Atty. Vivencio F.
Abaño
CONTRACTS IN MARITIME COMMERCE (A)
BILL OF LADING ELECTRONIC B/L
A. Definition: A. Advantages over paper
B/L
A written acknowledgement of the receipt of the 1. Avoids delay
goods, their quantity and condition, and an 2. Prevents fraud,
agreement to transport and deliver them at a alteration, forgery,
specific place to a person named or on his order. It counterfeiting
is signed by the captain and shipper, and furnished
to the consignee (Art. 706). B. Necessitated by:
1. Containerization
B. Functions: 2. Computerization,
1. A receipt for the goods electronic data
2. A contract of carriage interchange (EDI)
3. A document of title
C. Electronic Commerce Act
C. Kinds: provides for the legal
1. Negotiable – goods to be delivered to the recognition and admissibility as
bearer or to the order of the person named; evidence of electronic data
Non-negotiable – goods to be delivered to messages and electronic
the person named documents, so long as they can
2. Clean – goods received in good condition be authenticated by electronic
and/or correct quantity signature. Holder of the B/L is
Foul – goods received in bad condition the holder of the “private keys”
and/or short quantity and can claim delivery of the
3. Through – issued by first carrier and goods, transfer his right to
honored by the successive carriers another, and substitute or
4. On board – goods received on board the terminate the nominated
vessel which will transport the goods; consignee.
Received shipment – goods received for
shipment with or without specifying the D. E-documents may now be
vessel which will transport the goods used in furnishing the marks,
number and weight of goods; in
D. Jurisprudence: stating or declaring the nature
1. A bill of lading, when properly executed and or value of goods; issuing a
delivered to a shipper, is evidence that the receipt for goods; confirming
carrier received the goods described the loading of goods; claiming
therein for shipment. delivery of goods; authorizing
2. Acceptance of bill of lading without dissent release of goods; giving notice
raises the presumption that all terms of loss of, or damage to goods;
therein were brought to the knowledge of undertaking to deliver the
the shipper and agreed to by him, and in goods to a named person or a
the absence of fraud or mistake, he is person authorized to claim
estopped from denying that he assented to delivery; granting, acquiring,
such terms. renouncing, surrendering,
3. A bill of lading is an actionable document, transferring or negotiating
which must be properly pleaded, and the rights in goods (Sec. 25,
genuineness and due execution thereof are ECA/R.A. 8792)
deemed admitted unless specifically denied
by the adverse party.
CHARTER PARTY
A. Meaning:
A contract by which the shipowner or ship
agent leases for a price certain the whole or a
portion of the vessel for the transport of goods
or persons from one place to another.
B. Kinds:
1. Contract of affreightment – the
shipowner retains the possession,
command and navigation of the
vessel or a space therein for a fixed
price, at a fixed time or for a single or
consecutive voyage. Liable for
damages: shipowner.
2. Bareboat or demise charter – the
charterer mans the vessel with his
own people and becomes, in effect,
the owner of the vessel for the
voyage or service stipulated. Liable
for damages: charterer.
C. Definitions:
1. Lay days – stipulated period for the
loading or unloading of a vessel
2. Extra lay days – days of delay beyond
the lay days
3. Customary quick dispatch – and obligation to repay is
reasonable period for the loading or
unloading according to the custom of
usage of the port
4. Demurrage – fixed remuneration to
the owner of the vessel for its
detention beyond the lay days or
extra lay days.
5. Dead weight – cargo which the
charterer fails to load in the vessel or
payment made by the charterer to
the shipowner for the portion of the
vessel chartered but not occupied.
D. Terms:
1. CQD
2. WWDSHINC
3. WWDSHEX-EIU
4. WWDHEX-UU
BOTTOMRY/RESPONDENTIA
A. Loan on bottomry:
1. Shipowner borrows
money for use,
equipment or repair of
vessel;
2. For a definite term and
with extraordinary
interest called premium;
3. Secured by pledge of
vessel or portion thereof;
4. Loan repayment depends
or conditioned on safe
arrival of vessel;
5. Obligation to repay is
extinguished if vessel is
lost due to specified
perils in the course of
voyage or within limited
(Art. 719).
B. Loan on respondentia:
1. Same as above, except
that what is pledged is
the goods;
2. Loan repayment depends
on safe arrival of goods
extinguished if pledged
goods are lost.
C. No loan on bottomry on wages
or profit expected (Art. 731).
D. Loans for the last voyage shall
have preference over prior ones
(Art. 730).
E. Cause of loss must be marine
peril (Art. 731).
 BILL OF RIGHTS OF AIR PASSENGERS
JOINT DOTC-DTI RIGHT TO
ADMINISTRATIVE ORDER INFORMATION
A. Scope of A.O. No. 01- 1. Right to full, fair and
2012 clear disclosure of the
The rules shall apply to all service and all terms and
aspects of contracts of carriage conditions of the contract of
for flights or portion of a flightcarriage [Sec. 4].
into, from and within territory of The disclosure, before the
the Philippines operated by purchase of any ticket, shall
Philippine air carriers, and include documents required
flights or portions of a flight from
at check-in, check-in
the territory of the Philippines deadlines, baggage
operated by foreign carriers. allowance, refund and
The compensation rules do rebooking policies,
not apply to foreign carriers procedures and
flying into the territory of the responsibility for delayed
Philippines if the laws of the and/or cancelled flights. The
country of origin provide similar terms may include liability
or higher compensation. limitations, claim-filing
deadlines and other crucial
B. Rights of air passengers conditions. The disclosure
shall be printed on the ticket
1. Right to be provided with and/or boarding pass, and in
accurate information before carrier’s website
purchase of the service.
2. Right to receive the full value 2. Right to clear and non-
of the service purchased. misleading advertisements
3. Right to compensation of, and important reminders
without delay. regarding the fare [Sec. 5].
C. Penalty for violations by Major restrictions, such as
carrier those on rebookability in
1. Violation of the order is case of non-use of ticket,
penalized in accordance with shall be disclosed fully and
the Civil Aeronautics Act of the clearly.
Philippines.
2. Violation of Sec. 4 is ground 3. Right against
for denial of application for, or misleading and fraudulent
suspension/recall of approval of sales promotion practices
promo rates/advertised fares. [Sec. 6].
3. Violation of Secs. 5 and 6 are
governed by Consumer Act of All sales promotion
the Philippines. campaigns and activities
shall be carried out with
honesty, transparency and
fairness. Copies of
promotional materials shall
be provided to DTI for post
audit.
RIGHT TO FULL VALUE RIGHT TO COMPENSATION
1. Right to transportation and baggage 1. Right to compensation and amenitites in case of flight
conveyance, and ancillary services, in cancellation [Sec.11].
accordance with the terms and These include: prior notification of cancellation, sufficient
conditions of the contract [Sec. 7]. refreshment or meals, hotel accommodation, transportation to
Any violation of the terms and conditions hotel, reimbursement of the value of the fare if passenger decides
due to negligence of the carrier shall not to fly, endorsement to another carrier without paying fare
entitle the passenger to compensation or difference, rebooking of the ticket without additional charge.
If cancellation is 24 hours before ETD, only notification,
other acceptable arrangements.
rebooking or reimbursement are required. If cancellation is due to
force majeure, safety and/or security reasons as certified by CAAP,
2. Right to be processed for check-in at least refund of full value of fare.
within the check-in deadline when the
passenger has a confirmed ticket, with 2. Right to compensation and amenitites in case of flight delay
complete documents, and has complied [Sec.12].
with the check-in procedures [Sec. 8]. In case of terminal delay (passenger is in departure area) of 3
A passenger within designated check-in hours after ETD, he shall be provided with meals or refreshment,
area 1 hour before the ETD shall not be free phone calls, text or e-mails, and rebooking or refund of his
considered late or a no-show, and shall ticket or endorsement to another airline.
not (sic) checked in. Any dispute shall be In case of terminal delay of 6 hours after ETD for causes
resolved on-site by the carrier with attributable to the carrier, flight is deemed cancelled and
proofs, such as CCTV recordings, and passenger entitled to rights and amenities for flight cancellation.
other available means. In case of tarmac delay (passenger has boarded plane) of 2
hours after ETD, sufficient food and beverage shall be provided.
3. Right to sufficient processing time for
3. In case of overbooking and if accepted by passenger,
check-in: 2 hours before ETD in
compensation under Sec. 10 shall constitute liquidated damages
international airports and 1 hour in other for carrier’s failure to provide confirmed seat [Sec. 13].
airports [Sec. 9].
4. Right to compensation for delayed, lost and damaged baggage
4. Right to board aircraft for the flight, [Sec. 14].
except when denial has legal or valid Baggage shall be on same flight taken by passenger, subject to
cause such as issues of immigration, considerations of safety, security, or other valid causes. Passenger
safety and security, health concerns, or shall be informed soonest of off-loading and reasons therefor.
government requisition of space [Sec. Baggage shall be carried in next flight available and delivered to
10]. him.
In case of overbooking or government Compensation of P2,000 for delay of 24 hours or portion thereof.
requisition, the carrier shall look for For lost or damaged baggage attributable to carrier, compensation
volunteers willing to give up their shares shall be: (a) for international flight, relevant Convention shall
in exchange for proper apply; (b) for domestic flight, ½ of the amount in relevant
incentives/compensation/amenities Convention or its peso equivalent. Baggage is deemed
which, if need be, shall be increased. The permanently and totally lost if not delivered within 7 days.
carrier shall do the same when the
5. Right to compensation in case of death or bodily injury [Sec. 15].
government requisition result in
For international flight, relevant Convention and Inter-Carrier
passengers having to forego their Agreement to apply. Under 1966 Montreal Agreement, limit of
confirmed space. Refund from the liability is US$75,000 inclusive of attorney’s fees and costs. For
government for the full value of the domestic flight, it is amount stipulated in relevant Convention in
requisitioned seats may be claimed by peso equivalent.
the air carrier.
6. Right to immediate payment of compensation [Sec. 16]. Checks,
cash, or documents convertible to cash shall be tendered at
carrier’s counter at airport on the date when occasion entitling
passenger occurred.
7. Right to refund of other fees, if any, such as checked baggage
fees and other optional service fees, when passenger was not at
fault and did not use the ticket that is refundable.