the &essel% which shall de&ol&e 'pon the ship a(ent% 'nless the former has e+pressly bo'nd himself personally or has si(ned a bill of e+chan(e or promissory note in his name. ARTICLE ,$!. A captain who borrows money on the h'll% en(ine% ri((in( or tackle of the &essel% or pled(es or sells merchandise or pro&isions o'tside of the cases and witho't the formalities prescribed in this Code% shall be liable for the principal% interests% and costs% and shall indemnify for the dama(es he may ca'se. 7e who commits fra'd in his acco'nts shall pay the amo'nt defra'ded and shall be s'b#ect to the pro&isions of the 3enal Code. ARTICLE ,$$. If while on a &oya(e the captain sho'ld learn of the appearance of pri&ateers or men of war a(ainst his fla(% he shall be obli(ed to make the nearest ne'tral port% inform his a(ent or shippers% and await an occasion to sail 'nder con&oy% or 'ntil the dan(er is o&er or he has recei&ed e+press orders from the ship a(ent or the shippers. ARTICLE ,$3. If he sho'ld be attacked by a pri&ateer% and% after ha&in( tried to a&oid the enco'nter and ha&in( resisted the deli&ery of the effects of the &essel or its car(o% they sho'ld be forcibly taken away from him% or he sho'ld be obli(ed to deli&er them% he shall make an entry thereof in his frei(ht book and shall pro&e the fact before the competent a'thority at the first port he to'ches. After the force ma#e're has been pro&ed% he shall be e+empted from liability. ARTICLE ,$4. A captain whose &essel has (one thro'(h a h'rricane or who belie&es that the car(o has s'ffered dama(es or a&era(es% shall make a protest thereon before the competent a'thority at the first port he to'ches% within twenty1fo'r ho'rs followin( his arri&al and shall ratify it within the same period when he arri&es at his destination%

immediately proceedin( with the proof of the facts% and he may not open the hatches 'ntil after this has been done. The captain shall proceed in the same manner% if% the &essel ha&in( been wrecked0 he is sa&ed alone or with part of his crew% in which case he shall appear before the nearest a'thority% and make a sworn statement of facts. The a'thority or the cons'l shall &erify the said facts recei&in( sworn statements of the members of the crew and passen(ers who may ha&e been sa&ed0 and takin( s'ch other steps as may assist in arri&in( at the facts he shall make a statement of the res'lt of the proceedin(s in the lo( book and in that of the sailin( mate% and shall deli&er to the captain the ori(inal record of the proceedin(s% stamped and folioed% with a memorand'm of the folios% which he m'st r'bricate% in order that it may be presented to the #'d(e or co'rt of the port of destination. The statement of the captain shall be accepted if it is in accordance with those of the crew and passen(ers0 if they disa(ree% the latter shall be accepted% always sayin( proof to the contrary. ARTICLE ,$). The captain% 'nder his personal responsibility as soon as he arri&es at the port of destination% sho'ld (et the necessary permission from the health and c'stoms officers% and perform the other formalities re/'ired by the re('lations of the administration% deli&erin( the car(o witho't any defalcation% to the consi(nee% and in a proper case% the &essel% ri((in(% and frei(hta(e to the ship a(ent. If by reason of the absence of the consi(nee or on acco'nt of the nonappearance of a le(al holder of the bills of ladin(% the captain sho'ld not know to whom he is to le(ally make the deli&ery of the car(o% he shall place it at the disposal of the proper #'d(e or co'rt or a'thority% in order that he may determine what is proper with re(ard to its deposit% preser&ation and c'stody. SECTION THREE OFFICERS AND CREW OF VESSELS ARTICLE ,$,. In order to be a sailin( mate it shall be necessary !. To ha&e the /'alifications re/'ired by the marine or na&i(ation laws or re('lations. $. 5ot to be dis/'alified in accordance therewith for the dischar(e of his d'ties. ARTICLE ,$-. The sailin( mate% as the second chief of the &essel% and 'nless the a(ent orders otherwise% shall take the place of the captain in cases of absence% sickness% or death% and shall then ass'me all his powers% d'ties% and responsibilities. ARTICLE ,$.. The sailin( mate m'st pro&ide himself with charts of the seas in which he will na&i(ate with the astronomical tables and instr'ments for obser&ation which are in 'se and which are necessary for the dischar(e of his d'ties% bein( liable for the accidents which may arise by reason of his omission in this re(ard. ARTICLE ,$9. The sailin( mate shall partic'larly and personally keep a book% folioed and stamped on all its pa(es% denominated @:innacle :ook@ with a memorand'm at the be(innin( statin( the n'mber of folios it contains% si(ned by the competent a'thority%

and shall enter therein daily the distance% the co'rse tra&elled% the &ariations of the needle% the leeway% the direction and force of the wind% the condition of the atmosphere and of the sea% the ri((in( set% the latit'de and lon(it'de obser&ed% the n'mber of f'rnace heated% the steam press're% the n'mber of re&ol'tions% and 'nder the title @incidents%@ the mane'&ers made% the meetin( with other &essels% and all the details and incidents which may occ'r d'rin( the &oya(e. ARTICLE ,3*. In order to chan(e the co'rse and to take the one most con&enient for a (ood &oya(e of the &essel% the sailin( mate shall come to an a(reement with the captain. If the latter sho'ld ob#ect% the sailin( mate shall state to him the proper obser&ations in the presence of the other officers of the sea. If the captain sho'ld still insist on his ne(ati&e decision% the sailin( mate shall make the proper protest% si(ned by him and by one other officer% in the lo( book% and shall obey the captain% who alone shall be responsible for the conse/'ences of his decision. ARTICLE ,3!. The sailin( mate shall be responsible for all the dama(es ca'sed to the &essel and the car(o by reason of his ne(li(ence or want of skill witho't pre#'dice to the criminal liability which may arise% if a felony or misdemeanor has been committed. ARTICLE ,3$. The followin( shall be the obli(ations of the second mate !. To watch o&er the preser&ation of the h'll and ri((in( of the &essel% and to take char(e of the preser&ation of the tackle and e/'ipment which make 'p her o'tfit% s'((estin( to the captain the repairs necessary and the replacement of the (oods and implements which are rendered 'seless and are lost. $. To take care that the car(o is well arran(ed% keepin( the &essel always ready for mane'&er. 3. To preser&e order% discipline% and (ood ser&ice amon( the crew% re/'estin( the necessary orders and Instr'ctions of the captain% and (i&in( him prompt information of any occ'rrence in which the inter&ention of his a'thority may be necessary. 4. To assi(n to each sailor the work he is to do on board% in accordance with the instr'ction recei&ed and to see that it is promptly and acc'rately carried o't. ). To take char(e 'nder in&entory of the ri((in( and all the e/'ipment of the &essel% if it sho'ld be laid 'p% 'nless the ship a(ent has ordered otherwise. "ith re(ard to en(ineers the followin( r'les shall (o&ern !. In order to be taken on board as a marine en(ineer formin( part of the complement of a merchant &essel% it shall be necessary to ha&e the /'alifications which the laws and re('lations re/'ire% and not be dis/'alified in accordance therewith for the dischar(e of his d'ties. En(ineers shall be considered officers of the &essel b't they shall ha&e no a'thority or inter&ention e+cept in matters referrin( to the motor apparat's. $. "hen there are two or more en(ineers on board a &essel% one of them shall be the chief% and the other en(ineers and all the personnel of the en(ines shall be 'nder his orders0 he shall also ha&e char(e of the motor apparat's% the spare parts% the instr'ments and tools pertainin( thereto% the f'el% the l'bricatin( material and% finally% whate&er is entr'sted to an en(ineer on board a &essel.

3. 7e shall keep the en(ines and boilers in (ood condition and state of cleanliness% and shall order what may be proper in order that they may always be ready to work with re('larity% bein( liable for the accidents or dama(es which his ne(li(ence or want of skill may ca'se to the motor apparat's% to the &essel and to the car(o% witho't pre#'dice to the criminal liability which may be proper if there has been a felony or misdemeanor. 4. 7e shall not make any chan(e in the motor apparat's% or proceed to repair the a&era(es he may ha&e noticed in the same% or chan(e the normal speed of its mo&ement witho't the prior a'thori8ation of the captain.% to whom% if he sho'ld ob#ect to their bein( made% he shall state the proper obser&ations in the presence of the other en(ineers or officers0 and if% notwithstandin( this% the captain sho'ld insist on his ob#ection% the chief en(ineer shall make the proper protests% enterin( the same in the en(ine book% and shall obey the captain% who% alone shall be responsible for the conse/'ences of his decision. ). 7e shall inform the captain of any a&era(e which may occ'r in the motor apparat's% and shall ad&ise him whene&er it may be necessary to stop the en(ines for some time% or when any other incident occ'rs in his department of which the captain sho'ld be immediately informed% besides fre/'ently ad&isin( him of the cons'mption of f'el and l'bricatin( material. ,. 7e shall keep a book or re(istry called the @en(ine book%@ in which shall be entered all the date referrin( to the work of the en(ines% s'ch as% for e+ample% the n'mber of f'rnaces heated% the &ac''m in the condenser% the temperat're% the de(ree of sat'ration of the water in the boilers the cons'mption of f'el and l'bricatin( material% and 'nder the headin( of @noteworthy occ'rrences%@ the a&era(es and malad#'stments which occ'r in the en(ines and boilers% the ca'ses thereof and the means employed to repair the same likewise% the force and direction of the wind% the ri((in( set and the speed of the &essel shall be stated% takin( the information from the :innacle :ook. ARTICLE ,33. The second mate shall take command of the &essel in case of the inability or dis/'alification of the captain and the sailin( mate% ass'min( in s'ch case their powers and responsibility. ARTICLE ,34. The captain may make 'p the crew of his &essel with s'ch n'mber of men as he may consider proper% and in the absence of <ilipino sailors% he may take on forei(ners residin( in the co'ntry% the n'mber thereof not to e+ceed one1fifth of the crew. If in forei(n ports the captain sho'ld not find a s'fficient n'mber of <ilipino sailors% he may complete the crew with forei(ners% with the consent of the cons'l or marine a'thorities. The a(reement which the captain may make with the members of the crew and others who (o to make 'p the complement of the &essel% to which reference is made in Article ,!$% m'st be red'ced to writin( in the acco'nt book% witho't the inter&ention of a notary p'blic or clerk of co'rt ?@escribano@A% si(ned by the parties thereto and &isaed by the marine a'thority if they be e+ec'ted in 3hilippine territory or by the cons'ls or cons'lar a(ents of the Rep'blic of the 3hilippines if e+ec'ted abroad% statin( therein all the obli(ations which each one contracts and all the ri(hts he ac/'ires said a'thorities takin( care that these obli(ations and ri(hts are recorded in a clear and definite manner which (i&e no room for do'bts or claims.

The captain shall take care to read to them the articles of this Code which concern them% statin( in said doc'ment that they were read. If the book contains the re/'isites prescribed in Article ,!$% and there sho'ld not appear any si(ns of alterations in its entries% it shall be admitted as e&idence in /'estions which may arise between the captain and the crew with respect to the a(reements contained therein and the amo'nts paid on acco'nt of the same. E&ery member of the crew may demand of the captain a copy% si(ned by the latter% of the a(reement and of the li/'idation of his wa(es% as they appear in the book. ARTICLE ,3). A seaman who has been contracted to ser&e on a &essel may not rescind his contract or fail to comply therewith e+cept by reason of a le(itimate impediment which may ha&e happened to him. 5either may he transfer from the ser&ice of one &essel to another witho't obtainin( the written permission of the captain of the &essel on which he may be. If% witho't obtainin( said permission% the seaman who has si(ned for one &essel sho'ld si(n for another one% the second contract shall be &oid% and the captain may choose between forcin( him to f'lfill the ser&ice to which he first bo'nd himself% or at his e+pense to look for a person to s'bstit'te him. <'rthermore% he shall lose the wa(es earned on his first contract% to the benefit of the &essel for which he had si(ned. A captain who% knowin( that a seaman is in the ser&ice of another &essel% sho'ld ha&e made a new a(reement with him witho't ha&in( re/'ired of him the permission referred to in the precedin( para(raphs% shall be s'bsidiarily responsible to the captain of the &essel to which the seaman first belon(ed% for that part of the indemnity% referred to in the third para(raph of this article% which the seaman may not be able to pay. ARTICLE ,3,. If there is no fi+ed period for which a seaman has been contracted he may not be dischar(ed 'ntil the end of the ret'rn &oya(e to the port where he enlisted. ARTICLE ,3-. 5either may the captain dischar(e a seaman d'rin( the time of his contract e+cept for #'st ca'se% the followin( bein( considered as s'ch !. The perpetration of a crime which dist'rbs order on the &essel. $. Repeated ins'bordination% want of discipline% or non1f'lfillment of the ser&ice. 3. Repeated incapacity and ne(li(ence in the f'lfillment of the ser&ice he sho'ld render. 4. 7abit'al dr'nkenness. ). Any occ'rrence which incapacitates the seaman to perform the work entr'sted to him% with the e+ception of that pro&ided in Article ,44. ,. Besertion. The captain may% howe&er% before (ettin( o't on a &oya(e and witho't (i&in( any reason% ref'se to permit a seaman whom he may ha&e en(a(ed to (o on board% and lea&e him on land% in which case he will be obli(ed to pay him his wa(es as if he had rendered ser&ices. This indemnity shall be paid from the f'nds of the &essel if the captain sho'ld ha&e acted for reasons of pr'dence and in the interest of the safety and (ood ser&ices of the farmer. ;ho'ld this not be the case% it shall be paid by the captain personally.

After the &oya(e has be('n% d'rin( the same% and 'ntil the concl'sion thereof% the captain may not abandon any member of his crew on land or on sea% 'nless% by reason of some crime% his imprisonment and deli&ery to the competent a'thority in the first port to'ched sho'ld be proper% a matter obli(atory for the captain. ARTICLE ,3.. If% after the crew has been en(a(ed% the &oya(e is re&oked by the will of the ship a(ent or of the charterers before or after the &essel has p't to sea% or if the &essel is for the same reason (i&en a destination different from that fi+ed in the a(reement with the crew% the latter shall be indemnified on acco'nt of the rescission of the contract% accordin( to the cases follows !. If the re&ocation of the &oya(e sho'ld be decided 'pon before the depart're of the &essel from the port% each sailor en(a(ed shall be (i&en one month>s salary% besides what may be d'e him% in accordance with his contract% for the ser&ices rendered to the &essel 'p to the date of the re&ocation. $. If the a(reement sho'ld ha&e been for a fi+ed amo'nt for the whole &oya(e% that which may be d'e for said month and days shall be determined in proportion to the appro+imate n'mber of days the &oya(e sho'ld ha&e lasted% in the #'d(ment of e+perts% in the manner established in the law of Ci&il 3roced're0 and if the proposed &oya(e sho'ld be of s'ch short d'ration that it is calc'lated at appro+imately one month% the indemnity shall be fi+ed for fifteen days% disco'ntin( in all cases the s'ms ad&anced. 3. If the re&ocation sho'ld take place after the &essel has p't to sea% the seamen en(a(ed for a fi+ed amo'nt for the &oya(e shall recei&e in f'll the salary which may ha&e been offered them as if the &oya(e had terminated0 and those en(a(ed by the month shall recei&e the amo'nt correspondin( to the time they mi(ht ha&e been on board and to the time they may re/'ire to arri&e at the port of destination% the captain bein( obli(ed% f'rthermore% to pay the seamen in both cases% the passa(e to the said port or to the port of sailin( of the &essel% as may be con&enient for them. 4. If the ship a(ent or the charterers of the &essel sho'ld (i&e it a destination different from that fi+ed in the a(reement% and the members of the crew sho'ld not a(ree thereto% they shall be (i&en by way of indemnity half the amo'nt fi+ed in case 5o. !% besides what may be owed them for the part of the monthly wa(es correspondin( to the days which ha&e elapsed from the date of their a(reements. If they accept the chan(e% and the &oya(e% on acco'nt of the (reater distance or of other reasons% sho'ld (i&e rise to an increase of wa(es% the latter shall be ad#'sted pri&ately or thro'(h amicable arbitrators in case of disa(reement. E&en tho'(h the &oya(e sho'ld be shortened to a nearer point% this shall not (i&e rise to a red'ction in the wa(es a(reed 'pon. If the re&ocation or chan(e of the &oya(e sho'ld come from the shippers or charterers% the a(ent shall ha&e a ri(ht to demand of them the indemnity which may be #'stly d'e. ARTICLE ,39. If the re&ocation of the &oya(e sho'ld arise from a #'st ca'se independent of the will of the ship a(ent and charterers% and the &essel sho'ld not ha&e left the port% the members of the crew shall ha&e no other ri(ht than to collect the wa(es earned 'p to the day on which the re&ocation took place.

ARTICLE ,4*. The followin( shall be #'st ca'ses for the re&ocation of the &oya(e. !. A declaration of war or interdiction of commerce with the power to whose territory the &essel was bo'nd. $. The blockade of the port of its destination% or the breakin( o't of an epidemic after the a(reement. 3. The prohibition to recei&e in said port the (oods which make 'p the car(o of the &essel. 4. The detention or embar(o of the same by order of the (o&ernment% or for any other reason independent of the will of the ship a(ent. ). The inability of the &essel to na&i(ate. ARTICLE ,4!. If% after a &oya(e has been be('n% any of the first three ca'ses mentioned in the fore(oin( article sho'ld occ'r% the sailors shall be paid at the port which the captain may deem ad&isable to make for the benefit of the &essel and car(o% accordin( to the time they may ha&e ser&ed thereon0 b't if the &essel is to contin'e its &oya(e% the captain and the crew may m't'ally demand the enforcement of the contract. In case of the occ'rrence of the fo'rth ca'se% the crew shall contin'e to be paid half wa(es% if the a(reement is by month0 b't if the detention sho'ld e+ceed three months% the contract shall be rescinded and the crew shall be paid what they sho'ld ha&e earned accordin( to the contract if the &oya(e had been concl'ded. And if the a(reement sho'ld be for a fi+ed s'm for the &oya(e% the contract m'st be complied within the terms a(reed 'pon. In the fifth case% the crew shall ha&e no other ri(ht than to collect the wa(es earned0 b't if the disability of the &essel sho'ld ha&e been ca'sed by the ne(li(ence or lack of skill of the captain% en(ineer% or sailin( mate% they shall indemnify the crew for the dama(es s'ffered% always witho't pre#'dice to the criminal liability which may be proper. ARTICLE ,4$. If the crew ha&e been en(a(ed on shares% they shall not be entitled% by reason of the re&ocation% delay% or (reater e+tension of the &oya(e% to anythin( b't the proportionate part of the indemnity which way be paid into the common f'nds of the &essel by the persons liable for said occ'rrences. ARTICLE ,43. If the &essel and her car(o sho'ld be totally lost% by reason of capt're or wreck% all ri(hts shall be e+tin('ished% both as re(ards the crew to demand any wa(es whatsoe&er% and as re(ards the ship a(ent to reco&er the ad&ances made. If a portion of the &essel or of the car(o% or of both% sho'ld be sa&ed% the crew en(a(ed on wa(es% incl'din( the captain% shall retain their ri(hts on the sal&a(e% so far as they (o% on the remainder of the &essel as well as on the amo'nt of the frei(hta(e of the car(o sa&ed0 b't sailors who are en(a(ed on shares shall not ha&e any ri(ht whatsoe&er on the sal&a(e of the h'll% b't only on the portion of the frei(hta(e sa&ed. If they sho'ld ha&e worked to reco&er the remainder of the shipwrecked &essel they shall be (i&en from the amo'nt of the sal&a(e an award in proportion of the efforts made and to the risks% enco'ntered in order to accomplish the sal&a(e.

ARTICLE ,44. A seaman who falls sick shall not lose his ri(ht to wa(es d'rin( the &oya(e% 'nless the sickness is the res'lt of his own fa'lt. At any rate% the costs of the attendance and c're shall be defrayed from the common f'nds% in the form of a loan. If the sickness sho'ld come from an in#'ry recei&ed in the ser&ice or defense of the &essel% the seaman shall be attended and c'red at the e+pense of the common f'nds ded'ctin(% before anythin( else% from the proceeds of the frei(hta(e the cost of the attendance and c're. ARTICLE ,4). If a seaman sho'ld die d'rin( the &oya(e% his heirs will be (i&en the wa(es earned and not recei&ed accordin( to his contract and the ca'se of his death% namely C If he died a nat'ral death and was en(a(ed on wa(es% that which may ha&e been earned 'p to the date of his death shall be paid. If the contract was for a fi+ed s'm for the whole &oya(e% half the amo'nt earned shall be paid if the seamen died on the &oya(e o't% and the whole amo'nt if he died on the ret'rn &oya(e. And if the contract was on shares and death occ'rred after the &oya(e was be('n% the heirs shall be paid the entire portion d'e the seaman0 b't if the latter died before the depart're of the &essel from the port% the heirs shall not be entitled to claim anythin(. If death occ'rred in the defense of the &essel% the seaman shall be considered as li&in(% and his heirs shall be paid% at the end of the &oya(e% the f'll amo'nt of wa(es or the inte(ral part of the profits which may be d'e him as to others of his class. In the same manner% the seaman capt'red while defendin( the &essel shall be considered present so as to en#oy the same benefits as the rest0 b't sho'ld he ha&e been capt'red on acco'nt of carelessness or other accident not related to the ser&ice% he shall only recei&e the wa(es d'e 'p to the day of his capt're. ARTICLE ,4,. The &essel with her en(ines% ri((in(% e/'ipment% and frei(hta(e shall he liable for the wa(es earned by the crew en(a(ed per month or for the trip% the li/'idation and payment to take place between one &oya(e and the other. After a new &oya(e has been 'ndertaken% credits of s'ch kind pertainin( to the precedin( &oya(e shall lose their ri(ht of preference. ARTICLE ,4-. The officers and the crew of the &essel shall be free from all obli(ations if they deem it proper% in the followin( cases !. If% before be(innin( the &oya(e% the captain attempts to chan(e it% or a na&al war with the power to which the &essel was destined occ'rs. $. If a disease sho'ld break o't and be officially declared an epidemic in the port of destination. 3. If the &essel sho'ld chan(e owner or captain. ARTICLE ,4.. :y the complement of a &essel shall be 'nderstood all the persons on board% from the captain to the cabin boy% necessary for the mana(ement% mane'&ers% and ser&ice% and therefore% the complement shall incl'de the crew% the sailin( mates% en(ineers% stokers and other employees on board not ha&in( specific desi(nations0 b't it shall not incl'de the passen(ers or the persons whom the &essel is transportin(.

SECTION FOUR SUPERCARGOES ARTICLE ,49. ;'percar(oes shall dischar(e on board the &essel the administrati&e d'ties which the ship a(ent or the shippers may ha&e assi(ned to them0 they shall keep an acco'nt and record of their transactions in a book which shall ha&e the same conditions and re/'isites as re/'ired for the acco'ntin( book of the captain% and they shall respect the latter in his capacity as chief of the &essel. The powers and responsibilities of the captain shall cease% when there is a s'percar(o% with re(ard to that part of the administration le(itimately conferred 'pon the latter% b't shall contin'e in force for all acts which are inseparable from his a'thority and office. ARTICLE ,)*. All the pro&isions contained in the second section of Title III% :ook II% with re(ard to capacity% manner of makin( contracts% and liabilities of factors% shall be applicable to s'percar(oes. ARTICLE ,)!. ;'percar(oes may not% witho't special a'thori8ation or a(reement% make any transaction for their own acco'nt d'rin( the &oya(e% with the e+ception of the &ent'res which% in accordance with the c'stom of the port of destination% they are permitted to do. 5either shall they be permitted to in&est in the ret'rn trip more than the profits from the &ent'res% 'nless there is an e+press a'thori8ation from the principals.