A. DEGREE OF CARE OVER GOODS Article 1742.
Article 1742. Even if the loss, destruction, or deterioration of the goods should be caused by the
i. DUTY TO EXERCISE EXTRAORDINARY DILIGENCE
Article 1733. 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 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.
ii. PRESUMPTION OF NEGLIGENCE
Article 1735. 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.
iii. DURATION OF LIABILITY
Article 1736. 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.
iv. DEFENSES AVAILABLE TO COMMON CARRIERS
Article 1734. 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 of competent public authority.
Article 1739. 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, 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.
Article 1740. If the common carrier negligently incurs in delay in transporting the goods, a natural
disaster shall not free such carrier from responsibility.
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.
Article 1743. 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.
B. FORTUITOUS EVENT
Article 1739. 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, 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.
C. PUBLIC ENEMY (A1739)
D. IMPROPER PACKING
Article 1742. 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.
E. ORDER BY PUBLIC AUTHORITY
Article 1743. 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.
a. CONTRIBUTORY NEGLIGENCE OF THE SHIPPER
Article 1741. 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.
b. STIPULATIONS LIMITING THE LIABILITY OF CARRIER
Article 1744. 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.
 Article 1748. An agreement limiting the common carrier's liability for delay on account of
strikes or riots is valid.
Article 1749. 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.
Article 1747. 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.
I. RULE ON THE PRESUMPTION OF NEGLIGENCE DESPITE STIPULATION

Article 1750. A contract fixing the sum that may be recovered. by the owner or shipper for Article 1752. Even when there is an agreement limiting the liability of the common carrier in the
the loss, destruction, or deterioration of the goods is valid, if it is reasonable and just vigilance over the goods, the common carrier is disputably presumed to have been negligent in case
under the circumstances, and has been fairly and freely agreed upon. of their loss, destruction or deterioration.

F. REQUISITES FOR VALIDITY J. DUTY TO DELIVER THE GOODS

a. TIME OF DELIVERY
Article 1744. A stipulation between the common carrier and the shipper or owner limiting the b. CONSEQUENCES OF DELAY
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: Article 1740. If the common carrier negligently incurs in delay in transporting the
(1) In writing, signed by the shipper or owner; goods, a natural disaster shall not free such carrier from responsibility.
(2) Supported by a valuable consideration other than the service rendered by the common carrier;
and Article 1747. If the common carrier, without just cause, delays the transportation of
(3) Reasonable, just and not contrary to public policy. 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
Article 1751. The fact that the common carrier has no competitor along the line or route, or a part of the goods.
thereof, to which the contract refers shall be taken into consideration on the question of whether or
not a stipulation limiting the common carrier's liability is reasonable, just and in consonance with c. PLACE OF DELIVERY
public policy. d. TO WHOM DELIVERY SHALL BE MADE

G. INVALID STIPULATIONS Article 1240. Payment shall be made to the person in whose favor the obligation has
been constituted, or his successor in interest, or any person authorized to receive it.
Article 1745. Any of the following or similar stipulations shall be considered unreasonable, unjust (1162a)
and contrary to public policy:
(1) That the goods are transported at the risk of the owner or 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 not 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 movables transported;
(5) That the common carrier shall not be responsible for the acts or omission 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.

H. EFFECT OF DELAY