CIVIL CODE

34 provisions 1736 -The extraordinary responsibility of the

1732 Definition of common carriers common carrier lasts from the time the goods are
COMMON CARRIER unconditionally placed in the possession of, and
1 Association of persons, corporations.. offering received by the carrier for transportation until the
services to the PUBLIC for a same are delivered, actually or constructively, by the
COMPENSATION carrier to the consignee, or to the person who has a
2 There is a CONTRACT If violated = file right to receive them, without prejudice to the
breach of contract of carriage provisions of Article 1738.
3 PARTIES:
1 1. Shipper/consignor
2 2. Common carrier itself person who 1736 Possession delivery (actual or constructive)
obligates himself to transport Actual delivery
3 3. Consignee person who receives the Constructive Delivery
gooods 1. Notice was already given to the consignee
regarding arrival of the cargoes and
GOVERNING LAWS 2. The consignee was given reasonable time to
1766 In all matters not covered in this code, the: Code release it even though there is no actual release
of Commerce & Special Laws (1738)
1753 The law of the country to which the goods are
delivered shall govern the liability of the common carrier 1737 Continuing liability even when they are
in case of LDD temporarily unloaded or stored in transit; E: Right of
stoppage in Transitu
SEA SHIPMENT COASTWISE Diligence required: Diligence of a good father of a family
-Governinglaw: 1. Civil Code 2. Code of Commerce & Why is the diligence reduced?
SPL -Because when the shopped availed of RSIT, the
Governing if from Phil to another country - law of the transpo contract no longer exists - X acting as
COUNTRY OF DESTINATION common carried ; Acting as bailee or warehouse
GR: Law of the country of destination - E: If parties manager
stipulate that COGSA governs = COGSA governs
Art. 1737. The common carrier's duty to observe
LAND TRANSPORTATION extraordinary diligence over the goods remains in
NCC + CC + SPL full force and effect even when they are temporarily
unloaded or stored in transit, unless the shipper or
AIR TRANSPORATION owner has made use of the right of stoppage in
DOMESTIC NCC + CC + SPL transitu.
INTERNATIONAL - Warsaw Convention Governs Art. 1738. The extraordinary liability of the common
(primary law); Why? Philippines participated in the carrier continues to be operative even during the
convention and agreed = bound time the goods are stored in a warehouse of the
HIGH CONTRACTING PARTIES countries that carrier at the place of destination, until the
participated and adhered to the warsaw convention consignee has been advised of the arrival of the
NTERNATIONAL FLIGHT Flight from one HCP to goods and has had reasonable opportunity thereafter
another HCP to remove them or otherwise dispose of them.

In case of breach of contract, where do you file? 1734 DEFENSES OF A COMMON CARRIER Art.
Place of principal domicile of the carrier 1734. Common carriers are responsible for the loss,
Place of principal business place of the carrier destruction, or deterioration of the goods, unless the
Place where you purchased ticket same is due to any of the following causes only:
Place of destination (1) Flood, storm, earthquake, lightning, or other
X residence of plaintiff natural disaster or calamity;
(2) Act of the public enemy in war, whether
ART. 1733 EXTRAORDINARY DILIGENCE international or civil;
Common carriers, from the nature of their business (3) Act of omission of the shipper or owner of the
and for reasons of public policy, are bound to goods;
observe extraordinary diligence in the vigilance over (4) The character of the goods or defects in the
the goods and for the safety of the passengers packing or in the containers;
transported by them, according to all the (5) Order or act of competent public authority.
circumstances of each case.
1735 PRESUMPTION OF FAULT/Negligence IN
CASE OF LDD UNLESS PROVED THAT CC
EXERCISED EO DILIGENCE
DURATION OF LIABILITY 1736, 1738, 1737
1734 CALAMITY (FLEC) REQUISITES PARTIES TO CARRIAGE OF GOODS
1. Natural, must be the only and proximate cause 3. Shipper
2. Before, during and after the calamity, the CC must 4. Carrier
prevent or minimize LDD 5. Consignee
PERFECTION OF CONTRACT OF TRANSPORTATION
1741 CONTRIBUTORY NEGLIGENCE OF SHIPPER
6. Contract to Carry perfected by mere consent
OR OWNER EQUITABLY REDUCES LIABILITY - If 7. Contract of Carriage or of Common
there is CN by shipper CC is still liable but it will be Carrier real contract because facilities
equitably reduced - applies to cargoes have to be used before contract is perfected
PRIVATE CARRIER One which, without being engaged
PUBLIC ENEMY REQUISITES in the business of carrying as a public employment,
1 PROXIMATE AND ONLY CAUSE of the loss undertakes to deliver goods or passenger for
2 Common carrier excised DUE DILIGENCE to prevent compensation (single transaction)
or minimize the loss before, during or after occurrence
of the disaster
3 Existence of actual state of WAR CHARTER PARTY A contract by which an
entire ship or some principal part thereof, is let
NEGLIGENCE OF SHIP OWNER by the owner to another person for a specified
a. When it is the SOLE AND PROXIMAYTE time or use transforms CC to PC
cause = absolute defense REGISTERED OWNER RULE
b. When it is CONTRIBUTORY = partial - GR: Registered owner of the vehicle is liable for any
defense damage caused by the negligent operation of the
vehicle although the same was already sold or
BAGGAGE conveyed to another at the time of the incident
o Hand carried = Ordinary diligence E: Vehicle stolen from a garage without
o Checked in = EOD the owners knowledge and consent
PRIMARY OBLIGATIONS OF A COMMON CARRIER IN PRIMARY OBLIGATIONS OF A COMMON CARRIER IN
THE THE
CARRIAGE OF PASSENGERS (U-STAB) CARRIAGE OF GOODS (PASTE)
1. Duty to observe UTMOST diligence to passenger 1. Duty to deliver the goods to the proper PERSON
2. Duty to SEASONABLY bring the passenger to 2. Duty to ACCEPT the goods
designation 3. Duty to SEASONABLY deliver the goods to the
3. Duty to TRANSPORT the passenger destination
safely to the agreed destination 4. Duty to TRANSPORT the goods safely at the agreed
4. Duty to ACCEPT passengers without discrimination destination
5. Duty to take care of the passengers BAGGAGE 5. Duty to exercise EXTRAORDINARY diligence
DILIGENCE IN THE SELECTION OF AND EFFECTS OF INEXCUSABLE DELAY:
SUPERVISION OF 1. Carrier still has duty to exercise EOD
EMPLOYEE 2. Natural disaster X free carrier from responsibility
o GR: Based on contractual obligation = X exempt 3. Delay is without just cause = CC X limit its liability for
LDD
from liability E: Based on quasi-delict
4. Liable for damages caused by delay
= available as defense 5. Consignee may exercise his right to abandon
DUTY TO ACCEPT GOODS:
DOCTRINE OF LAST CLEAR CHANCE Where both o GR: CC duty bound to accept passengers and
parties are negligent but the negligent act of one is cargo without discrimination (DDUO-CITES)
appreciably later than that of the other, or where it is E:
impossible to determine whose fault or negligence caused 1. Goods are DANGEROUS
the loss, the one who had the last clear opportunity to 2. Goods will be exposed to untoward
avoid the loss but failed to do so, is chargeable with the DANGER such as flood, capture by
loss only available between 2 colliding vehicles because it enemies
is an action based on tort or quasi-delict 3. Goods are UNFIT for transportation
4. Acceptance would result to
OVERLOADING
5. Goods = CONTRABANDS or illegal
DEFECT OR CHARACTER OF GOODS 6. INJURIOUS to health
7. Failure to tender goods on TIME
1Proximate cause
8. Goods like livestock will be
2CC is obliged to observe EO diligence to lessen or EXPOSED to diseases
forestall further damage 9. STRIKE

PASSENGER One who travels in a public conveyance by

virtue of a contract, express or implied, with the carrier as to
the payment of fare or that which is accepted as an equivalent
thereof
OBLIGATIONS OF COMMON CARRIER IN TRANSPO
PARTIES TO CARRIAGE OF PASSENGERS OF PASSENGERS
1. Common Carrier 1. Accept the cargo or passengers w/o
2. Passenger discrimination
EXCEPTIONS:
 1.If the cargo is dangerous or hazardous - CARRIERS LIEN the moment the shipper
2. If the cargo arrives later than time stipulated fails to pay thefreight, the CC has a right or lien
2. Obligation to deliver on the cargoes of the shipper CC has right to
Where? place where stipulated in the bill of lading sell or auction the property. That is why it cannot
What time? because

- Time is important because late delivery will 3. PAY DEMORAGE

cause monetary loss 1 DEMORAGE compensation or damages
- At the time stipulated paid for detaining the CC or vessel for a
- If no time stipulated reasonable time certain beyond stipulated period
shouldered by the shipper
How to determine reasonable time:
Character of the goods (ex. perishable); and Distance OBLIGATIONS OF COMMON CARRIER IN TRANSPO
OF PASSENGERS
Any delay in the delivery will make the CC liable Basis: 1. ACCEPT PASSENGER WITHOUT
1. 1740 if there is delay, CC DISCRIMINATION
will be liable despite natural 2. TRANSPORT PASSENGER SAFELY
disaster
1755 Mandate of the law for CC
2. 1747 If the common carrier delays or deviates
to exercise ED in transporting
from route common carrier cannot avail of contract
passengers
limiting carriers liability
The exercise of ED would depend on
the circumstances presented to you
DEVIATION MARINA has already pre-
3. EXERCISE EXTRAORDINARY DILIGENCE
determined route from one place to another
1733 safety of the passengers
1755 specifically for passengers
TRANSSHIPMENT -Cargo is transferred from one
carrier to another
GR: X allowed regardless of better durability or state Art. 1755. A common carrier is bound to carry the
(new) of other CC or even if the 2 vessels are owned passengers safely as far as human care and
by the same company foresight can provide, using the utmost diligence of
very cautious persons, with a due regard for all the
- E: Unless the transshipment is allowed under
stipulation circumstances.

DUTY OF PASSENGER/SHIPPER
3. Observe extraordinary diligence 1. To deliver
- When do you know that there is EO? 2. To pay freight
1. It must prove that vessel is SEAWORTHY: 3. To pay other costs
1. If the vessel is FIT, engineering is well
done, very good materials, vessel can 1744 Can you stipulate to bring down EO to less:
meet the normal hazards of the sea GR: YES! But it should not be lower than DOGFOA
2. CARGO WORTHY provided that it is:
It has the ability to transport cargo 1. In Writing and signed
Case: Shipper has no obligation to check 2. Valuable consideration other than the
the vessel if cargo worthy services rendered by common carrier
3. Must have all the EQUIPMENT 3. Reasonable, just and not contrary to law
4. Complete, capable, licensed, trained
MANPOWER 1745 Stipulations that are contrary to law (memorize!)
2. Person themselves must transport cargoes RLD GETD
1. That the goods are transported at the risk of the
with utmost diligence observing the care that an owner or shipper
ordinary prudent man would observe 2. That the common carrier will not be liable for
OBLIGATIONS OF THE SHIPPER any loss, destruction or deterioration of the
goods
1. DUE DILIGENCE IN AVOIDING DAMAGE 3. That the common carrier need not observe
1741 If the proximate cause of the LDE is because of any diligence in the custody of goods
thenegligence of the CC, the CC will be liable but if there 4. That the common carrier shall exercise a
is CN of the passenger, it will be equitably reduced degree of diligence less than that of a good
- E: It will not be reduced the moment there is father of a family or of a man of ordinary
damage or injury to the passenger prudence in the vigilance over the movables
transported
2. PAY THE FREIGHT
 5. That the common carrier shall not be carrier is liable even if the passenger has not
responsible for the acts or omissions of his or yet boarded the bus
its employees - WHY? The law wants to protect the safety of
6. That the common carriers liability for acts the passenger and wants to impose an
committed by thieves or of robbers, who do not obligation to the bus company that when he
act with grave or irresistible threat, violence or offers, the passenger is in a safe place stop and
force, is dispensed with or diminished offer your services at a safe place (ex. dont do
7. That the common carrier is not responsible for it in the middle of the road cause you will be
the LDD of goods on account of defective - liable) cause you will be liable)
condition of the car, vehicle, ship, airplane or END:
other equipment used in the contract of carriage o From the time the passenger has
alighted from the CC and has reasonably
1734 PRESUMPTION IN CASE OF LED THAT CC put himself in a safe place
WAS NEGLIGENT/AT FAULT o The mere fact that the passenger has already
1735 PRESUMPTION IN CASE OF PASSENGERS alighted the bus it does not cut the ED
DEATH OR INJURY THAT CC WAS NEGLIGENT/AT responsibility of the bus the passenger should
FAULT be at a reasonably safe place only time when
the CCs ED is over
Legal Issues to Address: o WHY? For the CC to stay in a place
1. Is he a passenger? where the passenger can alight safely (x
o PASSENGER those who have entered into in the middle of the road)
a contract, implied or express, to be
transported from one place to another B. TRAIN/LRT
o Instances: START:
1. Without intention to pay X passenger o From the time the passenger has purchased a ticket
2. Entered surreptitiously X passenger o Even if the passenger has not boarded the train yet
3. Enter who has not paid but with intention to pay o 1763 injury caused by a stranger or
Passenger fellow passenger
END:
4. If person boarded the bus in an unusual place of
o From the time the person has alighted the
the bus (ex. roof) passenger
LRT unit and has gone to a safe place
5. If person boarded the wrong bus passenger
E: if he has already been informed that he entered AIR TRANSPORATION
the wrong bus and he has an opportunity to
START:
leave the bus X passenger
6. If the person was asleep and was not able to get From the time the passenger checks in and is in the pre
off destination and was informed and awaken that he departure area (submitted yourself to the custody of the CC)
has missed his destination + opportunity to get off + o Airplane ticket purchase only X make the CC liable at
X get off X passenger once
7. Newsboy, concessionaire on train abroad
passenger END: From the time you alighted the plane and has gone in a
safe place or outside the custody of the CC
8. Driver/bus conductor X passenger
o But they should still exercise ED LIABILITY OF COMMON CARRIER
o However there is no breach of 1759 - Liable for acts of employee even if the employee
contract of carriage between has actedbeyond its authority or violated the orders of the
him and his employer since they CC
are not passengers - CC cannot use a defense that the CC exercised
o If something happens to them bus will be liable DGFOAF in selecting and supervising his employee
under workmens compensation law, X breach in a case of breach of contract
of contract of carriage
2. Did the CC exercise ED in transporting the 1763 - Liable for the acts of a stranger and co-passenger
passenger? - Stranger - Somebody who just entered the bus
3. When will this ED of CC start and end? and hurt somebody there
Land Transportation Bus - IMPT: In order for the CC to be free from liability in
cases of hold-ups and injuries cause by stranger,
START - From the time the bus has stopped to take
there must be IRRESISTABLE FORCE OR THREAT
in passengers and the passenger attempted to board without this, CC will be liable
the bus - Example:If hold up lang na walang kwenta CC liable
- If there was an offer and the offer was because they could have prevented it
accepted there is already an implied If hold up na may arms, etc CC x liable
contract Hypo: Security agent rode the bus to which he is an
- The moment the bus stops and something employee to go to his office in Cubao, saw his GF with another
has happened to the passenger, the common man and shot them liable under 1763 (co-passenger) and not
under 1759 (employee)
 aerodynamics laws and aircraft science
OBLIGATIONS OF SHIPPER OR CONSIGNEE AND (EQUIPMENT)
PASSENGER 3. Vessel has a competent captain and crew who
1. Due diligence to avoid damage or injury exercised EOD in operating the aircraft
2. Bound to pay the consideration in the form of freight BILL OF LADING A written acknowledgement of
or fare the receipt of goods and an agreement to transport
MEANING OF EXTRAORDINARY DILEGENCE and to deliver them at a specified place to a person
o IN CARRIAGE OF GOODS The EOD in the named or on his order
vigilance over the goods tendered for shipment
requires the common carrier to know and to
follow the required precaution for avoiding
damage to or destruction of the goods entrusted CASES FILED:
to it for sale, carriage and delivery. It requires the 1. CULPA-CONTRACTUAL
common carrier to render service with the Filed against: the common carrier
greatest skill and foresight and to use all Breach of contract
reasonable means to ascertain the nature and Preponderance of evidence
characteristics of the goods tendered for
shipment and to exercise due care in the 2. QUASI-DELICT
handling and stowage, including such methods
Example: Vessel was moving to the wharf
as their nature requires
o IN CARRIAGE OF PASSENGERS A CC is loaded with cargoes and when it was about to
dock, it lost control and hit the tier and
bound to carry passengers safely as far as
destroyed the cargoes owner of tier and
human care and foresight can provide, using
cargoes filed case against the carrier
the utmost diligence of a very cautious person
- Owner of the tier can file case for Quasi-delict
with due regard for all circumstances
- Owner of the cargo can file case for Culpa-
STIPULATION LIMITING/REDUCING CCS LIABILITY contractual
Based on Torts
o GRATUTIOUS PASSENGERS - limit liability
but not for willful acts or gross negligence
3. CULPA-CRIMINAL
o ACCOMODATION PASSENGERS only
Filed against the driver
Ordinary Diligence required
CC subsidiarily liable for civil liability of the
STIPULATION LIMITING/REDUCING CCS LIABILITY driver
DAMAGES
SEAWORTHINESS: (RASEM)
1. MORAL DAMAGES Anxiety, mental anguish, hurt
1. Fitness of the vessel itself to withstand the rigors of
feelings, sleepless nights
the voyage
GR: X awarded in culpa-contractual
2. Fitness of the vessel to store the cargoes
and accommodate passengers to be E: 1) Death 2)Gross negligence
transported
3. Vessel is adequately equipped and 2. EXEMPLARY DAMAGES
properly manned with sufficient number Awarded to set an example to the public
of competent officers and crew If there is one or more aggravating circumstance
CARGOWORTHINESS 3. NOMINAL DAMAGES
1. The ship must be sufficiently strong and To vindicate right of the person
equipped to carry the particular kind of cargo 4. ACTUAL DAMAGES
which she has contracted to carry and Life expectancy = (2/3 x 80 age) x (income
2. Her cargo must be so loaded that it is safe for expenses)
her to proceed on voyage
TRANSSHIPMENT MARITIME LAW AND NCC
o The act taking cargo out of one ship and loading it in Complementary (1766)
another
X conflict with NCC
or the transfer for further transportation
from one ship or conveyance to another MARITIME LAW
EOD IN CARRIAGE BY LAND- (CT) System of law which deals with affairs, business,
1. Condition of vehicle not defective, good order and vessels, crew of the sea and conveyance of property
condition and persons
2. X breach of traffic rules
Transportation by the sea
AIRWORTHINESS (REC)
Transpo by sea is usually used when it involves big
1. The aircraft must be in such condition
that it must be able to withstand the shipments
rigors of flight Transportation = life blood of the economy
2. The aircraft, its engines, propellers and other JURSDICTION:
components and accessories are of proper - Metro Manila Amount is more than 400k =
design and construction and are safe for air RTC Less than = MTC
navigation purposes, such design and - Provinces Amount involved is more than 300k =
construction being consistent with accepted RTC Less than = City Court
engineering practice and in accordance with
 4. Expenses for repair on vessel completed before loss
NATURE OF MARITIME LIABILITY cost of repair has already been made and due but
- REAL AND HYPOTHECARY IN NATURE (LIMITED not yet paid by ship owner
LIABILITY RULE) 5. In case there no total loss and the vessel is not
Depends on the happening of something abandonment
The owner/ ship agent of the vessel will not be liable for the 6. Collision between 2 negligent vessels
value of the cargoes that are lost if the vessel is totally lost Examples:
In sum: 1. Workmens Compensation
2. If the negligence is caused by ship
NO OR TOTAL LOSS OF
agent/owner or concurrent negligence of
VESSEL = ship agent and ship captain
NO LIABILITY a. Vessel from Manila to Iloilo ship was overloaded
PARTIAL LOSS = LIABLE ship was totally lost heirs filed breach of contract
owner shall be liable
Example 1:
Shipment from HK to Philippines b. Despite knowing that there was advice of
Value of vessel (150M); Cargo (200M) Vessel sank typhoon, common carrier still travelled liable
because of negligence of captain Although the TOTAL
LOSS of the vessel is due to the negligence of the *SHIP AGENT Acts as the owner in the port where the ship
captain, the owner/ship agent will no longer be liable = x enters
recover anything from the shipowner
Reason behind law: To encourage the shipping VESSEL
business from freeing ship owners from liability because X cover small boats, hospital boats
the sea transportation business is very risky Why do we need to distinguish between
Example 2: maritime vessel and vessel?
Ship cargo from HK to Philippines Cargo - Because if we are referring to a maritime vessel, there must
(200M); Cargoes totally lost, but vessel first be a protest filed
PARTIAL LOSS only Case: The small boat went near the big vessel and the small
- CARGO OWNER CAN RECOVER because partial vessel was sucked by the big vessel and one of the passengers
loss only was hit by a propeller
Example 3: Contention of vessel: should be done within 24 hours
- Partial loss of ship. therefore, cannot file claim
o Can you recover for your cargo that was lost? YES SC:
o E: Is there a possibility that the ship owner will be - No need for protest because the small boat is not a
free from liability? YES, IF HE maritime boat
ABANDONS THE SHIP because the ship will now - Also, the person who should make the protest could
go to the creditors and they can auction it not do it because of his situation (injured brought to
o In sum: hospital)
GR: Yes, liability
E: Abandoned ship Summary:
Maritime vessel: Protest is
Example 4: needed
Vessel totally lost when it reached Hawaii; shipments are Not maritime vessel: No
also totally lost Cargo owners filed case to recover value of protest needed
their lost cargoes
- Can they recover? NO MARITIME COMMERCE
o If partial loss of vessel, cargo totally lost + notice of o 573 869 of CODE OF COMMERCE
abandonment? X recover o That system of laws which particularly relates
o If vessel totally lost + no abandonment? X recover to the affairs
o PRINCIPLE: ABANDONMENT and business of the sea, to ships, their
IS ONLY A CONDITION crews and navigation and to maritime
PRECEDENT WHEN THE conveyance of persons and property
VESSEL IS TOTALLY LOST CHARACTERISTICS OF MARITIME TRANSACTION
1. REAL real contract, registration required
EXCEPTIONS TO LIMITED LIABILITY: (CARGO 2. HYPOTHECARY the liability of the carrier in
OWNER CAN STILL RECOVER DESPITE connection with losses related to maritime
TOTAL LOSS) contracts is confined to the vessel, which stands
1. Workmens Compensation as the guaranty for their settlement
2. Injury or damage due to ship owner or to the MERCHANT VESSEL engaged in maritime
concurring negligence of the ship owner or to commerce, whether foreign or otherwise
the concurring negligence of the ship owner and VESSEL Any barge, lighter, bulk, carrier, passenger
the captain ship, freighter, tanker, container, ship, fishing boats or
E: If negligence was only due to ship other artificial contrivances utilizing any source of motive
captain = limited liability applies power, designed, used or capable of being used as a
3. The vessel is insured means of water transportation operating either as a
common carrier, including fishing vessels covered under
PD 43
 o E: 2. The extra lay days an extension (it is not for free).
1. Those owned or operated by the AFP and 3. Demurrage the penalty or fee for the excess
by foreign government for military purpose time spent in unloading and loading.
2. Bancas, sailboats and other waterborne 4. Primage compensation or fee given to the captain
contrivances less than 3 gross tons capacity or crew which is due to the special care of captain
and not motorized and crew
MARITIME LIEN constitutes a present right of 5. Embargo legal restriction of departure of vessels
property in the ship, a jus in re, to be afterward 6. Contract of towage contract for a barge to be
enforced in admiralty by process in rem towed by a ship
DOCTRINE OF LIMITED LIABILITY (HYPOTHECARY
What are the REQUISITES of a Charter party?
RULE)
1. The Charter Party must be in writing, signed, and
- The exclusively real and hypothecary nature of with the consent of the parties
maritime law- operates to limit the liability of the 2. Existence of the vessel at the disposal of the
shipowner to the value of the vessel, earned charterer
freightage and proceeds of the insurance, if any. 3. Stipulation as to the freightage
o GR: No vessel, no liability (Total loss) 4. It must comply with the appropriate formalities:
E: (WORK-AIIR) a. Must specify the kind, name, tonnage, flag
1. Workmens compensation raised, port, registry, the names, surnames, &
2. X total loss and X abandoned domiciles of the ship captain, ship agent, and
3. Injury or damage due to ship owner or to the ship owner, capacity, dates of loading and
concurring negligence of shipowner and unloading, the lay days, extra lay days,
captain
demurrage, primage
4. Vessel is insured
5. Expenses for repair and provisioning of the Must the Charter Party always be in writing and signed to
ship be valid?
o Ship owner is the party who may invoke the limited GR: Yes, according to Art. 652.
liability rule o E: Art. 653 provides that when cargo is already
o Cases where applicable:
delivered or received without the Charter Party
1. Civil liability for indemnities to 3rd persons being signed, the stipulation should be
2. Indemnities for negligent act of the captain
interpreted to be that contained in a bill of
3. Collision
4. Liability for unpaid wages of captain and crew lading.
and for advances made by the ship agent if the Q: The parties agreed to deliver cargo from point A to
vessel is lost by shipwreck point B. The Charter Party stipulated that there will
o be a demurrage. But when the cargo loaded and
o LIABILITY OF COMMON CARRIER FOR DEATH the vessel was in voyage, there was a deviation to
o OR INJURIES TO point C, with a bill of lading to that effect. Shall there be
o PASSENGERS CAUSED BY: a payment of demurrage?
o
ACTS OF EMPLOYEES ACTS OF STRANGERS NO!
OR PASSENGER The SC held: since the goods were received although
DILEGENCE EOD Ordinary Diligence the Charter Party was not signed it is still valid, but
REQUIRED the provision in the bill of lading will apply. Since the
NATURE OF TORT (QUASI-DELICT) GR: X liable bill of lading did not contain a stipulation as to
LIABILITY E: If common carriers demurrage, then there is no demurrage
However, employee must employee could have What are the 2 KINDS of Charter Party?
be on duty at the time of prevented or stopped1.DEMISE
the or BAREBOAT
the act act or omission through the vessel is chartered in itself as a whole
DGOAF (hence, bare) and need not provide that the
crew is included because of the principle that the
STIPULATION LIMITING/REDUCING CCS LIABILITY control of the crew is given to charterer, along
with the navigation etc.
GOODS PASSENGERS He is deemed the OWNER of the vessel and
Allowed less than EOD provided X lessened or the EMPLOYER of the crew.
dispensed with Q: A was part of the crew of a vessel. After
WSVR through stipulations 3 months, the vessel was chartered. A was
or posting terminated by the charter. A is now claiming
notices that he was terminated unlawfully. Against
What is a CHARTER PARTY? who do you file the case?
It is a document in itself and it does not refer The charterer. He has now the burden to
to a party in a controversy. prove that it is not a bareboat charter
Simply put, it is in the nature of a contract of lease, party. (SC Case)
having for its object the whole or part of a vessel. PRESUMPTION OF BAREBOAT:in case of doubt,
the charter party is always presumed to be a
DEFINITION OF TERMS: BAREBOAT charter party, and not affreightment.
1. The lay days the number of days given to
unload/load (this is free) What is the difference between the 2?
 If not dangerous, he can still opt to deliver but at a higher
BAREBOAT AFFREIGHTMENT freight.
Charter of whole vessel Charter of part of the vessel
Converted to private carrier X converted In case of expiration of lay days, the cargo is not yet
ready for loading, then the vessel can leave without
What is the significance of the conversion? them
There could be a stipulation limiting liability in case of
negligence of the ship owner and it will be valid in the 2. AFFREIGHTMENT
case of bareboat but not in affreightment. 2 kinds:
1. Time period
2. Voyage
Can a ship captain enter into a charter party over the
vessel of the ship owner?
Yes, a ship captain who entered into a charter party
What are the loans on BOTTOMRY & RESPONDENTIA?
even against will of the owner who will be civilly liable These are SPECIAL kinds of loans involving vessel
for damages to the owner. (bottomry) and cargo (respondentia).
Still, the contract is VALID. Because the vessel and consequently its cargo is
left at the mercy of the sea these objects are made
If the vessel is no longer seaworthy, the captain shall: collaterals.
1. Look for another vessel within the parameter of
150KM for the purpose of transferring the cargo and
continue with the voyage. If he is indolent in
searching for another vessel then he is liable for
whatever damages that may occur. The cargo
owners will now have the right to look for another
vessel at the expense of the captain or the ship
owner
2. If he cannot find another vessel, he may deposit the
vessel which is not seaworthy

Can the captain sell cargo?

Laws Govern
Yes, if under special circumstances such as for Primary Civl Code / Sec Code of Commerce and
necessity, provision, food, and repair of the vessel, Spcl Laws
the captain can sell but must pay the owner:
o If preserving the cargo is more expensive a. Coastline Transpo:
than the value -Domestic Manila to Davao NCC; Code of C
cargo itself
o If the consignee cannot be found and there is
b. Sea Transportation
refusal to sell or release the cargo.
Cargo is NOT liable to pay freight in the event of: b.1 Php to abroad export
o A shipwreck or the stranding or the loss of the - law of country of destination Art 1753
vessel E: unless the vessel is ultimately repaired b.2 Abroad to Php Civil Code; E: COGSA Stipulation
and Note: Domestic sea freight stipulation not allowed = void
brought to its destination, in which
case the cargo salvaged during
shipwreck, will be liable in C. Land Transpo CC & Special Laws
proportion to the distance travelled D. Air Transportation
o In case of confiscation because of piracy; D. 1 Domestic NCC; Code of Commerce; Special
Laws
A charterer is deemed the owner of the vessel as a D.2 International F. Provisions of Warsaw
whole and should not accept cargo more than it Convention
can handle.

Owner must respect the capacity of the vessel.

Owner once he notices that cargoes were
clandestinely loaded, he may remove it.