REVIEWER ADMIRALTY

1. Define Admiralty or Maritime Law

Ans: The law of the sea or body of law applied to maritime cases

It is corpus of rules, concepts and legal practices governing centrally

important concerns of the business and carrying goods and passengers
by water.

2. What is the distinguishing characteristic of Maritime Law?

Ans: Mercantile law is generally characterized by its limited liability or so
called real and hypothecary nature of maritime law. It means the liability
of the agent or shipowner in connection with maritime contracts is
confined or limited to the res

3. Define maritime lien

Ans: it is a privilege claim or charge upon a ship which claim or lien travels
with that ship secretively and unconditionally and may be enforced by
an action in rem.

4. What court has jurisdiction over admiralty and maritime cases?

Ans: Regional Trial Court has original cognizance in all action in admiralty
and maritime jurisdiction where the demand or claim exceeds P
300,000, and P 400, 000 in Metro Manila.

Admiralty involves jurisdiction over all maritime contracts in whatever

form, whenever executed or performed, but not over non-maritime
contracts.

5. What is a contract of affreightment?

Ans: Is a suit of one party against the other for loss or damage cargo.

6. Define the following:

a. Libel;
b. Libellant; and
c. Libellee.

Ans: a. Libel: means the complaint or pleading in a suit, corresponding to

the complaint in an ordinary action

b. Libellant: is the complainant

c. Libellee: is the defendant in an admiralty suit.

Note: WE DO NOT APPLY THESE TERMS IN OUR COURTS

7. What is Flag of Convenience?

Ans: A non-national may bear the flags of another country.

8. What are the attractions of flags convenience (FOCs) to Shipowners?

Ans: a. Operating Flexibility
 b. Ability to Choose Optimum Manning Service
c. Financing Requirement
d. Tax argument- most open registry no income taxes are levied on the
company
e. the corporate aspect- concealing the identity of the beneficial owner
of the vessel

9. Define Crews of Convenience

Ans: Seamen who are not nationals of the country of the flag of the vessel
and are employed on inferior rates and conditions than those applying to the
seamen of the country of the flag of the owner or the vessel

10. What is an (International Transport Federation) ITF

Ans: issued after an FOC registered ships are required to sign these special
arguments, thereby undertaking to pay the appropriate minimum wage to
comply with specific conditions of services and social benefits for their
crew.

11.What is the objective of Ship Mortgage Decree of 1975?

Ans: To accelerate the growth and development of the domestic shipping
industry and realizing the heavy capital requirement for ship
acquisition and operation and the inadequacy of existing laws on ship
mortgage, this presidential decree was promulgated to encourage
financial institutions, both local and foreign, to invest in the Philippines
domestic shipping, by extending the benefits accorded o overseas
shipping under PD 214.

12.What are requisites of Ship Mortgage?

Ans: a. citizen of the Philippines or association or corporation (60% owned
by Filipino) organized under the Philippine law; and
b. granted for the purposes of construction, acquisition, purchase or
initial operation of a vessel

Note: the vessel to be mortgaged may be the same vessel financed to be

constructed, purchased or acquired or it may be another vessel
pertaining to the mortgagor

13.When will a ship mortgage be given a preferred status?

Ans: a ship mortgage gets its validity and preferred status only if it is
recorded by stating the mortgagors interest in the vessel and the value of
the interest.

It must be recorded at the MARINA (Maritime Industry Authority)

Central Office or Maritime Regional Office

14.What is a common carrier?

Ans: Article 1732 of the Civil Code defines a common carrier as "(a)
person, corporation or firm, or association engaged in the business of
carrying or transporting passengers or goods or both, by land, water or
air, for compensation, offering their services to the public."
15. What diligence is required to be observed by a common carrier?
Ans: extraordinary diligence

16.Is a common carrier liable for loss, destruction or deterioration of the goods?
Ans: Yes. The common carrier is liable for the loss, destruction or
deterioration of the goods.

Except: a. Flood, storm, earthquake, lighting or other natural

disaster or calamity;
b. Act of the public enemy in war, whether international or civil;
c. act or omission of the shipper or owner of the goods;
d. the character of the goods or defects in the packing or in the
containers;
e. order or act of competent public authority

17.Define due diligence

Ans: it may be defined as not merely a praiseworthy or sincere, though
unsuccessful effort, but such an intelligent and efficient attempt as shall
make it so (seaworthy) as far as diligence can serve. (Grain Growers Expert
Co., 43 OLR 330)

18.What is a private carrier?

Ans: they do not commit themselves to serve all indiscriminately but only
informs the public that it may enter into a contract with any person who
would want to have his goods transported and may upon such contract be
bound to carry.

19.Define Vessel or Watercraft

Ans: refers to any barge, lighter, bulk carrier, passenger ship, freighter,
tanker, container ship, fishing boats, or other artificial contrivance utilizing
any source of motive power, designed, used or capable of being used as a
means of transportation operating either as a common, r private carrier,
including fishing vessels covered under PD 43

Note: in maritime laws, it refers exclusively to those which are engaged in the
transportation of passengers and freight from port to another or from one
place to another.

20. What are the vessels which are not subject to maritime law?
Ans: Pleasure craft, yachts, pontoons, health service and harbour police
vessels, coasting store-houses, warships or patrol vessels, coast guard
vessels, fishing vessels, tow boats, other craft destined to other uses (e.g.
scientific research and exploration), craft engaged in the loading and
discharge of vessels

21.What law covers maritime commerce?

 Ans: Vessels engaged in maritime commerce are covered by the Code of
Commerce.

Note: Not engaged on such is governed by the Civil Code

22. What government agency has the authority on registration of Philippine

vessels?
Ans: MARINA (Maritime Industry Authority) is vested with exclusive authority
over the registration and documentation of Philippine vessels; the
issuance of all certificates, licenses and other documents necessary r
incident to such registration and documentation, and the approval of
any contracts or transactions which directly or indirectly affect the title
of registered vessels such as sale, mortgages, and charter.

Note: All vessels of domestic ownership and more than 15 tons gross; vessels
engaged in towing pushing and carrying goods or passengers for hire; and
vessels acquired under PD 760/ 166/ 1711 shall be registered under MARINA

23.What is a Certificate of Philippine Registry?

Ans: is evidence of registration of a vessel of domestic ownership, among
others, of more than 15 tons gross

24.What is a Provisional Certificate of Philippine Registry?

Ans: refers to a document issued by Philippine consulate office to a vessel
overseas

25. Define certificate of ownership

Ans: it refers to a certificate issued by the MARINA as evidence of
permanent registration of vessels (more than 5 tons)

26.What is the purpose for licensing Yachts exclusively for pleasure? Who shall
issue such?
Ans: For identification of yachts and their owners. MARINA shall Issue the
license

27. What are the Modes of acquisition of vessels?

Ans: a. purchase on cash payment basis or on deferred payment terms and
subject to mortgage;
b. foreclosure of mortgage, whether judicial or extrajudicial;
c. donation or by inheritance whether by testate or intestate
succession; and
d. prescription, construction, capture, or barter

28. What are the requirements in acquiring ownership of a vessel?

Ans: a. it must appear in a written instrument; and
b. recorded the Register of Philippine Vessels (to bind third parties)

29.Distinguish ordinary from extraordinary acquisitive prescription in acquiring

ownership of a vessel
 Ans: a. Ordinary (in good faith, with good title duly recorded, public,
peaceful, uninterrupted possession for three years)

b. Extraordinary (the possession has to be in concept of an owner; and

public, peaceful, and uninterrupted for 10 years)

30.Can the captain acquire ownership by prescription? Reason.

Ans: A captain cannot acquire prescription he commands. The nature of the
possession of the captain is not in the concept of the owner nor adverse
to the owner of the vessel. The captain is only an agent of the owner

31. Distinguish Pre-emption and redemption of co-owners

Ans:
Redemption Pre-emption
a. After sale Before the execution of sale
b. Dissolves a perfected and Prevents sale to third parties
consummated sale
c. Against purchaser/ buyer Against the seller

32.What are preferred claims with respect to preferred mortgages?

a. Expenses and fees allowed and cost taxed by the court and taxes due to
the Government;
b. Crews wages;
c. General average;
d. Salvage, including contract salvage;
e. Maritime liens arising prior in time to the recording of the preferred
mortgage;
f. Damages arising out or tort; and preferred mortgage registered prior in
time.

33. Is the master or captain of ship may collect the salaries of the crew
members?
Ans: The master or captain of a ship may not be allowed to file a collection
suit for the amount due the other members of the crew because he is not
the real party in the interest, unless the crew have assigned him what is
due them. (the real party in interest are the crew themselves)

34.What is the effect of registration of Voluntary sale on Pre-existing claims?

 Ans: A voluntary sale, unlike a judicial sale or extrajudicial foreclosure, does
not terminate pre-existing claims on the vessel. The new owner acquires
the vessel subject to all claims.

35. What is the effect of registration of a Judicial sale?

Ans: if the sale is judicial, the registration of the sale will extinguish all other
liabilities of the vessel. However, rights of the prior lien holders, who were
not parties to the proceeding under which such sale took place, were
foreclosed.

It will be converted into ordinary credits enforceable by personal

action against the debtor.

36.When is charter terminated?

Ans: a. expiration of the charter period
b. pre-termination by mutual agreement of the parties for whatever
reason
c. cancellation of the charter through default by either of the parties

37.Is a Philippine Flag is a Flag of Convenience

Ans: No. Only Philippine nationals who have offices in the Philippines are
allowed to charter foreign-owned vessels and register them under our flag.
38. Define a Bill of Lading
Ans: it is a written acknowledgment, signed by the master of a vessel, that
he has received the goods therein described, from the shipper, to be
transported on terms therein expressed, to the described place of
destination, and there to be delivered to the consignee or parties therein
designated.

39.What is a charter party?

Ans: it is a contract between the charterer and the shipowner, in which the
former hires from the later the use of the ship, either by certain length of
time, or for a certain voyage.

40.Distinguish Time charter from round voyage or voyage charter

Ans: a. time charter- it occurs when a vessel is leased for a specific period of
time
b. round voyage or voyage charter- when the owner undertakes to
provide for the carriage of specified goods on one or several voyages
between named ports.

41.Distinguish Demise form bareboat charter

Ans: Demise Charter- the charterer mans and equips the vessel and
assumes all responsibility for its navigation, management and
operation. He thus acts as owner of the vessel in all
important respect for the duration of the charter.

Bareboat charter- applied to a demise charter which provides that the

shipowner is to furnish a master or crew to man the vessel under the
charterers direction. In such a case the master and crew become the
 agents and servants of the charterer, and the latter although the agent
of the master has possession and control of the vessel during the charter
period.

42.What are the functions of a Bill of Lading?

Ans: a. it provides evidence of the contract of affreightment between the
shipper and the shipowner
b. The bill of lading is also the document upon which the shipowner
acknowledges receipt of the cargo by the shipowner.
c. the bills are documents of title. Possession of the bills gives the right
to call delivery of the goods at the port of destination.

43.Define Bottomry
Ans: It is a contract in the nature of a mortgage of a ship, on which the
owner borrows money to enable him to fit out the ship, or to purchase
cargo for a voyage proposed; and he pledges the keel or bottom of the
ship, pars pro-toto (a part for the whole) as security for payment.

44. What is Respondentia?

Ans: one made on the goods laden on board, the ship, and which are to be
sold or exchanged in the course of the voyage, the borrowers personal
responsibility being deemed the principal security for the performance
of the contract.