Professional Documents
Culture Documents
SECTION 353. The legal evidence of the contract between the shipper and
the carrier shall be the bills of lading, by the contents of which the disputes
which may arise regarding their execution and performance shall be decided,
no exceptions being admissible other than those of falsity and material error
in the drafting. After the contract has been complied with, the bill of lading
which the carrier has issued shall be returned to him, and by virtue of the
exchange of this title with the thing transported, the respective obligations
and actions shall be considered cancelled, unless in the same act the claim
which the parties may wish to reserve be reduced to writing, with the
exception of that provided for in Section 366.
In case the consignee, upon receiving the goods, cannot return the bill of
lading subscribed by the carrier, because of its loss or of any other cause, he
must give the latter a receipt for the goods delivered, this receipt producing
the same effects as the return of the bill of lading.
SECTION 355. The responsibility of the carrier shall commence from the
moment he receives the merchandise, personally or through a person
charged for the purpose, at the place indicated for receiving them.
SECTION 356. Carriers may refuse packages which appear unfit for
transportation; and if the carriage is to be made by railway, and the
shipment is insisted upon, the company shall transport them, being exempt
from all responsibility if its objections, is made to appear in the bill of lading.
SECTION 358. If there is no period fixed for the delivery of the goods the
carrier shall be bound to forward them in the first shipment of the same or
similar goods which he may make point where he must deliver them; and
should he not do so, the damages caused by the delay should be for his
account.
SECTION 359. If there is an agreement between the shipper and the carrier
as to the road over which the conveyance is to be made, the carrier may not
change the route, unless it be by reason of force majeure; and should he do
so without this cause, he shall be liable for all the losses which the goods he
transports may suffer from any other cause, beside paying the sum which
may have been stipulated for such case.
When on account of said cause of force majeure, the carrier had to take
another route which produced an increase in transportation charges, he shall
be reimbursed for such increase upon formal proof thereof.
SECTION 360. The shipper, without changing the place where the delivery is
to be made, may change the consignment of the goods which he delivered to
the carrier, provided that at the time of ordering the change of consignee the
bill of lading signed by the carrier, if one has been issued, be returned to
him, in exchange for another wherein the novation of the contract appears.
The expenses which this change of consignment occasions shall be for the
account of the shipper.
SECTION 361. The merchandise shall be transported at the risk and venture
of the shipper, if the contrary has not been expressly stipulated.
As a consequence, all the losses and deteriorations which the goods may
suffer during the transportation by reason of fortuitous event, force majeure,
or the inherent nature and defect of the goods, shall be for the account and
risk of the shipper. Proof of these accidents is incumbent upon the carrier.
SECTION 362. Nevertheless, the carrier shall be liable for the losses and
damages resulting from the causes mentioned in the preceding Section if it is
proved, as against him, that they arose through his negligence or by reason
of his having failed to take the precautions which usage has established
among careful persons, unless the shipper has committed fraud in the bill of
lading, representing the goods to be of a kind or quality different from what
they really were.
If those not delivered form part of the goods transported, the consignee may
refuse to receive the latter, when he proves that he cannot make use of
them independently of the others.
SECTION 364. If the effect of the damage referred to in Section 361 is merely
a diminution in the value of the goods, the obligation of the carrier shall be
reduced to the payment of the amount which, in the judgment of experts,
constitutes such difference in value.
SECTION 365. If, in consequence of the damage, the goods are rendered
useless for sale and consumption for the purposes for which they are
properly destined, the consignee shall not be bound to receive them, and he
may have them in the hands of the carrier, demanding of the latter their
value at the current price on that day.
If among the damaged goods there should be some pieces in good condition
and without any defect, the foregoing provision shall be applicable with
respect to those damaged and the consignee shall receive those which are
sound, this segregation to be made by distinct and separate pieces and
without dividing a single object, unless the consignee proves the
impossibility of conveniently making use of them in this form. The same rule
shall be applied to merchandise in bales or packages, separating those
parcels which appear sound.
SECTION 366. Within the twenty-four hours following the receipt of the
merchandise, the claim against the carrier for damage or average be found
therein upon opening the packages, may be made, provided that the
indications of the damage or average which gives rise to the claim cannot be
ascertained from the outside part of such packages, in which case the claim
shall be admitted only at the time of receipt.
SECTION 367. If doubts and disputes should arise between the consignee
and the carrier with respect to the condition of the goods transported at the
time their delivery to the former is made, the goods shall be examined by
experts appointed by the parties, and, in case of disagreement, by a third
one appointed by the judicial authority, the results to be reduced to writing;
and if the interested parties should not agree with the expert opinion and
they do not settle their differences, the merchandise shall be deposited in a
safe warehouse by order of the judicial authority, and they shall exercise
their rights in the manner that may be proper.
SECTION 368. The carrier must deliver to the consignee, without any delay or
obstruction, the goods which he may have received, by the mere fact of
being named in the bill of lading to receive them; and if he does not do so,
he shall be liable for the damages which may be caused thereby.
SECTION 370. If a period has been fixed for the delivery of the goods, it must
be made within such time, and, for failure to do so, the carrier shall pay the
indemnity stipulated in the bill of lading, neither the shipper nor the
consignee being entitled to anything else.
If no indemnity has been stipulated and the delay exceeds the time fixed in
the bill of lading, the carrier shall be liable for the damages which the delay
may have caused.
SECTION 371. In case of delay through the fault of the carrier, referred to in
the preceding Sections, the consignee may leave the goods transported in
the hands of the former, advising him thereof in writing before their arrival at
the point of destination.
When this abandonment takes place, the carrier shall pay the full value of
the goods as if they had been lost or mislaid. If the abandonment is not
made, the indemnification for losses and damages by reason of the delay
cannot exceed the current price which the goods transported would have
had on the day and at the place in which they should have been delivered;
this same rule is to be observed in all other cases in which this indemnity
may be due.
SECTION 372. The value of the goods which the carrier must pay in cases if
loss or misplacement shall he determined in accordance with that declared in
the bill of lading, the shipper not being allowed to present proof that among
the goods declared therein there were Sections of greater value and money.
Horses, vehicles, vessels, equipment and all other principal and accessory
means of transportation shall be especially bound in favor of the shipper,
although with respect to railroads said liability shall be subordinated to the
provisions of the laws of concession with respect to the property, and to what
this Code established as to the manner and form of effecting seizures and
attachments against said companies.
SECTION 373. The carrier who makes the delivery of the merchandise to the
consignee by virtue of combined agreements or services with other carriers
shall assume the obligations of those who preceded him in the conveyance,
reserving his right to proceed against the latter if he was not the party
directly responsible for the fault which gave rise to the claim of the shipper
or consignee.
The carrier who makes the delivery shall likewise acquire all the actions and
rights of those who preceded him in the conveyance.
The shipper and the consignee shall have an immediate right of action
against the carrier who executed the transportation contract, or against the
other carriers who may have received the goods transported without
reservation.
However, the reservation made by the latter shall not relieve them from the
responsibilities which they may have incurred by their own acts.
SECTION 374. The consignees to whom the shipment was made may not
defer the payment of the expenses and transportation charges of the goods
they receive after the lapse of twenty-four hours following their delivery; and
in case of delay in this payment, the carrier may demand the judicial sale of
the goods transported in an amount necessary to cover the cost of
transportation and the expenses incurred.
SECTION 375. The goods transported shall be especially bound to answer for
the cost of transportation and for the expenses and fees incurred for them
during their conveyance and until the moment of their delivery.
This special right shall prescribe eight days after the delivery has been
made, and once prescribed, the carrier shall have no other action than that
corresponding to him as an ordinary creditor.
SECTION 376. The preference of the carrier to the payment of what is owed
him for the transportation and expenses of the goods delivered to the
consignee shall not be cut off by the bankruptcy of the latter, provided it is
claimed within the eight days mentioned in the preceding Section.
SECTION 377. The carrier shall be liable for all the consequences which may
arise from his failure to comply with the formalities prescribed by the laws
and regulations of the public administration, during the whole course of the
trip and upon arrival at the point of destination, except when his failure
arises from having been led into error by falsehood on the part of the shipper
in the declaration of the merchandise.
If the carrier has acted by virtue of a formal order of the shipper or consignee
of the merchandise, both shall become responsible.
SECTION 379. The provisions contained in Sections 349 and following shall
be understood as equally applicable to those who, although they do not
personally effect the transportation of the merchandise, contract to do so
through others, either as contractors for a particular and definite operation,
or as agents for transportations and conveyances.
4. The auction shall be held on the day fixed, with the formalities prescribed
in the common law
for judicial sales.
5. If the sale should take place while the vessel is in a foreign country, the
special provisions
governing such cases shall be observed.
SECTION 580. In all judicial sales of any vessel for the payment of creditors,
the following shall
have preference in the order stated 2
1. The credit in favor of the public treasury proven by means of an official
certificate of competent
authority.
2. The judicial costs of the proceedings, according to an appraisement
approved by the judge or
court.
3. The pilotage charges, tonnage dues, and the other sea or port charges,
proven by means of
proper certificates of the officers intrusted with the collection thereof.
4. The salaries of the depositaries and keepers of the vessel and any other
expenses for its
preservation from the time of arrival at the port until the sale, which appear
to have been paid or be due
by virtue of an account verified and approved by the judge or court. cdtai
5. The rent of the warehouse where the rigging and stores of the vessel have
been taken care of,
according to contract.
6. The salaries due the captain and crew during its last voyage, which shall
be verified by means
of the liquidation to be made in view of the lists and of the books of account
of the vessel, approved by
the chief of the Bureau of Merchant Marine, where there is one, and in his
absence by the consul or
judge or court.
7. The reimbursement for the goods of the freight which the captain may
have sold in order to
repair the vessel, provided that the sale has been ordered through a judicial
proceedings held with the
formalities required in such cases, and recorded in the certificate of registry
of the vessel.
8. The part of the price which has not been paid to the said vendor, the
unpaid credits for materials
and labor in the construction of the vessel, when it has not navigated, and
those arising from the repair
and equipment of the vessels and from its provisioning with victuals and fuel
during the last voyage.
In order that the credits provided for in this subdivision may enjoy this
preference, they must appear by
contracts recorded in the registry of vessels, or if they were contracted for
the vessel while on a voyage
and said vessel has not returned to the port where it is registered, they must
be made with the
authorization required for such cases and annotated in the certificate of
registration of the vessel. cdtai
9. The amount borrowed on bottomry on the hull, keel, tackle, and stores of
the vessel before its
departure, proven by means of the contract executed according to law and
recorded in the registry of
vessels; those borrowed during the voyage with the authorization mentioned
in the preceding
subdivision, satisfying the same requisites; and the insurance premium,
proven by the insurance policy
or a certificate taken from the books of the broker.
10. The indemnity due the shipper for the value of the goods shipped which
were not delivered to
the consignees, or for averages suffered for which the vessel is liable,
provided that either appear in a
judicial or arbitration decision.
SECTION 581. If the proceeds of the sale should not be sufficient to pay all
the creditors
included in one number or grade, the residue shall be divided among them
pro rata.
SECTION 582. After the bill of the judicial sale at public auction has been
executed and
inscribed in the registry of vessels, all the other liabilities of the vessel in
favor of the creditors shall be
considered extinguished.
But if the sale should have been voluntary and should have been made while
the vessel was on a
voyage, the creditors shall preserve their rights against the vessel until it
returns to the port of her
registry, and three months after the inscription of the sale in the registry of
vessel or the arrival.
SECTION 583. If while on a voyage the captain should find it necessary to
contract one or more
of the obligations mentioned in subdivisions 8 and 9 of Section 580, he shall
apply to the judge or court
if he is in Philippine territory, and otherwise to the consul of the Republic of
the Philippines, should
there be one, and, in his absence, to the judge or court or proper local
authority, presenting the
for the expenses for repairing the vessel, and for other expenses which are
incurred by virtue of a
resolution of the majority.
They shall likewise be liable in the same proportion for the expenses for the
maintenance, equipment,
and provisioning of the vessel, necessary for navigation.
SECTION 592. The resolution of the majority with regard to the repair,
equipment, and
provisioning of the vessel in the port of departure shall bind the minority,
unless the minority members
renounce their interests, which must be acquired by the other co-owners,
after a judicial appraisement
of the value of the portion or portions assigned.
The resolutions of the majority relating to the dissolution of the partnership
and sale of the vessel shall
also be binding on the minority.
The sale of the vessel must be made at public auction, subject to the
provisions of the law of civil
procedure, unless the co-owners unanimously agree otherwise, saying
always the right of repurchase
and redemption provided for in Section 575.
SECTION 593. The owners of a vessel shall have preference in her charter
over other persons,
under the same conditions and price. If two or more of them should claim
this right, the one having the
greater interest shall be preferred; and should they have equal interests, the
matter shall be decided by
lot.
SECTION 594. The co-owners shall elect the manager who is to represent
them in the capacity of
ship agent.
The appointment of director or ship agent shall be revocable at the will of the
members.
SECTION 595. The ship agent, whether he is at the same time the owner of
the vessel, or a
manager for an owner or for an association of co-owners, must have the
capacity to trade and must be
recorded in the merchant's registry of the province.
The ship agent shall represent the ownership of the vessel, and may, in his
own name and in such
capacity, take judicial and extrajudicial steps in matters relating to
commerce.
SECTION 596. The ship agent may discharge the duties of captain of the
vessel, subject in every
case to the provision of Section 609.
If two or more co-owners apply for the position of captain, the disagreement
shall be decided by a vote
of the members; and if the vote should result in a tie, it shall be decided in
favor of the co-owner having
the larger interest in the vessel.
If the interests of the applicants should be equal, and there should be a tie,
the matter shall be decided
by lot.
SECTION 597. The ship agent shall designate and come to terms with the
captain, and shall
contract in the name of the owners, who shall be bound in all that refer to
repairs, details of equipment,
armament, provisions of food and fuel, and freight of the vessel, and, in
general, in all that relate to the
requirements of navigation.
SECTION 598. The ship agent may not order a new voyage, or make
contracts for a new charter,
or insure the vessel, without the authorization of its owner or resolution of
the majority of the coowners,
unless these powers were granted him in the certificate of his appointment.
cdasia
If he insures the vessel without authorization therefore, he shall be
subsidiarily liable for the solvency
of the insurer.
SECTION 599. The ship agent managing for an association shall render to his
associates an
account of the results of each voyage of the vessel, without prejudice to
always having the books and
correspondence relating to the vessel and to its voyages at their disposal.
SECTION 600. After the account of the managing agent has been approved
by a relative
majority, the co-owners shall pay the expenses in proportion to their interest,
without prejudice to the
civil or criminal actions which the minority may deem fit to institute
afterwards.
In order to enforce the payment, the managing agent shall be entitled to an
executory action ("accion
ejecutiva"), which shall be instituted by virtue of a resolution of the majority,
and without further
proceedings than the acknowledgment of the signatures of the persons who
voted for the resolution.
SECTION 601. Should there be any profits, the co-owners may demand of the
managing agent
the amount corresponding to their interests by means of an executory action
("accion ejecutiva"),
They vessel sold shall remain subject to the security of the payment of said
indemnity if, after the
action against the vendor has been instituted, the latter is found to be
insolvent.
SECTION TWO
CAPTAINS AND MASTERS OF VESSELS
SECTION 609. Captains, masters or patrons of vessels must be Filipinos, have
legal capacity to
contract in accordance with this code, and prove the skill, capacity, and
qualifications necessary to
command and direct the vessel, as established by marine or navigation laws,
ordinances, or regulations,
and must not be disqualified according to the same for the discharge of the
duties of the position. cdt
If the owner of a vessel desires to be the captain thereof, without having the
legal qualifications
therefor, he shall limit himself to the financial administration of the vessel,
and shall intrust the
navigation to a person possessing the qualifications required by said
ordinances and regulations.
SECTION 610. The following powers shall be inherent in the position of
captain, master or
patron of a vessel:
1. To appoint or make contracts with the crew in the absence of the ship
agent, and to propose said
crew, should said agent be present; but the ship agent may not employ any
member against the
captain's express refusal.
2. To command the crew and direct the vessel to the port of its destination, in
accordance with the
instructions he may have received from the ship agent.
3. To impose, in accordance with the contracts and with the laws and
regulations of the merchant
marine, and when on board the vessel, correctional punishment upon those
who fail to comply with his
orders or are wanting in discipline, holding a preliminary hearing on the
crimes committed on board the
vessel on the seas, which crimes shall be turned over to the authorities
having jurisdiction over the
same at the first port touched.
4. To make contracts for the charter of the vessel in the absence of the ship
agent or of its
consignee, acting in accordance with the instructions received and protecting
the interests of the owner
with utmost care.
5. To adopt all proper measures to keep the vessel well supplied and
equipped, purchasing all that
may be necessary for the purpose, provided there is no time to request
instruction from the ship agent.
6. To order, in similar urgent cases while on a voyage, the repairs on the hull
and engines of the
vessel and in its rigging and equipment, which are absolutely necessary to
enable it to continue and
finish its voyage; but if he should arrive at a point where there is a consignee
of the vessel, he shall act
in concurrence with the latter.
SECTION 611. In order to comply with the obligations mentioned in the
preceding Section, the
captain, when he has no funds and does not expect to receive any from the
ship agent, shall obtain the
same in the successive order stated below:
1. By requesting said funds from the consignee of the vessel or
correspondents of the ship agent.
2. By applying to the consignees of the cargo or to those interested therein.
3. By drawing on the ship agent.
4. By borrowing the amount required by means of a loan on bottomry.
5. By selling a sufficient amount of the cargo to cover the sum absolutely
indispensable for the
repair of the vessel and to enable it to continue its voyage. cd
In these two last cases he must apply to the judicial authority of the port, if
in the Philippines, and to
the consul of the Republic of the Philippines if in a foreign country, and where
there is none, to the
local authority, proceeding in accordance with the provisions of Section 583,
and with the provisions of
the law of civil procedure.
SECTION 612. The following obligations shall be inherent in the office of
captain:
1. To have on board before starting on a voyage a detailed inventory of the
hull, engines, rigging,
spare-masts, tackle, and other equipment of the vessel; the royal or the
navigation certificate; the roll of
the persons who make up the crew of the vessel, and the contracts entered
into with them; the lists of
passengers; the bill of health; the certificate of the registry proving the
ownership of the vessel and all
the obligations which encumber the same up to that date; the charter parties
or authenticated copies
thereof; the invoices or manifests of the cargo, and the memorandum of the
visit or inspection by
experts, should it have been made at the port of departure.
with the rigging and engines in good condition, and with the equipment
required for good navigation,
preserving under his responsibility a certificate of the memorandum of his
inspection, signed by all
those who may have taken part therein.
The experts shall be appointed, one by the captain of the vessel and another
by those who request its
examination, and in case of disagreement a third shall be appointed by the
marine authority of the port
or by the authority, exercising his functions.
5. To remain constantly on board the vessel with the crew while the cargo is
being taken on board
and to carefully watch the stowage thereof; not to consent to the loading of
any merchandise or matter
of a dangerous character, such as inflammable or explosive substances,
without the precautions which
are recommended for their packing, handling and isolation; not to permit the
carriage on deck of any
cargo which by reason of its arrangement, volume, or weight makes the work
of the sailors difficult,
and which might endanger the safety of the vessel; and if, on account of the
nature of the merchandise,
the special character of the shipment, and principally the favorable season in
which it is undertaken,
merchandise may be carried on deck, he must hear the opinion of the
officers of the vessel and have the
consent of the shippers and of the ship agent.
6. To demand a pilot at the expense of the vessel whenever required by the
navigation, and
principally when he has to enter a port, canal, or river, or has to take a
roadstead or anchoring place
with which neither he nor the officers and crew are acquainted.
7. To be on deck on reaching land and to take command on entering and
leaving ports, canals,
roadsteads, and rivers, unless there is a pilot on board discharging his duties.
He shall not spend the
night away from the vessel except for serious causes or by reason of official
business. cdtai
8. To present himself, when making a port in distress, to the maritime
authority if in the
Philippines and to the consul of the Republic of the Philippines if in a foreign
country, before twentyfour
hours have elapsed, and to make a statement of the name registry, and port
of departure of the
vessel, of its cargo, and the cause of arrival which declaration shall be visaed
by the authority or the
1. For all the damages suffered by the vessel and its cargo by reason of want
of skill or negligence
on his part. If a misdemeanor or crime has been committed, he shall be
liable in accordance with the
Penal Code. cda
2. For all the thefts committed by the crew, reserving his right of action
against the guilty parties.
3. For the losses, fines, and confiscations imposed an account of violation of
customs, police,
health, and navigation laws and regulations.
4. For the losses and damages caused by mutinies on board the vessel or by
reason of faults
committed by the crew in the service and defense of the same, if he does not
prove that he made timely
use of all his authority to prevent or avoid them.
5. For those caused by the misuse of the powers and the non-fulfillment of
the obligations
pertaining to him in accordance with Sections 610 and 612.
6. For those arising by reason of his going out of his course or taking a
course which he should not
have taken without sufficient cause, in the opinion of the officers of the
vessel, at a meeting with the
shippers or supercargoes who may be on board.
No exceptions whatsoever shall exempt him from this obligation.
7. For those arising by reason of his voluntarily entering a port other than
that of his destination,
outside of the cases or without the formalities referred to in Section 612.
8. For those arising by reason of non-observance of the provisions contained
in the regulations on
situation of lights and maneuvers for the purpose of preventing collisions.
SECTION 619. The captain shall be liable for the cargo from the time it is
delivered to him at the
dock or afloat alongside the at the port of loading, until he delivers it on the
shore or on the discharging
wharf at the port of unloading, unless the contrary has been expressly
agreed upon.
SECTION 620. The captain shall not be liable for the damages caused to the
vessel or to the
cargo by force majeure; but he shall always be so for those arising through
his own fault, no agreement
to the contrary being valid.
Neither shall he be personally liable for the obligations he may have
contracted for the repair,
equipment, and provisioning of the vessel, which shall devolve upon the ship
agent, unless the former
crew and passengers who may have been saved; and taking such other steps
as may assist in arriving at
the facts he shall make a statement of the result of the proceedings in the
log book and in that of the
sailing mate, and shall deliver to the captain the original record of the
proceedings, stamped and
folioed, with a memorandum of the folios, which he must rubricate, in order
that it may be presented to
the judge or court of the port of destination.
The statement of the captain shall be accepted if it is in accordance with
those of the crew and
passengers; if they disagree, the latter shall be accepted, always saying
proof to the contrary.
SECTION 625. The captain, under his personal responsibility as soon as he
arrives at the port of
destination, should get the necessary permission from the health and
customs officers, and perform the
other formalities required by the regulations of the administration, delivering
the cargo without any
defalcation, to the consignee, and in a proper case, the vessel, rigging, and
freightage to the ship agent.
If by reason of the absence of the consignee or on account of the
nonappearance of a legal holder of the
bills of lading, the captain should not know to whom he is to legally make the
delivery of the cargo, he
shall place it at the disposal of the proper judge or court or authority, in order
that he may determine
what is proper with regard to its deposit, preservation and custody.
SECTION THREE
OFFICERS AND CREW OF VESSELS
SECTION 626. In order to be a sailing mate it shall be necessary:
1. To have the qualifications required by the marine or navigation laws or
regulations.
2. Not to be disqualified in accordance therewith for the discharge of his
duties.
SECTION 627. The sailing mate, as the second chief of the vessel, and unless
the agent orders
otherwise, shall take the place of the captain in cases of absence, sickness,
or death, and shall then
assume all his powers, duties, and responsibilities.
SECTION 628. The sailing mate must provide himself with charts of the seas
in which he will
navigate with the astronomical tables and instruments for observation which
are in use and which are
necessary for the discharge of his duties, being liable for the accidents which
may arise by reason of his
5. He shall inform the captain of any average which may occur in the motor
apparatus, and shall
advise him whenever it may be necessary to stop the engines for some time,
or when any other incident
occurs in his department of which the captain should be immediately
informed, besides frequently
advising him of the consumption of fuel and lubricating material.
6. He shall keep a book or registry called the "engine book," in which shall be
entered all the date
referring to the work of the engines, such as, for example, the number of
furnaces heated, the vacuum
in the condenser, the temperature, the degree of saturation of the water in
the boilers the consumption
of fuel and lubricating material, and under the heading of "noteworthy
occurrences," the averages and
maladjustments which occur in the engines and boilers, the causes thereof
and the means employed to
repair the same likewise, the force and direction of the wind, the rigging set
and the speed of the vessel
shall be stated, taking the information from the Binnacle Book.
SECTION 633. The second mate shall take command of the vessel in case of
the inability or
disqualification of the captain and the sailing mate, assuming in such case
their powers and
responsibility.
SECTION 634. The captain may make up the crew of his vessel with such
number of men as he
may consider proper, and in the absence of Filipino sailors, he may take on
foreigners residing in the
country, the number thereof not to exceed one-fifth of the crew. If in foreign
ports the captain should
not find a sufficient number of Filipino sailors, he may complete the crew
with foreigners, with the
consent of the consul or marine authorities.
The agreement which the captain may make with the members of the crew
and others who go to make
up the complement of the vessel, to which reference is made in Section 612,
must be reduced to writing
in the account book, without the intervention of a notary public or clerk of
court ("escribano"), signed
by the parties thereto and visaed by the marine authority if they be executed
in Philippine territory or
by the consuls or consular agents of the Republic of the Philippines if
executed abroad, stating therein
all the obligations which each one contracts and all the rights he acquires
said authorities taking care
that these obligations and rights are recorded in a clear and definite manner
which give no room for
doubts or claims. cd
The captain shall take care to read to them the Sections of this Code which
concern them, stating in said
document that they were read.
If the book contains the requisites prescribed in Section 612, and there
should not appear any signs of
alterations in its entries, it shall be admitted as evidence in questions which
may arise between the
captain and the crew with respect to the agreements contained therein and
the amounts paid on account
of the same.
Every member of the crew may demand of the captain a copy, signed by the
latter, of the agreement
and of the liquidation of his wages, as they appear in the book.
SECTION 635. A seaman who has been contracted to serve on a vessel may
not rescind his
contract or fail to comply therewith except by reason of a legitimate
impediment which may have
happened to him.
Neither may he transfer from the service of one vessel to another without
obtaining the written
permission of the captain of the vessel on which he may be.
If, without obtaining said permission, the seaman who has signed for one
vessel should sign for
another one, the second contract shall be void, and the captain may choose
between forcing him to
fulfill the service to which he first bound himself, or at his expense to look for
a person to substitute
him.
Furthermore, he shall lose the wages earned on his first contract, to the
benefit of the vessel for which
he had signed.
A captain who, knowing that a seaman is in the service of another vessel,
should have made a new
agreement with him without having required of him the permission referred
to in the preceding
paragraphs, shall be subsidiarily responsible to the captain of the vessel to
which the seaman first
belonged, for that part of the indemnity, referred to in the third paragraph of
this Section, which the
seaman may not be able to pay.
SECTION 636. If there is no fixed period for which a seaman has been
contracted he may not be
discharged until the end of the return voyage to the port where he enlisted.
SECTION 637. Neither may the captain discharge a seaman during the time
of his contract
except for just cause, the following being considered as such:
1. The perpetration of a crime which disturbs order on the vessel.
2. Repeated insubordination, want of discipline, or non-fulfillment of the
service.
3. Repeated incapacity and negligence in the fulfillment of the service he
should render.
4. Habitual drunkenness.
5. Any occurrence which incapacitates the seaman to perform the work
entrusted to him, with the
exception of that provided in Section 644.
6. Desertion.
The captain may, however, before getting out on a voyage and without
giving any reason, refuse to
permit a seaman whom he may have engaged to go on board, and leave him
on land, in which case he
will be obliged to pay him his wages as if he had rendered services.
This indemnity shall be paid from the funds of the vessel if the captain
should have acted for reasons of
prudence and in the interest of the safety and good services of the farmer.
Should this not be the case, it
shall be paid by the captain personally. aisadc
After the voyage has begun, during the same, and until the conclusion
thereof, the captain may not
abandon any member of his crew on land or on sea, unless, by reason of
some crime, his imprisonment
and delivery to the competent authority in the first port touched should be
proper, a matter obligatory
for the captain.
SECTION 638. If, after the crew has been engaged, the voyage is revoked by
the will of the ship
agent or of the charterers before or after the vessel has put to sea, or if the
vessel is for the same reason
given a destination different from that fixed in the agreement with the crew,
the latter shall be
indemnified on account of the rescission of the contract, according to the
cases follows:
1. If the revocation of the voyage should be decided upon before the
departure of the vessel from
the port, each sailor engaged shall be given one month's salary, besides
what may be due him, in
accordance with his contract, for the services rendered to the vessel up to
the date of the revocation.
2. If the agreement should have been for a fixed amount for the whole
voyage, that which may be
due for said month and days shall be determined in proportion to the
approximate number of days the
voyage should have lasted, in the judgment of experts, in the manner
established in the law of Civil
Procedure; and if the proposed voyage should be of such short duration that
it is calculated at
approximately one month, the indemnity shall be fixed for fifteen days,
discounting in all cases the
sums advanced.
3. If the revocation should take place after the vessel has put to sea, the
seamen engaged for a
fixed amount for the voyage shall receive in full the salary which may have
been offered them as if the
voyage had terminated; and those engaged by the month shall receive the
amount corresponding to the
time they might have been on board and to the time they may require to
arrive at the port of destination,
the captain being obliged, furthermore, to pay the seamen in both cases, the
passage to the said port or
to the port of sailing of the vessel, as may be convenient for them.
4. If the ship agent or the charterers of the vessel should give it a destination
different from that
fixed in the agreement, and the members of the crew should not agree
thereto, they shall be given by
way of indemnity half the amount fixed in case No. 1, besides what may be
owed them for the part of
the monthly wages corresponding to the days which have elapsed from the
date of their agreements.
If they accept the change, and the voyage, on account of the greater
distance or of other reasons, should
give rise to an increase of wages, the latter shall be adjusted privately or
through amicable arbitrators in
case of disagreement. Even though the voyage should be shortened to a
nearer point, this shall not give
rise to a reduction in the wages agreed upon.
If the revocation or change of the voyage should come from the shippers or
charterers, the agent shall
have a right to demand of them the indemnity which may be justly due.
SECTION 639. If the revocation of the voyage should arise from a just cause
independent of the
will of the ship agent and charterers, and the vessel should not have left the
port, the members of the
crew shall have no other right than to collect the wages earned up to the day
on which the revocation
took place.
SECTION 640. The following shall be just causes for the revocation of the
voyage.
1. A declaration of war or interdiction of commerce with the power to whose
territory the vessel
was bound.
2. The blockade of the port of its destination, or the breaking out of an
epidemic after the
agreement.
3. The prohibition to receive in said port the goods which make up the cargo
of the vessel.
4. The detention or embargo of the same by order of the government, or for
any other reason
independent of the will of the ship agent.
5. The inability of the vessel to navigate. cdasia
SECTION 641. If, after a voyage has been begun, any of the first three causes
mentioned in the
foregoing Section should occur, the sailors shall be paid at the port which the
captain may deem
advisable to make for the benefit of the vessel and cargo, according to the
time they may have served
thereon; but if the vessel is to continue its voyage, the captain and the crew
may mutually demand the
enforcement of the contract.
In case of the occurrence of the fourth cause, the crew shall continue to be
paid half wages, if the
agreement is by month; but if the detention should exceed three months, the
contract shall be rescinded
and the crew shall be paid what they should have earned according to the
contract if the voyage had
been concluded. And if the agreement should be for a fixed sum for the
voyage, the contract must be
complied within the terms agreed upon.
In the fifth case, the crew shall have no other right than to collect the wages
earned; but if the disability
of the vessel should have been caused by the negligence or lack of skill of
the captain, engineer, or
sailing mate, they shall indemnify the crew for the damages suffered, always
without prejudice to the
criminal liability which may be proper.
SECTION 642. If the crew have been engaged on shares, they shall not be
entitled, by reason of
the revocation, delay, or greater extension of the voyage, to anything but the
proportionate part of the
indemnity which way be paid into the common funds of the vessel by the
persons liable for said
occurrences.
SECTION 643. If the vessel and her cargo should be totally lost, by reason of
capture or wreck,
all rights shall be extinguished, both as regards the crew to demand any
wages whatsoever, and as
regards the ship agent to recover the advances made.
If a portion of the vessel or of the cargo, or of both, should be saved, the
crew engaged on wages,
including the captain, shall retain their rights on the salvage, so far as they
go, on the remainder of the
vessel as well as on the amount of the freightage of the cargo saved; but
sailors who are engaged on
shares shall not have any right whatsoever on the salvage of the hull, but
only on the portion of the
freightage saved. If they should have worked to recover the remainder of the
shipwrecked vessel they
shall be given from the amount of the salvage an award in proportion of the
efforts made and to the
risks, encountered in order to accomplish the salvage.
SECTION 644. A seaman who falls sick shall not lose his right to wages during
the voyage,
unless the sickness is the result of his own fault. At any rate, the costs of the
attendance and cure shall
be defrayed from the common funds, in the form of a loan.
If the sickness should come from an injury received in the service or defense
of the vessel, the seaman
shall be attended and cured at the expense of the common funds deducting,
before anything else, from
the proceeds of the freightage the cost of the attendance and cure.
SECTION 645. If a seaman should die during the voyage, his heirs will be
given the wages
earned and not received according to his contract and the cause of his death,
namely
If he died a natural death and was engaged on wages, that which may have
been earned up to the date
of his death shall be paid.
If the contract was for a fixed sum for the whole voyage, half the amount
earned shall be paid if the
seamen died on the voyage out, and the whole amount if he died on the
return voyage.
And if the contract was on shares and death occurred after the voyage was
begun, the heirs shall be
paid the entire portion due the seaman; but if the latter died before the
departure of the vessel from the
port, the heirs shall not be entitled to claim anything.
If death occurred in the defense of the vessel, the seaman shall be
considered as living, and his heirs
shall be paid, at the end of the voyage, the full amount of wages or the
integral part of the profits which
may be due him as to others of his class.
In the same manner, the seaman captured while defending the vessel shall
be considered present so as
to enjoy the same benefits as the rest; but should he have been captured on
account of carelessness or
other accident not related to the service, he shall only receive the wages due
up to the day of his
capture.
SECTION 646. The vessel with her engines, rigging, equipment, and
freightage shall he liable for
the wages earned by the crew engaged per month or for the trip, the
liquidation and payment to take
place between one voyage and the other.
After a new voyage has been undertaken, credits of such kind pertaining to
the preceding voyage shall
lose their right of preference.
SECTION 647. The officers and the crew of the vessel shall be free from all
obligations if they
deem it proper, in the following cases:
1. If, before beginning the voyage, the captain attempts to change it, or a
naval war with the power
to which the vessel was destined occurs.
2. If a disease should break out and be officially declared an epidemic in the
port of destination.
3. If the vessel should change owner or captain.
SECTION 648. By the complement of a vessel shall be understood all the
persons on board, from
the captain to the cabin boy, necessary for the management, maneuvers,
and service, and therefore, the
complement shall include the crew, the sailing mates, engineers, stokers and
other employees on board
not having specific designations; but it shall not include the passengers or
the persons whom the vessel
is transporting.
SECTION FOUR
SUPERCARGOES
SECTION 649. Supercargoes shall discharge on board the vessel the
administrative duties which
the ship agent or the shippers may have assigned to them; they shall keep
an account and record of their
transactions in a book which shall have the same conditions and requisites
as required for the
accounting book of the captain, and they shall respect the latter in his
capacity as chief of the vessel.
cdtai
The powers and responsibilities of the captain shall cease, when there is a
supercargo, with regard to
that part of the administration legitimately conferred upon the latter, but
shall continue in force for all
acts which are inseparable from his authority and office.
SECTION 650. All the provisions contained in the second section of Title III,
Book II, with
regard to capacity, manner of making contracts, and liabilities of factors,
shall be applicable to
supercargoes.
SECTION 651. Supercargoes may not, without special authorization or
agreement, make any
transaction for their own account during the voyage, with the exception of
the ventures which, in
accordance with the custom of the port of destination, they are permitted to
do.
Neither shall they be permitted to invest in the return trip more than the
profits from the ventures,
unless there is an express authorization from the principals.
TITLE THREE
SPECIAL CONTRACTS OF MARITIME COMMERCE
SECTION ONE
CHARTER PARTIES
PART I
FORMS AND EFFECTS OF CHARTER PARTIES
SECTION 652. A charter party must be drawn in duplicate and signed by the
contracting parties,
and when either does not know how or is not able to do so, by two witnesses
at his request.
The charter party shall contain, besides the conditions freely stipulated, the
following circumstances:
1. The kind, name, and tonnage of the vessel.
2. Its flag and port of registry.
3. The name, surname, and domicile of the captain.
4. The name, surname, and domicile of the ship agent, if the latter should
make the charter party.
5. The name, surname, and domicile of the charterer; and if he states that he
is acting by
commission, that of the person for whose account he makes the contract.
6. The port of loading and unloading.
7. The capacity, number of tons or the weight or measurement which they
respectively bind
themselves to load and to transport, or whether the charter party is total.
8. The freightage to be paid, stating whether it is to be a fixed amount for
the voyage or so much
per month, or for the space to be occupied, or for the weight or measure of
the goods of which the
cargo consists, or in any other manner whatsoever agreed upon.
9. The amount of primage to be paid to the captain.
10. The days agreed upon for loading and unloading.
11. The lay days and extra lay days to be allowed and the demurrage to be
paid for each of them.
SECTION 653. If the cargo should be received without the charter party
having been signed, the
contract shall be understood as executed in accordance with what appears in
the bill of lading, the sole
evidence of title with regard to the cargo for determining the rights and
obligations of the ship agent,
of the captain, and of the charterer. cdt
SECTION 654. The charter parties executed with the intervention of a broker,
who certifies to
the authenticity of the signatures of the contracting parties because they
were signed in his presence,
shall be full evidence in court; and if they should be conflicting, that which
accords with one which the
broker must keep in his registry, if kept in accordance with law, shall govern.
The contracts shall also be admitted as evidence, even though a broker has
not taken part therein, if the
contracting parties acknowledge the signatures to be the same as their own.
If no broker has intervened in the charter party and the signatures are not
acknowledged, doubts shall
be decided by what is provided for in the bill of lading and in the absence
thereof, by the proofs
submitted by the parties.
SECTION 655. Charter parties executed by the captain in the absence of the
ship agent shall be
valid and effective, even though in executing them he should have acted in
violation of the orders and
instructions of the ship agent or shipowner; but the latter shall have a right
of action against the captain
for indemnification of damages.
SECTION 656. If in the charter party the time in which the loading and
unloading are to take
place is not stated, the usages of the port where these acts take place shall
be observed. After the
stipulated or the customary period has passed, and there is no express
proviso in the charter party fixing
the indemnity for the delay, the captain shall be entitled to demand
demurrage for the lay days and
extra lay days which may have elapsed in loading and unloading.
2. If the vessel should be lost, the captain shall pay the price realized from
said merchandise in the
sale.
The same rule shall be observed in the payment of the freightage, which
shall be in full if the vessel
arrives at her destination, and in proportion to the distance covered if she
should be lost before arrival.
SECTION 660. Merchandise jettisoned for the common safety shall not pay
freightage; but the
amount of the latter shall be considered as general average computing the
same in proportion to the
distance covered when they were jettisoned.
SECTION 661. Neither merchandise lost by reason of shipwreck or stranding
nor those seized by
the pirates or enemies, shall pay freightage.
If the freightage should have been paid in advance, it shall be returned,
unless there is an agreement to
the contrary.
SECTION 662. If the vessel or the merchandise should be redeemed, or the
effects of the
shipwreck be salvaged, the freightage corresponding to the distance covered
by the vessel transporting
the cargo shall be paid; and should the vessel, after being repaired, transport
said merchandise to the
port of destination, the full freightage shall be paid, without prejudice to what
may be due by reason of
the average.
SECTION 663. Merchandise which suffer deterioration or diminutions on
account of inherent
defects or bad quality and condition of the packing, or because of fortuitous
event, shall pay freightage
in full and as stipulated in the charter party.
SECTION 664. The natural increase in weight or size of the merchandise
loaded on the vessel
shall accrue to the benefit of the owner, and shall pay the proper freightage
fixed in the contract for the
same.
SECTION 665. The cargo shall be specially liable for the payment of the
freightage, expenses
and duties arising therefrom, which must be reimbursed by the shippers, as
well as for the part of the
general average which may correspond to it; but it shall not be legal for the
captain to delay unloading
on account of suspicion that this obligation may not be complied with.
Should there be reasons for distrust, the judge or court, at the instance of
the captain, may order the
SECTION 672. If the vessel has been chartered in whole, the captain may not,
without the
consent of the charterer, accept cargo from any other person; and should he
do so, said charterer may
oblige him to unload it and to indemnify him for the losses suffered thereby.
SECTION 673. The person from whom the vessel is chartered shall he liable
for all the losses
caused to the charterer by reason of the voluntary delay of the captain in
putting to sea, according to the
rules prescribed, provided he has been requested, notarially or judicially, to
put to sea at the proper
time.
SECTION 674. If the charterer should carry to the vessel more cargo than
that contracted for, the
excess may be admitted in accordance with the price stipulated in the
contract, if it can be well stowed
without injuring the other shippers; but if in order to load it, the vessel would
be thrown out of trim, the
captain must refuse it or unload it at the expense of its owner.
In the same manner, the captain may, before leaving the port, unload
merchandise clandestinely placed
on board, or transport them, if he can do so with the vessel in trim,
demanding by way of freightage the
highest price which may have been stipulated for said voyage.
SECTION 675. If the vessel has been chartered to receive the cargo in
another port, the captain
shall appear before the consignee designated in the charter party; and,
should the latter not deliver the
cargo to him, he shall inform the charterer and wait his instructions, the lay
days agreed upon or those
allowed by custom in the port beginning to run in the meantime, unless there
is an express, agreement
to the contrary.
Should the captain not receive an answer within the time necessary therefor,
he shall make efforts to
find freight; and should he not find any after the lay days and extra lay days
have elapsed, he shall
make a protest and return to the port where the charter was made.
The charterer shall pay the freightage in full, discounting that which may
have been earned on the
merchandise which may have been carried on the voyage out or on the
return trip, if carried for the
account of third persons.
The same shall be done if a vessel, having been chartered for the round trip,
should not be given any
cargo on its return.
SECTION 676. The captain shall lose the freightage and shall indemnify the
charterers if the
latter should prove, even against the certificate of inspection, if one has
been made at the port of
departure, that the vessel was not in a condition to navigate at the time of
receiving the cargo.
SECTION 677. The charter party shall subsist if a declaration of war or a
blockade should take
place during the voyage, the captain not having any instructions from the
charterer. In such case the
captain must proceed to the nearest safe and neutral port, requesting and
awaiting orders from the
shipper, and the expenses and salaries paid during the detention shall be
paid as general average.
If, by orders of the shipper, the cargo should be discharged at the port of
arrival, the freightage for the
voyage out shall be paid in full.
SECTION 678. If the time necessary, in the opinion of the judge or court, to
receive the orders of
the shipper should have elapse, without the captain having received any
instructions, the cargo shall be
deposited, and it shall be liable for the payment of the freightage and
expenses on its account during the
delay, which shall be paid from the proceeds of the part first sold.
PART 3
OBLIGATIONS OF CHARTERERS
SECTION 679. The charterer of an entire vessel may sub-charter the whole or
part thereof on
such terms as he may consider most convenient, the captain not being
allowed to refuse to receive on
board the freight delivered by the second charterers, provided that the
conditions of the first charter are
not change, and that the price agreed upon is paid in full to the person from
whom the vessel is
chartered, even though the full cargo is not embarked, with the limitation
established in the next Section.
cdtai
SECTION 680. A charterer who does not complete the full cargo he bound
himself to ship shall
pay the freightage of the amount he fails to ship, if the captain does not take
other freight to complete
the load of the vessel, in which case the first charterer shall pay the
difference, should there be any.
SECTION 681. If the charterer should load goods different from those stated
at the time of
executing the charter party, without the knowledge of the person from whom
the vessel was chartered
or of the captain, and should thereby give rise to losses, by reason of
confiscation, embargo, detention,
or other causes, to the person from whom the vessel was chartered or to the
shippers, the person giving
rise thereto shall be liable with the value of his shipment and furthermore
with his property, for the full
indemnity to all those injured through his fault.
SECTION 682. If the merchandise should have been shipped for the purpose
of illicit commerce,
and were taken on board with the knowledge of the person from whom the
vessel was chartered or of
the captain, the latter, jointly with the owner of the same, shall be liable for
all the losses which may be
caused the other shippers; and even though it may have been stipulated,
they can not demand any
indemnity whatsoever from the charterer for the damaged caused to the
vessel.
SECTION 683. In case of making a port to repair the hull, machinery, or
equipment of the vessel,
the shippers must await until the vessel is repaired, being permitted to
unload it at their own expense
should they deem it proper.
If, for the benefit of the cargo subject to deterioration, the shippers or the
court, or the consul, or the
competent authority in a foreign country, should order the merchandise to be
unloaded, the expenses of
unloading and reloading shall be for the account of the former.
SECTION 684. If the charterer, without the occurrence of any of the cases of
force majeure
mentioned in the foregoing Section, should wish to unload his merchandise
before arriving at the port of
destination, he shall pay the full freightage, the expenses of the arrival made
at his request, and the
losses and damages caused the other shippers, should there be any.
SECTION 685. In charters for transportation of general freight, any of the
shippers may unload
the merchandise before the beginning of the voyage, paying one-half of the
freightage, the expense of
stowing and restowing the cargo, and any other damage which for his reason
he may cause the other
shippers.
SECTION 686. After the vessel has been unloaded and the cargo placed at
the disposal of the
consignee, the latter must immediately pay the captain the freightage due
and the other expenses for
which said cargo may be liable.
The primage must be paid in the same proportion and at the same time as
the freightage, all the changes
and modifications to which the latter should be subject also governing the
former.
SECTION 687. The charterers and shippers may not abandon merchandise
damaged on account
of inherent defect or fortuitous event, for the payment of the freightage and
other expenses. aisadc
The abandonment shall be proper, however, if the cargo should consist of
liquids and they have leaked
out, nothing remaining in the containers but one-fourth part of their
contents.
PART 4
TOTAL OR PARTIAL RESCISSION OF CHARTER PARTIES
SECTION 688. A charter party may be rescinded at the request of the
charterer:
1. If before loading the vessel he should not agree with that stated in the
certificate of tonnage, or
if there should be an error in the statement of the flag under which she sails.
2. If the vessel should not be placed at the disposal of the charterer within
the period and in the
manner agreed upon.
3. If after the vessel has put to sea, she should return to the port of
departure, on account of risk
from pirates, enemies, or bad weather, and the shippers should agree to
unload her.
In the second and third cases the person from whom the vessel was
chartered shall indemnify the
charterer for the voyage out.
4. If the charter should have been made by the months, the charterers shall
pay the full freightage
for one month, if the voyage is for a port in the same waters, and for two
months, if for a port in
different waters.
From one port to another of the Philippines and adjacent islands, the
freightage for one month only
shall be paid.
5. If the vessel should make a port during the voyage in order to make
urgent repairs, and the
charterers should prefer to dispose of the merchandise.
When the delay does not exceed thirty days, the shippers shall pay the full
freightage for the voyage
out.
Should the delay exceed thirty days, they shall only pay the freightage in
proportion to the distance
covered by the vessel.
SECTION 689. At the request of the person from whom the vessel is
chartered the charter party
may be rescinded:
1. If the charterer, at the termination of the extra lay days, does not place
the cargo alongside the
vessel.
In such case the charterer must pay half the freight stipulated, besides the
demurrage due for the lay
days and extra lay days.
2. If the person from whom the vessel was chartered should sell it before the
charterer has begun
to load it, and the purchaser should load it for his own account.
In such case the vendor shall indemnify the charterer for the losses he may
suffer.
If the new owner of the vessel should not load it for his own account, the
charter party shall be
respected, and the vendor shall indemnify the purchaser if the former did not
inform him of the charter
pending at the time of making the sale.
SECTION 690. The charter party shall be rescinded and all actions arising
therefrom shall be
extinguished, if, before the vessel puts to sea from the port of departure, any
of the following cases
should occur:
1. A declaration of war or interdiction of commerce with the power to whose
ports the vessel was
to make its voyage.
2. A condition of blockade of the port of destination of said vessel, or the
breaking out of an
epidemic after the contract was executed.
3. The prohibition to receive at the said port the merchandise constituting
the cargo of the vessel.
4. An indefinite detention, by reason of an embargo of the vessel by order of
the government, or
for any other reason independent of the will of the ship agent.
5. The inability of the vessel to navigate, without fault of the captain or ship
agent.
The unloading shall be made for the account of the charterer.
SECTION 691. If the vessel cannot put to sea on account of the closing of the
port of departure
or any other temporary cause, the charter shall remain in force, with neither
one of the contracting
parties having a right to claim damages.
SECTION 707. Four true copies of the original bill of lading shall be made, and
all of them shall
be signed by the captain and the shipper. Of these, the shipper shall keep
one and send another to the
consignee; the captain shall take two, one for himself and another for the
ship agent.
There may also be drawn up as many copies of the bill of lading as may be
considered necessary by the
person interested; but when they are issued to order or to bearer, they shall
be stated in all the copies,
be they the first four or the subsequent ones, the destination of each one,
stating whether it is for the
agent, for the captain, for the shipper, or for the consignee. If the copy sent
to the latter should have a
duplicate, this circumstance and the fact that it is not valid except in default
of the first one must be
stated therein.
SECTION 708. Bills of lading issued to bearer and sent to the consignee shall
be transferable by
actual delivery of the instrument; and those issued to order, by virtue of an
indorsement.
In either case, the person to whom the bill of lading is transferred shall
acquire all the rights and actions
of the transferor or indorser with regard to the merchandise mentioned in the
same.
SECTION 709. A bill of lading drawn up in accordance with the provisions of
this title shall be
proof as between all those interested in the cargo and between the latter
and the insurers, proof to the
contrary being reserved for the latter.
SECTION 710. If the bills of lading do not agree, and no change or erasure
can be observed in
any of them, those possessed by the shipper or consignee signed by the
captain shall be proof against
the captain or ship agent in favor of the consignee or shipper; and those
possessed by the captain or
ship agent signed by the shipper shall be proof against the shipper or
consignee in favor of the captain
or ship agent.
SECTION 711. The legitimate holder of a bill of lading who fails to present it
to the captain of
the vessel before the unloading obliging the latter thereby to unload it and
place it in deposit, shall be
responsible for the expenses of warehousing and other expenses arising
therefrom.
SECTION 712. The captain may not by himself change the destination of the
merchandise. In
admitting this change at the instance of the shipper, he must first take up
the bill of lading which he
may have issued, under pain of being liable for the cargo to the legitimate
holder of the same.
SECTION 713. If before the delivery of the cargo a new bill of lading should
be demanded of the
captain, on the allegation that the failure to present the previous ones is due
to their loss or to any other
just cause, he shall be obliged to issue it, provided that security for the value
of the cargo is given to his
satisfaction, but without changing the consignment, and stating therein the
circumstances prescribed in
the last paragraph of Section 707, under penalty, should he not so state, of
being held liable for said
cargo if improperly delivered through his fault.
SECTION 714. If before the vessel puts to sea the captain should die or
should cease to hold his
position through any cause, the shippers shall have the right to demand of
the new captain the
ratification of the first bills of lading, and the latter must do so, provided that
all the copies previously
issued be presented or returned to him, and it should appear from all
examination of the cargo that they
are correct.
The expenses arising from the examination of the cargo shall be defrayed by
the ship agent, without
prejudice to the right of action of the latter against the first captain if he
ceased to be such through his
own fault. Should said examination not be made, it shall be understood that
the new captain accepts the
cargo as it appears from the bills of lading issued.
SECTION 715. Bills of lading will give rise to a most summary action or to
judicial, compulsion
("accion sumarisima o de apremios"), according to the case, for the delivery
of the cargo and the
payment of the freightage and the expenses thereby incurred.
SECTION 716. If several persons should present bills of lading issued to
bearer or to order,
indorsed in their favor, demanding the same merchandise, the captain shall
prefer, in making delivery
the person who presents the copy first issued, except when the latter one
was issued on proof of the loss
of the first, and both are presented by different persons.
In such case, as well as when only second subsequent copies, issued without
this proof, are presented,
the captain shall apply to the judge or court, so that he may order the
deposit of the merchandise and
their delivery, through him, to the proper person.
SECTION 717. The delivery of the bill of lading shall effect the cancellation of
all the
provisional receipts of prior date given by the captain or his subordinates for
partial deliveries of the
cargo which may have been made.
SECTION 718. After the cargo has been delivered the bill of lading which the
captain signed, or
at least the copy by reason of which the delivery is made, shall be returned
to him, with the receipt for
the merchandise mentioned therein.
The delay on the part of the consignee shall make him liable for the damages
which such delay may
cause the captain.
SECTION TWO
LOANS ON BOTTOMRY AND RESPONDENTIA
SECTION 719. A loan in which under any condition whatever, the repayment
of the sum loaned
and of the premium stipulated depends upon the safe arrival in port of the
goods on which it is made, or
of the price they may receive in case of accident, shall be considered a loan
on bottomry or
respondentia.
SECTION 720. Loans on bottomry or respondentia may be executed:
1. By means of a public instrument.
2. By means of a policy signed by the contracting parties and the broker
taking part therein. cdt
3. By means of a private instrument.
Under whichever of these forms the contract is executed, it shall be entered
in the certificate of the
registry of the vessel and shall be recorded in the registry of vessels, without
which requisites the
credits of this kind shall not have, with regard to other credits, the preference
which, according to their
nature, they should have, although the obligation shall be valid between the
contracting parties.
The contracts made during a voyage shall be governed by the provisions of
Sections 583 and 611, and
shall be effective with regard to third persons from the date of their
execution, if they should be
recorded in the registry of vessels of the port of registry of the vessel before
the lapse of eight days
following its arrival. If said eight days should elapse without the record
having been made in the
corresponding registry, the contracts made during the voyage of a vessel
shall produce no effect with
regard to third persons, except from the day and date of their inscription.
In order that the policy of the contracts executed in accordance with No. 2
may have binding force,
they must conform to the registry of the broker who took part therein. With
respect to those executed in
accordance with No. 3 the acknowledgment of the signature shall be
required.
Contracts which are not reduced to writing shall not give rise to judicial
action.
SECTION 721. In a contract on bottomry or respondentia the following must
be stated:
1. The kind, name, and registry of the vessel.
2. The name, surname, and domicile of the captain.
3. The names, surnames, and domiciles of the person giving and the person
receiving the loan.
4. The amount of the loan and the premium stipulated.
5. The time for repayment.
6. The goods pledged to secure repayment.
7. The voyage during which the risk is run.
SECTION 722. The contract may be made to order, in which case they shall
be transferable by
indorsement, and the indorsee shall acquire all the rights and shall incur all
the risks corresponding to
the indorser.
SECTION 723. Loans may be made in goods and in merchandise, fixing their
value in order to
determine the principal of the loan.
SECTION 724. The loans may be constituted jointly or separately:
1. On the hull of the vessel.
2. On the rigging.
3. On the equipment, provisions, and fuel.
4. On the engine, if the vessel is a steamer.
5. On the merchandise loaded.
If the loan in constituted on the hull of the vessel, the rigging, equipment and
other goods, provisions,
fuel, steam engines, and the freightage earned during the voyage on which
the loan is made shall also
be considered as included in the liability for the loan. cdtai
If the loan is made on the cargo, all that which constitutes the same shall be
subject to the repayment;
and if on a particular object of the vessel or of the cargo, only the object
concretely and specifically
and marine insurance, the value of what may be saved in case of shipwreck
shall be divided between
the lender and the insurer, in proportion to the legitimate interest of each
one, taking into consideration,
for this purpose only, the principal with respect to the loan, and without
prejudice to the right of
preference of other creditors in accordance with Section 580.
SECTION 736. If there should be delay in repayment of the principal and
premiums of the loan,
only the former shall bear of legal interest.