CHAPTER 1

GENERAL CONCEPTS
I. DEFINITION AND CONCEPT
A. CONTRACT OF TRANSPORTATION
There is a contract of transportation where a person obligates himself to
transport persons or property from one place to another for a
consideration.
It may involve:
1.
carriage of passengers
2.
carriage of goods
COMMON CARRIER or PRIVATE CARRIER person who obligates
himself to transport the goods or passengers
B. PARTIES
a. Carriage of Passengers
1.
Common Carrier
2.
Passenger
Common Carrier - person who obligates himself to transport the
passengers
Passenger one who travels in a public conveyance by virtue of contract,
express or implied, with the carrier as to the payment of fare or that
which is accepted as an equivalent thereof.
NOTE: A passenger is still considered as such even if he is being carried
gratuitously or under a reduced fare
Art. 1758. When a passenger is carried gratuitously, a stipulation
limiting the common carrier's liability for negligence is valid, but not
for wilful acts or gross negligence.
The reduction of fare does not justify any limitation of the common
carrier's liability.
BALIWAG TRANSIT CORPORATION V. CA
b. Carriage of Goods.
1.
Shipper
2.
Carrier
Shipper person who delivers the goods to the carrier for transportation;
person who pays the consideration or on whose behalf payment is made
Consignee the person to whom the goods are to be delivered
The consignee maybe the shipper himself where goods will be
delivered to one of the branches of the shipper. He may also be a third
person who is not actually a party to the contract.

The consignee may be deemed to be bound by the terms and

conditions of the bill of lading where it was established that he
accepted the same and is trying to enforce the agreement.

C. PERFECTION

not until the facilities of the carrier are actually used can carrier
be said to have already assumed obligation of carrier

Contract to carry goods

consensual

carriage agrees to accept and transport goods at some future

date
Contract of carriage of goods

perfected when goods are unconditionally placed in the

possession and control of the carrier, and upon the receipt by
the carrier for transportation
a. AIRCRAFT
Contract to carry passengers

perfected even if no tickets have been issued to passengers so

long as there was already a meeting of minds w/ respect to the
subject matter and the consideration
Contract of carriage

perfected when passenger had checked in at the departure

counter, passed through customs and immigration, boarded
the shuttle bus and proceeded to the ramp of the aircraft

his baggage had already been loaded in the aircraft to be flown

with the passenger to his destination
b. BUSES, JEEPNEYS, AND STREET CARS

once a public utility bus (or jeepney) stops, it is in effect

making a continuous offer to bus riders

it is the duty of drivers to stop their conveyances for a

reasonable length of time in order to afford passengers an
opportunity to board and enter

they are liable for injuries suffered by boarding passengers

resulting from the sudden starting up of the carrier

liability of carrier is based on contract

passenger is deemed to be accepting the offer if he is already

attempting to board the conveyances and the contract of
carriage is perfected from that point
c. TRAINS

a person who wants to board a train in a railway station must

purchase a ticket and must present himself at the proper place
and in a proper manner to be transported

such person must have a bona fide intention to use the facilities
of the carrier, possess sufficient fare with which to pay for his
pay for his passage, and present himself to the carrier for
transportation in the place and manner provided

if he does not do so, he is not considered a passenger

PROBLEM: X brought 7 sacks of palay to PNR. He paid its freight
charges was issued a way bill. Cargo was loaded on freight wagon of
train. Without permission, X boarded freight wagon and not the
passenger coach. Train was derailed. Freight wagon fell on its side, X
died. No evidence of X's ticket or payment of fare. Is X a passenger?
A: No. X who was a stowaway was a mere trespasser. Hencce, carrier
assumes no duty of care in favor of X.
BRITISH AIRWAYS INC. V. CA

Contract to carry

an agreement to carry the passenger at some future date

consensual

perfected by mere consent

Contract of carriage or common carriage

real contract

II. CARRIER
Art. 1732. Common carriers are persons, corporations, firms or

Notes in Transportation Laws | MA. ANGELA B. BONIFACIO 1

associations 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.

Considered a common carrier:

- also defined as: one that holds itself out as ready to engage in the
transportation of goods for hire as a public employment and not as a
casual occupation

1. A customs broker and warehouseman. Although she does not

indiscriminately hold her services out to the public but offers the same to
select parties with whom she may contract in the conduct of her business.
She entered into a contract to transfer paper and kraft board from Port
Area to a warehouse.

A. TESTS for determining whether a party is a common carrier of goods:

1. He must be engaged in the business of carrying goods for others as a
public employment, and must hold himself out as ready to engage in the
transportation of goods for person generally as a business and not as a
casual occupation.
2. He must undertake to carry goods of the kind to which his business is
confined.
3. He must undertake to carry by the method by which his business is
conducted and over his established roads.
4. The transportation must be for hire.
* The true test of a common carrier is the carrage of goods or passengers,
provided it has space for all who opt to avail themselves of its
transportation for a fee.
B. CHARACTERISTICS
1. Art 1732 makes no distinction between one whose principal business
activity is the carrying of persons or goods or both, and one who does
such carrying only as an ancillary activity (sideline)
2. Art 1732 avoids distinction between a person or enterprise offering
transportation service on a regular or scheduled basis and one offering
such service on an occasional, episodic or unscheduled basis
3. Art 1732 does not distinguish between a carrier offering its services to
the general public [general community or population] and one who
offers services or solicits business only from a narrow segment of the
general population
4. A person or entity is a common carrier and has the obligations of one
under the Civil Code even if he did not secure a Certificate of Public
Convenience

2. Even if with limited clientele and entered into individual contracts

3. Whether its business of carrying of goods is done on an irregular basis
rather than scheduled manner and with a limited clientele. A common
carrier need not have a fixed and publicly known route nor does it have
to maintain terminals or issue tickets.
c. Means of Transportation.
Pipeline operators are common carriers that are subject to business taxes
on common carriers. Such operators are common carriers even if the oil
or petroleum products are being transported not through motor vehicles
but through pipelines.
C. EFFECT OF CHARTER PARTY.
Charter party may transform a common carrier into a private carrier. It
must be a bareboat or demise charter. It is a contract by which an entire
ship, or some principal part thereof, is let by the owner to another person
for a specified time or use.
Bareboat or demise charter where the charterer mans the vessel with
his own people and becomes, in effect, the owner for the voyage or
service stipulated.
Voyage charter or time charter or contract of affreightment - common
carrier is not transformed into a private carrier if charter party is a
voyage/time charter. It is by which the owner of a ship or other person
for the conveyance of goods, on a particular voyage, in consideration of
the payment of freight
Charter parties are of 2 types
1. CONTRACT OF AFFREIGHTMENT involve the use of shipping
space on vessels leased by the owner in part or as a whole, to carry goods
for others

5. Civil Code makes no distinction as to the means of transporting, as

long as it is by land, water or air

TIME CHARTER vessel is leased to the charterer for a fixed

period of time

6. Civil Code does not provide that transportation should be by motor

vehicle

VOYAGE CHARTER wherein the ship is leased for a single

voyage

7. A person or entity may be a common carrier even if he has no fixed

and publicly known route, maintains no terminals, and issues no tickets

In both cases, charter-party provides for hire of the vessel only,

either for a determinate period of time or for a single or
consecutive voyage, the shipowner to supply the ship's stores,
pay for the wages of the master and the crew and defray the
expenses for the maintenance of the ship

8. A person or entity need not be engaged in the business of public

transportation for the provisions of the Civil Code on common carriers to
apply to them
a. Ancillary Business.
Considered a common carrier: One whose principal business was a junk
dealer; who utilized 2 six-wheeler trucks for hauling the material to
Manila. On the return trip to Pangasinan, he would load his vehicles with
cargo w/c various merchants wanted delivered to establishments. For
that service, he charged freight rates commonly lower than regular
commercial rates. Such business is ancillary.
b. Limited Clientele.

2. CHARTER BY DEMISE OR BAREBOAT CHARTER by the terms

of which the whole vessel is let to the charterer with a transfer to him of
its entire command and possession and consequent control over its
navigation, including the master and the crew
COMMON OR PUBLIC
CARRIER

PRIVATE CARRIER

Art. 1732 definition extends to

carriers either by land, air or

If the undertaking is a single

transaction, not a part of the

Notes in Transportation Laws | MA. ANGELA B. BONIFACIO 2

water which hold themselves out

s ready to engage in carrying
goods or transporting passengers
or both for compensation as a
public employment and not as a
casual occupation

general business or occupation,

although involving the carriage
of goods for a fee, the person or
corporation offering such service
is a private carrier

NOTE: It is imperative that a public carrier shall remain as such,

notwithstanding the charter of the whole or portion of a vessel by one or
more persons, provided the charter is limited to the ship only, as in a
TIME CHARTER or VOYAGE CHARTER.
It is only when the charter includes both the vessel and its crew, as in a
BAREBOAT or DEMISE that a common carrier becomes private.
A shipowner in a TIME or VOYAGE CHARTER retains possession and
control of the ship, although her holds may, for the moment, be the
property of the charterer.
PROBLEM: Q: AM Trucking, a small company, operates 2 trucks for hire
on selective basis. It caters to only a few customer, and its trucks do not
make regular or scheduled trips. No certificate of public convenience.
A: Carrier is liable. Civil code makes no distinction between one whose
principal business activity is the carrying of persons or goods or both and
one who does such carrying only as an ancillary activity. It does not
make any distinction between a person or enterprise offering
transportation service on a regular or scheduled basis and one offering
such service on an occasional, episodic or unscheduled basis. Neither
does it distinguish between a carrier offering its services to the general
public and who offers services or solicits business only from a narrow
segment of the general population.
III. DISTINGUISHED FROM PRIVATE CARRIER.
Common carrier

Private Carrier

Carriage of passengers or goods,

provided it has space, for all who
opt to avail themselves of its
transportation service for a fee

Undertaken by special agreement

and the carrier does not hold
himself out to carry goods for the
general public

Provisions of the Civil Code on

common carriers protecting the
general public must be applied.

Parties may freely stipulate their

duties and obligations which
perforce would be binding on
them. Public policy embodied
therein is not contravened by
stipulations in a charter party
that lessen or remove the
protection given by law in
contracts involving common
carriers

Bound to exercise extraordinary

diligence

Bound to exercise diligence of a

good father of the family

Cannot stipulate that it is exempt

from liability for the negligence
of its agents or employees; void
being contrary to public policy

May validly enter into

stipulation exempting from
liability for the negligence of its
agents or employees

PROBLEMS:
1. Q: X charters a vessel owned and operated by Star Shipping Co., a
common carrier, for the purpose of transporting two tractors to his
logging concession. Stipulation in the charter agreement exempts
company from liability for loss or damage arising from negligence of its
agents.
A: Stipulation is valid if there was bareboat charter. A common carrier
that undertakes to carry a special cargo or charter to a special person

only, becomes a private carrier. As a private carrier, a stipulation

exempting the owner from liability for the negligence of its agent is valid,
being not against public policy. Shipping company is not liable.
2. Congressional candidate chartered helicopter owned by X company for
use in election campaign. Candidate paid same rate normally charged by
companies regularly engaged in the plane chartering business. In the
charter agreement, X company expressly disclaimed any responsibility
for the acts or omissions of its pilot or for defective condition of plane's
engine. Helicopter crashed due to pilot's error. Is X company liable?
A: It is not liable. A stipulation with a private carrier that would disclaim
responsibility for simple negligence of the carrier's employee is a valid
stipulation. Such stipulation, however, would not hold for gross
negligence or bad faith.
3. Q: X Co hired entire vessel. Owner and shipper agree on a stipulation
exempting the owner from liability for the negligence of its agents. When
cargo was delivered to the consignee, there were shortages amounting to
10.5k. Insurance company paid for damage and sought reimbursement
from X Shipping Lines as carrier. Is the carrier liable?
A: No, if there was a bareboat charter. X Shipping Lines agreed to carry a
special cargo or chartered to a special person only, becomes a private
carrier. Hence, Civil Code provisions on common carriers cannot be
applied where the carrier is not acting as such but as a private carrier. As
a private carrier, a stipulation exempting the ship owner from liability for
the negligence of its agents is not against policy and is deemed valid.
PEDRO DE GUZMAN V. CA
MR. & MRS. ENGRACIO FABRE V. CA
ESTRELITA BASCOS V. CA
FGU INSURANCE CORPORATION V. GP SARMIENTO TRUCKING
CORPORATION
ASIA LIGHTERING AND SHIPPING INC V. CA
ESTELA CRISOSTOMO V. CA
IV. DISTINGUISHED
STEVEDORING.

FROM

TOWAGE,

ARRASTRE

AND

Towage one vessel is hired to bring another vessel to another place. Ex.
Tugboat its operator is not considered a common carrier
In maritime law, it refers to a service rendered to a vessel by towing for
the mere purpose of expediting her voyage without reference to any
circumstances of danger. Usually confined to vessels that have received
no injury or damage.

Functions of an arrastre operator

1. to receive, handle, care for, and deliver all merchandise imported and
exported, upon or passing over Government-owned wharves and piers in
the port
2. to record check all merchandise which may be delivered to said port at
shipside, and in general
3. to furnish light, and water services and other incidental services in
order to undertake its arrastre service.

Notes in Transportation Laws | MA. ANGELA B. BONIFACIO 3

Functions of an arrastre operator has nothing to do with the

trade and business of navigation, nor to the use or operation of
vessels
arrastre operator's services are not maritime and no different
from those of a depositary or warehouseman;
maritime transportation are merely incidental
The operation of an arrastre operator starts on and its
responsibility for the merchandise and goods begins from the
time they are placed upon the wharves or piers or delivered
along sides of ships

Stevedoring involves the loading and unloading of coastwise vessels

calling at the port
V. GOVERNING LAWS
Art. 1766. In all matters not regulated by this Code, the rights and
obligations of common carriers shall be governed by the Code of
Commerce and by special laws.
Art. 1753. The law of the country to which the goods are to be
transported shall govern the liability of the common carrier for their
loss, destruction or deterioration.

In all matters not regulated by the Civil Code, the rights and
obligations of common carrier shall be governed by the Code
of Commerce and special laws. Thus, the Carriage of Goods by
Sea Act, a special law, is suppletory to the provisions of the
Civil Code.
Thus Philippine laws shall apply if the goods are to be
transported from Japan to Philippines. It is immaterial that the
collision occurred in foreign waters.

Treaties are also part of the law of the land. In international air
transportation, the Warsaw Convention with its amendments should be
applied.
International air transportation means:
(a) the place of departure and the place of destination are within the
territories of 2 contracting countries regardless of whether or not there
was a break in the transportation or transhipment;
(b) the place of departure and the place of destination are within the
territory of a single contracting country if there is an agreed stopping
place within a territory subject to the sovereignty, mandate or authority
of another power, even though the power is not a party to the
Convention.
A. SUMMARY OF RULES
a. Coastwise Shipping.
1. New Civil Code (Art. 1732-1766) primary law
2. Code of Commerce governs suppletorily in absence of Civil Code
provisions
b. Carriage from Foreign Ports to Philippine Ports
1. New Civil Code primary law
2. Code of Commerce all matters not regulated by the Civil Code
3. Carriage of Goods by Sea Act suppletorily to the Civil Code
c. Carriage from Philippine Ports to Foreign Ports
1. The laws of the country to which the goods are to be transported.
d. Overland Transportation
1. Civil Code primary law
2. Code of Commerce suppletorily
e. Air Transportation

1. Civil Code
2. Code of Commerce
3. For international carriage Convention for the Unification of Certain
Rules Relating to the International Carriage by Air or Warsaw
Convention with its Amendments
VI. NATURE OF BUSINESS
Common carriers are public utilities; they are enterprises that specially
cater to the needs of the public and conduce to their comfort and
convenience. They are impressed w/ public interest and concern; thus,
subject to regulation by the State.
Business of common carriers impinges directly and intimately upon the
safety, well being and property of the members of the general community
who happen to deal with such carrier. The law imposes duties and
liabilities upon common carriers for the safety and protection of those
who utilize their services.
VII. REGISTERED OWNER RULE AND KABIT SYSTEM.
A. REGISTRATION LAWS.
Registration of motor vehicles is governed by RA 4136 or The Land
Transportation and Traffic Code administered by LTO. The pertinent
provisions are as follows:
Section 5. All motor vehicles and other vehicles must be registered.
(a) No motor vehicle shall be used or operated on or upon any public
highway of the Philippines unless the same is properly registered for
the current year in accordance with the provisions of this Act.
(b) Any registration of motor vehicles not renewed on or before the
date fixed for different classifications, as provided hereunder shall
become delinquent and invalid:
1. For hire motor vehicles - on or before the last working day of
February.
2. Privately-owned motor vehicles - from March one to the last working
day of May.
3. All other motor vehicles - from June one to the last working day of
June; except when the plates of such motor vehicles are returned to the
Commission in Quezon City or to the Office of the Motor Vehicles
Registrar in the provincial or city agency of the Commission on or
before the last working day of December of the year of issue.
(c) Dealer's reports - The Commissioner of Land Transportation shall
require dealers to furnish him with such information and reports
concerning the sale, importation, manufacture, number of stocks,
transfer or other transactions affecting motor vehicles as may be
necessary for the effective enforcement of the provisions of this Act.

(d) Change of motor number prohibited. - No repair or change in the

motor vehicle involving the exchange, elimination, effacing, or
replacing of the original or registered serial or motor number as
stamped or imprinted, shall be allowed, and any motor vehicle with a
trace of having its motor number altered or tampered with shall be
refused registration or re-registration, unless such is satisfactorily
explained and approved by the Commissioner.
(e) Encumbrances of motor vehicles. - Mortgages, attachments, and
other encumbrances of motor vehicles, in order to be valid, must be
recorded in the Land Transportation Commission and must be
properly recorded on the face of all outstanding copies of the
certificates of registration of the vehicle concerned.
Notes in Transportation Laws | MA. ANGELA B. BONIFACIO 4

Cancellation or foreclosure of such mortgages, attachments, and other

encumbrances shall likewise be recorded, and in the absence of such
cancellation, no certificate of registration shall be issued without the
corresponding notation of mortgage, attachment and/or other
encumbrances.
Records of encumbrances of motor vehicles shall be kept by the Land
Transportation Commission in chronological sequence and shall
contain, among other things, the time, date and number of the entry in
a "Book of Motor Vehicles" referring to the creation, cancellation or
foreclosure of the aforesaid mortgages, attachments or to other
encumbrances.
The Land Transportation Commission shall collect a fee of five pesos
for every annotation of a mortgage, attachment and/or other
encumbrances, or cancellation thereof.
Section 14. Issuance of certificates of registration. - A properly
numbered certificate of registration shall be issued for each separate
motor vehicle after due inspection and payment of corresponding
registration fees.
Section 15. Use and authority of certificate of registration.
(a) The said certificate shall be preserved and carried in the car by the
owner as evidence of the registration of the motor vehicle described
therein, and shall be presented with subsequent applications for reregistration, transfer of ownership, or recording of encumbrances:
Provided, That in lieu of the certificate of registration a true copy or
photostat thereof may be carried in the motor vehicle.
(b) The certificate of registration issued under the provisions of this
Act for any motor vehicle shall, while the same is valid and effective
and has not been suspended or revoked, be the authority for the
operation of such motor vehicle.
(c) No motor vehicle shall be operated on the public highways in a
manner which would place it under a classification requiring the
payment of a larger registration fee than that stated in the certificate of
registration.
Section 16. Suspension of registration certificate. - If on inspection, as
provided in paragraph (6) of Section four hereof, any motor vehicle is
found to be unsightly, unsafe, overloaded, improperly marked or
equipped, or otherwise unfit to be operated, or capable of causing
excessive damage to the highways, or not conforming to minimum
standards and specifications, the Commissioner may refuse to register
the said motor vehicle, or if already registered, may require the number
plates thereof to be surrendered to him, and upon seventy-two hours
notice to the owner of the motor vehicle, suspend such registration
until the defects of the vehicle are corrected and/or the minimum
standards and specifications fully complied with.
Whenever it shall appear from the records of the Commission that
during any twelve-month period more than three warnings for
violations of this Act have been given to the owner of a motor vehicle,
or that the said owner has been convicted by a competent court more
than once for violation of such laws, the Commissioner may, in his
discretion, suspend the certificate of registration for a period not
exceeding ninety days and, thereupon, shall require the immediate
surrender of the number plates.

The Commissioner shall notify the owner of the motor vehicle of any
action taken by him under this section.
Section 17. Number plates, preparation, preparation and issuance of . (a) The Commissioner shall cause number plates to be prepared and
issued to owners of motor vehicles and trailers registered under this
Act, charging a fee of four pesos for each pair including the numerals
indicating the year of registry: Provided, however, That in case no
number plates are available, the Commissioner or his deputies may
issue, without charge, a written permit temporarily authorizing the
operation of any motor vehicles with other means of identification:
Provided, further, That all motor vehicles exempted from payment of
registration fees, motor vehicles for hire, and privately-owned motor
vehicles shall bear plates so designed and painted with different colors
to distinguish one class from another: Provided, furthermore, That the
plates of motor vehicles exempted from payment of registration fees
shall be permanently assigned to such motor vehicles during their
entire lifetime while exempted from payment of the fees: And,
provided, finally, That the owner thereof shall return such plates to the
Land Transportation Commission within a period of seven working
days after such owner has lost his exemption privilege or has
transferred the vehicle to a non-exempt owner.
(b) In case the design of the number plate is such that the numerals
indicating the year of registry are on a detachable tag, the
Commissioner or his deputies may, in their discretion, issue the said
tag only for subsequent re-registration charging a fee of one peso for
each tag issued.
Section 18. Use of number plates. - At all times, every motor vehicle
shall display in conspicuous places, one in front and one in the rear
thereof, the said number plates.
The number plates shall be kept clean and cared for, and shall be
firmly affixed to the motor vehicle in such a manner as will make it
entirely visible and always legible.
Except in the case of dealer's number plates which may be used
successively on various motor vehicles in stock, no person shall
transfer number plates from motor vehicle to another.
No dealer's number plate shall be used on any motor vehicle after said
vehicle has been sold and delivered to a purchaser, and no dealer shall
allow such dealer's number plates to be used on any motor vehicle
after its sale and delivery to a purchaser.

B. REGISTERED OWNER RULE.

RULE: The person who is the registered owner of a vehicle although the
same was already sold or conveyed to another person at the time of the
accident. The registered owner is liable to the injured party subject to his
right of recourse against the transferee or the buyer.
- this even applies to cases where the vehicle is being leased to another
person

Whenever a motor vehicle is found to be underweight the owner

thereof shall pay the difference in the registration fees corresponding
to the shortage in weight plus a fifty per cent surcharge, and until such
payment is made, the certificate of registration of the motor vehicle
concerned shall be suspended by the Commissioner.

Revised Motor Vehicles Law

- no vehicle may be used or operated upon any public highway unless
the same is properly registered

After two such suspension, re-registration of the vehicle concerned for

one year may be denied.

Registration is required not to make said registration the operative act by

which ownership is transferred, as in land registration cases, because the
administrative proceeding of registration does not bear any essential
Notes in Transportation Laws | MA. ANGELA B. BONIFACIO 5

relation to the contract of sale between the parties, but to permit the use
and operation of the vehicle upon any public highway.
AIM: to identify the owner so that if any accident happens, or that any
damage or injury is caused by the vehicle on the public highways,
responsibility therefor can be fixed on a definite individual, the registered
owner.
NOTE: Registered owner is not liable if the vehicle was taken from his
garage without knowledge and consent.

vehicle is its true owner regardless of any unregistered sale of the vehicle.
SANTOS V. SIBUG
BALIWAG TRANSIT INC. V. CA
LITA ENTERPRISES, INC. SECOND CIVIL CASES DIVISION

C. KABIT SYSTEM.
The registered owner rule is applicable whenever the persons involved
are engaged in what is known as the kabit system is an arrangement
whereby a person who has been granted a certificate of public
convenience allows other persons who own motor vehicles to operate
them under his license, sometimes for a fee or percentage of the earnings.
- not outrightly penalized by law
- contrary to public policy
- void and inexistent under art 1409
Art. 1409. The following contracts are inexistent and void from the
beginning:
(1) Those whose cause, object or purpose is contrary to law, morals,
good customs, public order or public policy
xxx
a. Pari Delicto Rule
Persons who are parties to the kabit system cannot invoke the same as
against each other either to enforce their illegal agreement or to invoke
the same to escape liability.
- consistent with the maxim PACTO ILLICITO NON ORITUR ACTION
[No action arises out of an illicit bargain.]
- Having entered into an illegal contract, neither can seek relief from the
courts and each must bear the consequences of his acts.
b. Aircrafts and Vessels.
- prohibition on kabit system may also apply to vessels and aircrafts
RULE: No person can operate a common carrier without securing a
certificate of public convenience and necessity. Hence, persons without
the certificate cannot circumvent the law by using the certificate of
another. No permits or certificate can be transferred without permission
of the government agency concerned.
CIVIL AERONAUTICS ACT:
Conveyance of aircrafts is not valid EXCEPT to the parties and other
persons who have notice until the transfer is registered with the Civil
Aeronautics Board.
PROBLEMS:
Q: A is the registered owner of a truck for hire. He sold the truck to B and
possession was immediately delivered to B who operated the same. The
truck remained registered in A's name. While operating the truck, B's
driver ran over a child who died thereafter. The heirs of the child sued A
for damages. A's defense is that he cannot be held liable as he had
already sold the truck to B and it was B's driver who was responsibility
for the accident. Decide.
A: A is liable to theirs of the victim. Under the registered owner rule, the
registered owner remains to be liable to third persons without knowledge
of the transfer. As to said third person, the registered owner of a motor
Notes in Transportation Laws | MA. ANGELA B. BONIFACIO 6