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or civil;
Course Outline
(3) Act of omission of the shipper or owner of the goods;
I. PRELIMINARY CONSIDERATIONS
(4) The character of the goods or defects in the packing or
A. Pertinent Laws in the containers;
1) New Civil Code of the Philippines (5) Order or act of competent public authority.
SUBSECTION 1. - General Provisions In all cases other than those mentioned in Nos. 1, 2, 3, 4,
and 5 of the preceding article, if the goods are lost,
Art. 1732. destroyed or deteriorated, common carriers are presumed
to have been at fault or to have acted negligently, unless
Common carriers are persons, corporations, firms or
they prove that they observed extraordinary diligence as
associations engaged in the business of carrying or
required in Article 1733.
transporting passengers or goods or both, by land, water,
or air, for compensation, offering their services to the Art. 1736.
public.
The extraordinary responsibility of the common carrier
Art. 1733. lasts from the time the goods are unconditionally placed in
the possession of, and received by the carrier for
Common carriers, from the nature of their business and
transportation until the same are delivered, actually or
for reasons of public policy, are bound to observe
constructively, by the carrier to the consignee, or to the
extraordinary diligence in the vigilance over the goods and
person who has a right to receive them, without prejudice
for the safety of the passengers transported by them,
to the provisions of Article 1738.
according to all the circumstances of each case.
Art. 1737.
Such extraordinary diligence in the vigilance over the
goods is further expressed in Articles 1734, 1735, and The common carrier's duty to observe extraordinary
1745, Nos. 5, 6, and 7, while the extraordinary diligence for diligence over the goods remains in full force and effect
the safety of the passengers is further set forth in Articles even when they are temporarily unloaded or stored in
1755 and 1756. transit, unless the shipper or owner has made use of the
right of stoppage in transitu.
SUBSECTION 2. - Vigilance Over Goods
Art. 1738.
Art. 1734.
The extraordinary liability of the common carrier
Common carriers are responsible for the loss, destruction,
continues to be operative even during the time the goods
or deterioration of the goods, unless the same is due to any
are stored in a warehouse of the carrier at the place of
of the following causes only:
destination, until the consignee has been advised of the
(1) Flood, storm, earthquake, lightning, or other natural arrival of the goods and has had reasonable opportunity
disaster or calamity; thereafter to remove them or otherwise dispose of them.
In order that the common carrier may be exempted from (2) Supported by a valuable consideration other than the
responsibility, the natural disaster must have been the service rendered by the common carrier; and
proximate and only cause of the loss. However, the
common carrier must exercise due diligence to prevent or (3) Reasonable, just and not contrary to public policy.
minimize loss before, during and after the occurrence of
flood, storm or other natural disaster in order that the Art. 1745.
common carrier may be exempted from liability for the
Any of the following or similar stipulations shall be
loss, destruction, or deterioration of the goods. The same
considered unreasonable, unjust and contrary to public
duty is incumbent upon the common carrier in case of an
policy:
act of the public enemy referred to in Article 1734, No. 2.
(1) That the goods are transported at the risk of the owner
Art. 1740.
or shipper;
If the common carrier negligently incurs in delay in
(2) That the common carrier will not be liable for any loss,
transporting the goods, a natural disaster shall not free
destruction, or deterioration of the goods;
such carrier from responsibility.
(3) That the common carrier need not observe any
Art. 1741.
diligence in the custody of the goods;
If the shipper or owner merely contributed to the loss,
(4) That the common carrier shall exercise a degree of
destruction or deterioration of the goods, the proximate
diligence less than that of a good father of a family, or of a
cause thereof being the negligence of the common carrier,
man of ordinary prudence in the vigilance over the
the latter shall be liable in damages, which however, shall
movables transported;
be equitably reduced.
(5) That the common carrier shall not be responsible for
Art. 1742.
the acts or omission of his or its employees;
Even if the loss, destruction, or deterioration of the goods
(6) That the common carrier's liability for acts committed
should be caused by the character of the goods, or the
by thieves, or of robbers who do not act with grave or
faulty nature of the packing or of the containers, the
irresistible threat, violence or force, is dispensed with or
common carrier must exercise due diligence to forestall or
diminished;
lessen the loss.
(7) That the common carrier is not responsible for the loss,
Art. 1743.
destruction, or deterioration of goods on account of the
If through the order of public authority the goods are defective condition of the car, vehicle, ship, airplane or
seized or destroyed, the common carrier is not responsible, other equipment used in the contract of carriage.
provided said public authority had power to issue the
Art. 1746.
order.
An agreement limiting the common carrier's liability may
Art. 1744.
be annulled by the shipper or owner if the common carrier
A stipulation between the common carrier and the shipper refused to carry the goods unless the former agreed to
or owner limiting the liability of the former for the loss, such stipulation.
destruction, or deterioration of the goods to a degree less
than extraordinary diligence shall be valid, provided it be:
Aimee Nono Calo [Transportation Law] Page 2
Art. 1747. Art. 1754.
If the common carrier, without just cause, delays the The provisions of Articles 1733 to 1753 shall apply to the
transportation of the goods or changes the stipulated or passenger's baggage which is not in his personal custody or
usual route, the contract limiting the common carrier's in that of his employee. As to other baggage, the rules in
liability cannot be availed of in case of the loss, Articles 1998 and 2000 to 2003 concerning the
destruction, or deterioration of the goods. responsibility of hotel-keepers shall be applicable.
Even when there is an agreement limiting the liability of The reduction of fare does not justify any limitation of the
the common carrier in the vigilance over the goods, the common carrier's liability.
common carrier is disputably presumed to have been
negligent in case of their loss, destruction or deterioration. Art. 1759.
Art. 1753. Common carriers are liable for the death of or injuries to
passengers through the negligence or wilful acts of the
The law of the country to which the goods are to be former's employees, although such employees may have
transported shall govern the liability of the common carrier acted beyond the scope of their authority or in violation of
for their loss, destruction or deterioration. the orders of the common carriers.
The common carrier's responsibility prescribed in the In all matters not regulated by this Code, the rights and
preceding article cannot be eliminated or limited by obligations of common carriers shall be governed by the
stipulation, by the posting of notices, by statements on the Code of Commerce and by special laws.
tickets or otherwise.
2) Code of Commerce
Art. 1761.
COMMERCIAL CONTRACTS FOR
The passenger must observe the diligence of a good father TRANSPORTATION
of a family to avoid injury to himself.
ARTICLE 349.
Art. 1762.
A contract of transportation by land or water ways of any
kind shall be considered commercial:
The contributory negligence of the passenger does not bar
recovery of damages for his death or injuries, if the 1. When it has for its object merchandise or any article
proximate cause thereof is the negligence of the common of commerce.
carrier, but the amount of damages shall be equitably
reduced. 2. When, whatever its object may be, the carrier is a
merchant or is habitually engaged in transportation for the
Art. 1763. public.
If there is no period fixed for the delivery of the goods the ARTICLE 362.
carrier shall be bound to forward them in the first
shipment of the same or similar goods which he may make Nevertheless, the carrier shall be liable for the losses and
point where he must deliver them; and should he not do damages resulting from the causes mentioned in the
so, the damages caused by the delay should be for his preceding article if it is proved, as against him, that they
account. arose through his negligence or by reason of his having
failed to take the precautions which usage has established
ARTICLE 359. among careful persons, unless the shipper has committed
fraud in the bill of lading, representing the goods to be of a
If there is an agreement between the shipper and the kind or quality different from what they really were.
carrier as to the road over which the conveyance is to be
made, the carrier may not change the route, unless it be by If, notwithstanding the precautions referred to in this
reason of force majeure; and should he do so without this article, the goods transported run the risk of being lost, on
cause, he shall be liable for all the losses which the goods account of their nature or by reason of unavoidable
he transports may suffer from any other cause, beside accident, there being no time for their owners to dispose
paying the sum which may have been stipulated for such of them, the carrier may proceed to sell them, placing them
case. for this purpose at the disposal of the judicial authority or
of the officials designated by special provisions.
When on account of said cause of force majeure, the
carrier had to take another route which produced an ARTICLE 363.
increase in transportation charges, he shall be reimbursed
for such increase upon formal proof thereof. Outside of the cases mentioned in the second paragraph of
Article 361, the carrier shall be obliged to deliver the goods
ARTICLE 360. shipped in the same condition in which, according to the
bill of lading, they were found at the time they were
The shipper, without changing the place where the delivery received, without any damage or impairment, and failing to
is to be made, may change the consignment of the goods do so, to pay the value which those not delivered may have
which he delivered to the carrier, provided that at the time at the point and at the time at which their delivery should
of ordering the change of consignee the bill of lading have been made.
signed by the carrier, if one has been issued, be returned to
him, in exchange for another wherein the novation of the If those not delivered form part of the goods transported,
contract appears. the consignee may refuse to receive the latter, when he
proves that he cannot make use of them independently of
The expenses which this change of consignment occasions the others.
shall be for the account of the shipper.
ARTICLE 364.
ARTICLE 361.
If the effect of the damage referred to in Article 361 is
[The merchandise shall be transported at the risk and merely a diminution in the value of the goods, the
venture of the shipper, if the contrary has not been obligation of the carrier shall be reduced to the payment of
expressly stipulated. the amount which, in the judgment of experts, constitutes
such difference in value.
As a consequence, all the losses and deteriorations which
the goods may suffer during the transportation by reason ARTICLE 365.
of fortuitous event, force majeure, or the inherent nature
and defect of the goods, shall be for the account and risk If, in consequence of the damage, the goods are rendered
of the shipper. useless for sale and consumption for the purposes for
Within the twenty-four hours following the receipt of the ARTICLE 370.
merchandise, the claim against the carrier for damage or
average be found therein upon opening the packages, may If a period has been fixed for the delivery of the goods, it
be made, provided that the indications of the damage or must be made within such time, and, for failure to do so,
average which gives rise to the claim cannot be ascertained the carrier shall pay the indemnity stipulated in the bill of
from the outside part of such packages, in which case the lading, neither the shipper nor the consignee being entitled
claim shall be admitted only at the time of receipt. to anything else.
After the periods mentioned have elapsed, or the If no indemnity has been stipulated and the delay exceeds
transportation charges have been paid, no claim shall be the time fixed in the bill of lading, the carrier shall be liable
admitted against the carrier with regard to the condition in for the damages which the delay may have caused.
which the goods transported were delivered.
ARTICLE 371.
ARTICLE 367.
In case of delay through the fault of the carrier, referred to
If doubts and disputes should arise between the consignee in the preceding articles, the consignee may leave the
and the carrier with respect to the condition of the goods goods transported in the hands of the former, advising him
transported at the time their delivery to the former is thereof in writing before their arrival at the point of
made, the goods shall be examined by experts appointed destination.
by the parties, and, in case of disagreement, by a third one
When this abandonment takes place, the carrier shall pay
appointed by the judicial authority, the results to be
the full value of the goods as if they had been lost or
reduced to writing; and if the interested parties should not
mislaid.
agree with the expert opinion and they do not settle their
differences, the merchandise shall be deposited in a safe If the abandonment is not made, the indemnification for
warehouse by order of the judicial authority, and they shall losses and damages by reason of the delay cannot exceed
exercise their rights in the manner that may be proper. 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.
The provisions contained in Articles 349 and following Co-owners of vessels shall have the right of repurchase
shall be understood as equally applicable to those who, and redemption in sales made to strangers, but they may
although they do not personally effect the transportation exercise the same only within the nine days following the
of the merchandise, contract to do so through others, inscription of the sale in the registry, and by depositing the
either as contractors for a particular and definite operation, price at the same time.
or as agents for transportations and conveyances.
ARTICLE 576.
In either case they shall be subrogated in the place of the
carriers themselves, with respect to the obligations and In the sale of a vessel it shall always be understood as
responsibility of the latter, as well as with regard to their included the rigging, masts, stores and engine of a streamer
rights. appurtenant thereto, which at the time belongs to the
vendor.
MARITIME COMMERCE
The arms, munitions of war, provisions and fuel shall not
TITLE ONE be considered as included in the sale.
In every case the alienation of the vessel must be made to 4. The auction shall be held on the day fixed, with the
appear with a statement of whether the vendor receives its formalities prescribed in the common law for judicial sales.
price in whole or in part, or whether he preserves in whole
or in part any claim on said vessel. In case the sale is made 5. If the sale should take place while the vessel is in a
to a Filipino, this fact shall be stated in the certificate of foreign country, the special provisions governing such
navigation. cases shall be observed.
10. The indemnity due the shipper for the value of the The omission of this formality shall make the captain
goods shipped which were not delivered to the consignees, personally liable for the credits prejudiced on his account.
or for averages suffered for which the vessel is liable,
provided that either appear in a judicial or arbitration ARTICLE 584.
decision.
The vessels subject to liability for the credits mentioned in
ARTICLE 581. Article 580 may be attached and judicially sold in the
manner prescribed in Article 579, in the port in which they
If the proceeds of the sale should not be sufficient to pay may be found, at the instance of any of the creditors; but if
all the creditors included in one number or grade, the they should be loaded and ready to sail, the attachment
residue shall be divided among them pro rata. may not be effected except for debts contracted to prepare
and provision the vessel for the same voyage, and even
ARTICLE 582. then the attachment shall be dissolved if any person
interested in its sailing should give a bond for the return of
After the bill of the judicial sale at public auction has been the vessel within the period fixed in the certificate of
executed and inscribed in the registry of vessels, all the navigation binding himself to pay the indebtedness insofar
other liabilities of the vessel in favor of the creditors shall as it may be legal, should it fail to do so, even if this failure
be considered extinguished. be due to fortuitous event.
For all purposes of law not modified or restricted by the If two or more persons should be part owners of a
provisions of this Code, vessels shall continue to be merchant vessel, a partnership shall be presumed as
considered as personal property. established by the co-owners.
ARTICLE 588. All the part owners shall be liable, in proportion to their
respective ownership, for the expenses for repairing the
Neither the shipowner nor the ship agent shall be liable for vessel, and for other expenses which are incurred by virtue
the obligations contracted by the captain, if the latter of a resolution of the majority.
exceeds the powers and privileges pertaining to him by
reason of his position or conferred upon him by the
former.
After the account of the managing agent has been If the contracts of the captain and members of the crew
approved by a relative majority, the co-owners shall pay with the ship agent should be for a definite period or
the expenses in proportion to their interest, without voyage, they may not be discharged until after the
prejudice to the civil or criminal actions which the minority fulfillment of their contracts, except by reason of
may deem fit to institute afterwards. insubordination in serious matters, robbery, theft, habitual
drunkenness, or damage caused to the vessel or to its cargo
In order to enforce the payment, the managing agent shall through malice or manifest or proven negligence.
be entitled to an executory action ("accion ejecutiva"),
which shall be instituted by virtue of a resolution of the ARTICLE 606.
majority, and without further proceedings than the
acknowledgment of the signatures of the persons who If the captain should be a co-owner of the vessel, he may
voted for the resolution. not be discharged unless the ship agent returns to him the
amount of his interest therein, which, in the absence of
ARTICLE 601. agreement between the parties, shall be appraised by
experts appointed in the manner established in the law of
Should there be any profits, the co-owners may demand of civil procedure.
the managing agent the amount corresponding to their
interests by means of an executory action ("accion ARTICLE 607.
ejecutiva"), without any other requisite than the
acknowledgment of the signatures on the instrument If the captain who is a co-owner should have obtained the
approving the account. command of the vessel by virtue of a special agreement
contained in the articles of association, he may not be
ARTICLE 602. deprived of his office except for the causes mentioned in
Article 605.
The ship agent shall indemnify the captain for all the
expenses he may have incurred with funds of his own or ARTICLE 608.
of others, for the benefit of the vessel.
In case of the voluntary sale of the vessel, all contracts
ARTICLE 603. between the ship agent and the captain shall terminate,
reserving to the latter his right to the indemnity which may
Before the vessel sets out to sea the ship agent may at his pertain to him, according to the agreements made with the
discretion discharge the captain and members of the crew ship agent.
whose contracts are not for a definite period or voyage,
paying them the salaries earned according to their They vessel sold shall remain subject to the security of the
contracts, and without any indemnity whatsoever, unless payment of said indemnity if, after the action against the
there is an express and specific agreement in respect vendor has been instituted, the latter is found to be
thereto. insolvent.
If the captain or any other member of the crew should be CAPTAINS AND MASTERS OF VESSELS
discharged during the voyage, they shall receive their salary
until they return to the port where the contract was made, ARTICLE 609.
unless there should be just cause for the discharge, all in
accordance with Article 636 and following of this Code. Captains, masters or patrons of vessels must be Filipinos,
have legal capacity to contract in accordance with this
In the third book, called "freight book," he shall record the 7. To be on deck on reaching land and to take command
loading and discharge of all the goods, stating their marks on entering and leaving ports, canals, roadsteads, and
and packages, names of the shippers and of the rivers, unless there is a pilot on board discharging his
consignees, ports of loading and unloading, and the duties. He shall not spend the night away from the vessel
freightage they give. In this same book he shall record the except for serious causes or by reason of official business.
names and places of sailing of the passengers, the number
of packages in their baggage, and the price of passage. 8. To present himself, when making a port in distress, to
the maritime authority if in the Philippines and to the
Aimee Nono Calo [Transportation Law] Page 16
consul of the Republic of the Philippines if in a foreign 15. In case of wreck, to make the proper protest in due
country, before twenty-four hours have elapsed, and to form at the first port of arrival, before the competent
make a statement of the name registry, and port of authority or the Philippine consul, within twenty-four
departure of the vessel, of its cargo, and the cause of hours, specifying therein all the incidents of the wreck, in
arrival which declaration shall be visited by the authority or accordance with subdivision 8 of this article.
the consul, if after examining the same it is found to be
acceptable, giving the captain the proper certificate proving 16. To comply with the obligations imposed by the laws
his arrival in distress and the reasons therefor. In the and regulations on navigation, customs, health, and others.
absence of the maritime authority or of the consul, the
declaration must be made before the local authority. ARTICLE 613.
9. To take the necessary steps before the competent A captain who navigates for freight in common or on
authority in order to record in the certificate of the vessel shares may not make any separate transaction for his own
in the registry of vessels the obligations which he may account; and should he do so, the profit which may accrue
contract in accordance with Article 583. shall belong to the other persons interested, and the losses
shall be borne by him exclusively.
10. To place under good care and custody all the papers
and belongings of any members of the crew who might die ARTICLE 614.
on the vessel, drawing up a detailed inventory, in the
A captain who, having made an agreement to make a
presence of passengers, or, in their absence, of members of
voyage, fails to perform his undertaking, without
the crew as witnesses.
prevented by fortuitous accident or force majeure, shall
11. To conduct himself according to the rules and precepts indemnify for all the losses which he may cause without
contained in the instructions of the ship agent, being liable prejudice to the criminal penalties which may be proper.
for all that which he may do in violation thereof.
ARTICLE 615.
12. To inform the ship agent from the port at which the
Without the consent of the agent, the captain cannot have
vessel arrives, of the reason of his arrival, taking advantage
himself substituted by another person; and should he do
of the semaphore, telegraph, mail, etc., as the case may be;
so, besides being liable for all the acts of the substitute and
to notify him of the cargo he may have received, stating
bound to the indemnities mentioned in the foregoing
the names and domiciles of the shippers, freightage earned,
articles, the captain as well as the substitute may be
and amounts borrowed on bottomry loan; to advise him of
discharged by the ship agent.
his departure, and of any operation and date which may be
of interest to him. ARTICLE 616.
13. To observe the rules with respect to situation, lights If the provisions and fuel of the vessel should be
and maneuvers in order to avoid collisions. consumed before arriving at the port of destination, the
captain shall order, with the consent of the officers of the
14. To remain on board, in case the vessel is in danger,
same, the arrival at the nearest port to get a supply of
until all hope to save it is lost, and before abandoning it, to
either; but if there are persons on board who have
hear the officers of the crew, abiding by the decision of the
provisions of their own, he may force them to deliver said
majority; and if the boats are to be taken to, he shall take
provision for the common consumption of all those who
with him, before anything else, the books and papers, and
may be on board, paying the price thereof at the same
then the articles of most value, being obliged to prove, in
time, or at the latest, at the first port reached.
case of the loss of the books and papers, that he did all he
could to save them.
Neither may he borrow money on bottomry for his own 7. For those arising by reason of his voluntarily entering a
transactions, except on the portion of the vessel he owns, port other than that of his destination, outside of the cases
provided no money has been previously borrowed on the or without the formalities referred to in Article 612.
whole vessel, and there does not exist any other kind of
lien or obligation chargeable against the vessel. If he may 8. For those arising by reason of non-observance of the
do so, he must state what interest he has in the vessel. provisions contained in the regulations on situation of
lights and maneuvers for the purpose of preventing
In case of violation of this article, the principal, interest, collisions.
and costs shall be for the personal account of the captain,
and the ship agent may furthermore discharge him. ARTICLE 619.
ARTICLE 618. 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
The captain shall be civilly liable to the ship agent, and the port of loading, until he delivers it on the shore or on the
latter to the third persons who may have made contracts discharging wharf at the port of unloading, unless the
with the former; contrary has been expressly agreed upon.
1. For all the damages suffered by the vessel and its cargo ARTICLE 620.
by reason of want of skill or negligence on his part. If a
misdemeanor or crime has been committed, he shall be The captain shall not be liable for the damages caused to
liable in accordance with the Penal Code. the vessel or to the cargo by force majeure; but he shall
always be so for those arising through his own fault, no
2. For all the thefts committed by the crew, reserving his agreement to the contrary being valid.
right of action against the guilty parties.
Neither shall he be personally liable for the obligations he
3. For the losses, fines, and confiscations imposed an may have contracted for the repair, equipment, and
account of violation of customs, police, health, and provisioning of the vessel, which shall devolve upon the
navigation laws and regulations. ship agent, unless the former has expressly bound himself
personally or has signed a bill of exchange or promissory
4. For the losses and damages caused by mutinies on board note in his name.
the vessel or by reason of faults committed by the crew in
the service and defense of the same, if he does not prove ARTICLE 621.
that he made timely use of all his authority to prevent or
avoid them. A captain who borrows money on the hull, engine, rigging
or tackle of the vessel, or pledges or sells merchandise or
5. For those caused by the misuse of the powers and the provisions outside of the cases and without the formalities
non-fulfillment of the obligations pertaining to him in prescribed in this Code, shall be liable for the principal,
accordance with Articles 610 and 612. interests, and costs, and shall indemnify for the damages
he may cause.
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
Aimee Nono Calo [Transportation Law] Page 18
He who commits fraud in his accounts shall pay the log book and in that of the sailing mate, and shall deliver
amount defrauded and shall be subject to the provisions of to the captain the original record of the proceedings,
the Penal Code. stamped and folioed, with a memorandum of the folios,
which he must rubricate, in order that it may be presented
ARTICLE 622. to the judge or court of the port of destination.
If while on a voyage the captain should learn of the The statement of the captain shall be accepted if it is in
appearance of privateers or men of war against his flag, he accordance with those of the crew and passengers; if they
shall be obliged to make the nearest neutral port, inform disagree, the latter shall be accepted, always saying proof to
his agent or shippers, and await an occasion to sail under the contrary.
convoy, or until the danger is over or he has received
express orders from the ship agent or the shippers. ARTICLE 625.
The captain shall proceed in the same manner, if, the 1. To have the qualifications required by the marine or
vessel having been wrecked; he is saved alone or with part navigation laws or regulations.
of his crew, in which case he shall appear before the
nearest authority, and make a sworn statement of facts. 2. Not to be disqualified in accordance therewith for the
discharge of his duties.
The authority or the consul shall verify the said facts
receiving sworn statements of the members of the crew ARTICLE 627.
and passengers who may have been saved; and taking such
The sailing mate, as the second chief of the vessel, and
other steps as may assist in arriving at the facts he shall
unless the agent orders otherwise, shall take the place of
make a statement of the result of the proceedings in the
the captain in cases of absence, sickness, or death, and
The sailing mate must provide himself with charts of the The following shall be the obligations of the second mate:
seas in which he will navigate with the astronomical tables
and instruments for observation which are in use and 1. To watch over the preservation of the hull and rigging
which are necessary for the discharge of his duties, being of the vessel, and to take charge of the preservation of the
liable for the accidents which may arise by reason of his tackle and equipment which make up her outfit, suggesting
omission in this regard. to the captain the repairs necessary and the replacement of
the goods and implements which are rendered useless and
ARTICLE 629. are lost.
The sailing mate shall particularly and personally keep a 2. To take care that the cargo is well arranged, keeping the
book, folioed and stamped on all its pages, denominated vessel always ready for maneuver.
"Binnacle Book" with a memorandum at the beginning
stating the number of folios it contains, signed by the 3. To preserve order, discipline, and good service among
competent authority, and shall enter therein daily the the crew, requesting the necessary orders and Instructions
distance, the course travelled, the variations of the needle, of the captain, and giving him prompt information of any
the leeway, the direction and force of the wind, the occurrence in which the intervention of his authority may
condition of the atmosphere and of the sea, the rigging set, be necessary.
the latitude and longitude observed, the number of furnace
heated, the steam pressure, the number of revolutions, and 4. To assign to each sailor the work he is to do on board,
under the title "incidents," the maneuvers made, the in accordance with the instruction received and to see that
meeting with other vessels, and all the details and incidents it is promptly and accurately carried out.
which. may occur during the voyage.
5. To take charge under inventory of the rigging and all the
ARTICLE 630. equipment of the vessel, if it should be laid up, unless the
ship agent has ordered otherwise.
In order to change the course and to take the one most
convenient for a good voyage of the vessel, the sailing With regard to engineers the following rules shall govern:
mate shall come to an agreement with the captain. If the
1. In order to be taken on board as a marine engineer
latter should object, the sailing mate shall state to him the
forming part of the complement of a merchant vessel, it
proper observations in the presence of the other officers
shall be necessary to have the qualifications which the laws
of the sea. If the captain should still insist on his negative
and regulations require, and not be disqualified in
decision, the sailing mate shall make the proper protest,
accordance therewith for the discharge of his duties.
signed by him and by one other officer, in the log book,
Engineers shall be considered officers of the vessel but
and shall obey the captain, who alone shall be responsible
they shall have no authority or intervention except in
for the consequences of his decision.
matters referring to the motor apparatus.
ARTICLE 631.
2. When there are two or more engineers on board a
The sailing mate shall be responsible for all the damages vessel, one of them shall be the chief, and the other
caused to the vessel and the cargo by reason of his engineers and all the personnel of the engines shall be
negligence or want of skill without prejudice to the under his orders; he shall also have charge of the motor
apparatus, the spare parts, the instruments and tools
If, without obtaining said permission, the seaman who has The captain may, however, before getting out on a voyage
signed for one vessel should sign for another one, the and without giving any reason, refuse to permit a seaman
second contract shall be void, and the captain may choose whom he may have engaged to go on board, and leave him
between forcing him to fulfill the service to which he first on land, in which case he will be obliged to pay him his
bound himself, or at his expense to look for a person to wages as if he had rendered services.
substitute him.
This indemnity shall be paid from the funds of the vessel if
Furthermore, he shall lose the wages earned on his first the captain should have acted for reasons of prudence and
contract, to the benefit of the vessel for which he had in the interest of the safety and good services of the
signed. farmer. Should this not be the case, it shall be paid by the
captain personally.
A captain who, knowing that a seaman is in the service of
another vessel, should have made a new agreement with After the voyage has begun, during the same, and until the
him without having required of him the permission conclusion thereof, the captain may not abandon any
referred to in the preceding paragraphs, shall be member of his crew on land or on sea, unless, by reason of
subsidiarily responsible to the captain of the vessel to some crime, his imprisonment and delivery to the
which the seaman first belonged, for that part of the competent authority in the first port touched should be
indemnity, referred to in the third paragraph of this article, proper, a matter obligatory for the captain.
which the seaman may not be able to pay.
ARTICLE 638.
ARTICLE 636.
If, after the crew has been engaged, the voyage is revoked
If there is no fixed period for which a seaman has been by the will of the ship agent or of the charterers before or
contracted he may not be discharged until the end of the after the vessel has put to sea, or if the vessel is for the
return voyage to the port where he enlisted. same reason given a destination different from that fixed in
the agreement with the crew, the latter shall be indemnified
ARTICLE 637. on account of the rescission of the contract, according to
the cases follows:
Neither may the captain discharge a seaman during the
time of his contract except for just cause, the following 1. If the revocation of the voyage should be decided upon
being considered as such: before the departure of the vessel from the port, each
sailor engaged shall be given one month's salary, besides
1. The perpetration of a crime which disturbs order on the what may be due him, in accordance with his contract, for
vessel. the services rendered to the vessel up to the date of the
revocation.
2. Repeated insubordination, want of discipline, or non-
fulfillment of the service.
Aimee Nono Calo [Transportation Law] Page 22
2. If the agreement should have been for a fixed amount ARTICLE 639.
for the whole voyage, that which may be due for said
month and days shall be determined in proportion to the If the revocation of the voyage should arise from a just
approximate number of days the voyage should have cause independent of the will of the ship agent and
lasted, in the judgment of experts, in the manner charterers, and the vessel should not have left the port, the
established in the law of Civil Procedure; and if the members of the crew shall have no other right than to
proposed voyage should be of such short duration that it is collect the wages earned up to the day on which the
calculated at approximately one month, the indemnity shall revocation took place.
be fixed for fifteen days, discounting in all cases the sums
advanced. ARTICLE 640.
3. If the revocation should take place after the vessel has The following shall be just causes for the revocation of the
put to sea, the seamen engaged for a fixed amount for the voyage.
voyage shall receive in full the salary which may have been
1. A declaration of war or interdiction of commerce with
offered them as if the voyage had terminated; and those
the power to whose territory the vessel was bound.
engaged by the month shall receive the amount
corresponding to the time they might have been on board 2. The blockade of the port of its destination, or the
and to the time they may require to arrive at the port of breaking out of an epidemic after the agreement.
destination, the captain being obliged, furthermore, to pay
the seamen in both cases, the passage to the said port or to 3. The prohibition to receive in said port the goods which
the port of sailing of the vessel, as may be convenient for make up the cargo of the vessel.
them.
4. The detention or embargo of the same by order of the
4. If the ship agent or the charterers of the vessel should government, or for any other reason independent of the
give it a destination different from that fixed in the will of the ship agent.
agreement, and the members of the crew should not agree
thereto, they shall be given by way of indemnity half the 5. The inability of the vessel to navigate.
amount fixed in case No. 1, besides what may be owed
them for the part of the monthly wages corresponding to ARTICLE 641.
the days which have elapsed from the date of their
agreements. If, after a voyage has been begun, any of the first three
causes mentioned in the foregoing article should occur, the
If they accept the change, and the voyage, on account of sailors shall be paid at the port which the captain may
the greater distance or of other reasons, should give rise to deem advisable to make for the benefit of the vessel and
an increase of wages, the latter shall be adjusted privately cargo, according to the time they may have served thereon;
or through amicable arbitrators in case of disagreement. but if the vessel is to continue its voyage, the captain and
Even though the voyage should be shortened to a nearer the crew may mutually demand the enforcement of the
point, this shall not give rise to a reduction in the wages contract.
agreed upon.
In case of the occurrence of the fourth cause, the crew
If the revocation or change of the voyage should come shall continue to be paid half wages, if the agreement is by
from the shippers or charterers, the agent shall have a right month; but if the detention should exceed three months,
to demand of them the indemnity which may be justly due. 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.
Aimee Nono Calo [Transportation Law] Page 23
In the fifth case, the crew shall have no other right than to attended and cured at the expense of the common funds
collect the wages earned; but if the disability of the vessel deducting, before anything else, from the proceeds of the
should have been caused by the negligence or lack of skill freightage the cost of the attendance and cure.
of the captain, engineer, or sailing mate, they shall
indemnify the crew for the damages suffered, always ARTICLE 645.
without prejudice to the criminal liability which may be
proper. If a seaman should die during the voyage, his heirs will be
given the wages earned and not received according to his
ARTICLE 642. contract and the cause of his death, namely —
If the crew have been engaged on shares, they shall not be If he died a natural death and was engaged on wages, that
entitled, by reason of the revocation, delay, or greater which may have been earned up to the date of his death
extension of the voyage, to anything but the proportionate shall be paid.
part of the indemnity which way be paid into the common
funds of the vessel by the persons liable for said If the contract was for a fixed sum for the whole voyage,
occurrences. half the amount earned shall be paid if the seamen died on
the voyage out, and the whole amount if he died on the
ARTICLE 643. return voyage.
If the vessel and her cargo should be totally lost, by reason And if the contract was on shares and death occurred after
of capture or wreck, all rights shall be extinguished, both the voyage was begun, the heirs shall be paid the entire
as regards the crew to demand any wages whatsoever, and portion due the seaman; but if the latter died before the
as regards the ship agent to recover the advances made. departure of the vessel from the port, the heirs shall not be
entitled to claim anything.
If a portion of the vessel or of the cargo, or of both,
should be saved, the crew engaged on wages, including the If death occurred in the defense of the vessel, the seaman
captain, shall retain their rights on the salvage, so far as shall be considered as living, and his heirs shall be paid, at
they go, on the remainder of the vessel as well as on the the end of the voyage, the full amount of wages or the
amount of the freightage of the cargo saved; but sailors integral part of the profits which may be due him as to
who are engaged on shares shall not have any right others of his class.
whatsoever on the salvage of the hull, but only on the
portion of the freightage saved. If they should have In the same manner, the seaman captured while defending
worked to recover the remainder of the shipwrecked vessel the vessel shall be considered present so as to enjoy the
they shall be given from the amount of the salvage an same benefits as the rest; but should he have been
award in proportion of the efforts made and to the risks, captured on account of carelessness or other accident not
encountered in order to accomplish the salvage. related to the service, he shall only receive the wages due
up to the day of his capture.
ARTICLE 644.
ARTICLE 646.
A seaman who falls sick shall not lose his right to wages
during the voyage, unless the sickness is the result of his The vessel with her engines, rigging, equipment, and
own fault. At any rate, the costs of the attendance and cure freightage shall he liable for the wages earned by the crew
shall be defrayed from the common funds, in the form of a engaged per month or for the trip, the liquidation and
loan. payment to take place between one voyage and the other.
1. If, before beginning the voyage, the captain attempts to ARTICLE 651.
change it, or a naval war with the power to which the
vessel was destined occurs. Supercargoes may not, without special authorization or
agreement, make any transaction for their own account
2. If a disease should break out and be officially declared during the voyage, with the exception of the ventures
an epidemic in the port of destination. which, in accordance with the custom of the port of
destination, they are permitted to do.
3. If the vessel should change owner or captain.
Neither shall they be permitted to invest in the return trip
ARTICLE 648. more than the profits from the ventures, unless there is an
express authorization from the principals.
By the complement of a vessel shall be understood all the
persons on board, from the captain to the cabin boy, TITLE THREE
necessary for the management, maneuvers, and service,
and therefore, the complement shall include the crew, the SPECIAL CONTRACTS OF MARITIME
sailing mates, engineers, stokers and other employees on COMMERCE
board not having specific designations; but it shall not
include the passengers or the persons whom the vessel is SECTION ONE
transporting.
CHARTER PARTIES
SECTION FOUR
PART I
SUPERCARGOES
FORMS AND EFFECTS OF CHARTER PARTIES
ARTICLE 649.
ARTICLE 652.
Supercargoes shall discharge on board the vessel the
administrative duties which the ship agent or the shippers A charter party must be drawn in duplicate and signed by
may have assigned to them; they shall keep an account and the contracting parties, and when either does not know
record of their transactions in a book which shall have the how or is not able to do so, by two witnesses at his
same conditions and requisites as required for the request.
accounting book of the captain, and they shall respect the
The charter party shall contain, besides the conditions
latter in his capacity as chief of the vessel.
freely stipulated, the following circumstances:
The powers and responsibilities of the captain shall cease,
1. The kind, name, and tonnage of the vessel.
when there is a supercargo, with regard to that part of the
administration legitimately conferred upon the latter, but 2. Its flag and port of registry.
5. The name, surname, and domicile of the charterer; and If no broker has intervened in the charter party and the
if he states that he is acting by commission, that of the signatures are not acknowledged, doubts shall be decided
person for whose account he makes the contract. by what is provided for in the bill of lading and in the
absence thereof, by the proofs submitted by the parties.
6. The port of loading and unloading.
ARTICLE 655.
7. The capacity, number of tons or the weight or
measurement which they respectively bind themselves to Charter parties executed by the captain in the absence of
load and to transport, or whether the charter party is total. the ship agent shall be valid and effective, even though in
executing them he should have acted in violation of the
8. The freightage to be paid, stating whether it is to be a orders and instructions of the ship agent or shipowner; but
fixed amount for the voyage or so much per month, or for the latter shall have a right of action against the captain for
the space to be occupied, or for the weight or measure of indemnification of damages.
the goods of which the cargo consists, or in any other
manner whatsoever agreed upon. ARTICLE 656.
9. The amount of primage to be paid to the captain. If in the charter party the time in which the loading and
unloading are to take place is not stated, the usages of the
10. The days agreed upon for loading and unloading. port where these acts take place shall be observed. After
the stipulated or the customary period has passed, and
11. The lay days and extra lay days to be allowed and the
there is no express proviso in the charter party fixing the
demurrage to be paid for each of them.
indemnity for the delay, the captain shall be entitled to
ARTICLE 653. demand demurrage for the lay days and extra lay days
which may have elapsed in loading and unloading.
If the cargo should be received without the charter party
having been signed, the contract shall be understood as ARTICLE 657.
executed in accordance with what appears in the bill of
If during the voyage the vessel should be rendered
lading, the sole evidence of title with regard to the cargo
unseaworthy, the captain shall be obliged to charter at his
for determining the rights and obligations of the ship
expense another one in good condition to receive the
agent, of the captain, and of the charterer.
cargo and carry it to its destination, for which purpose he
ARTICLE 654. shall be obliged to look for a vessel not only at the port of
arrival but also in the neighborhood within distance of 150
The charter parties executed with the intervention of a kilometers.
broker, who certifies to the authenticity of the signatures
of the contracting parties because they were signed in his If the captain, through indolence or malice, should not
presence, shall be full evidence in court; and if they should furnish a vessel to its destination, the shippers, after
be conflicting, that which accords with one which the requiring the captain to charter a vessel within an
broker must keep in his registry, if kept in accordance with inextendible period, may charter one and petition the
law, shall govern. judicial authority to summarily approve the charter party
which they may have made.
The freightage shall accrue according to the conditions Neither merchandise lost by reason of shipwreck or
stipulated in the contract, and should they not be stranding nor those seized by the pirates or enemies, shall
expressed, or should they be ambiguous, the following pay freightage.
rules shall be observed:
If the freightage should have been paid in advance, it shall
1. If the vessel has been chartered by months or by days, be returned, unless there is an agreement to the contrary.
the freightage shall begin to run from the day the loading
of the vessel is begun. ARTICLE 662.
2. In charters made for a fixed period, the freightage shall If the vessel or the merchandise should be redeemed, or
begin to run from that very day. the effects of the shipwreck be salvaged, the freightage
corresponding to the distance covered by the vessel
3. If the freightage is charged according to weight, the transporting the cargo shall be paid; and should the vessel,
payment shall be made according to gross weight, after being repaired, transport said merchandise to the port
including the containers, such as barrels or any other of destination, the full freightage shall be paid, without
objects in which the cargo is contained. prejudice to what may be due by reason of the average.
The merchandise sold by the captain to pay for the Merchandise which suffer deterioration or diminutions on
necessary repairs to the hull, machinery or equipment, or account of inherent defects or bad quality and condition of
for unavoidable and urgent needs, shall pay freightage. the packing, or because of fortuitous event, shall pay
freightage in full and as stipulated in the charter party.
The price of this merchandise shall be fixed according to
the result of the voyage, namely: ARTICLE 664.
1. If the vessel should arrive safely at the port of The natural increase in weight or size of the merchandise
destination, the captain shall pay the price which the sale loaded on the vessel shall accrue to the benefit of the
of merchandise of the same kind brings at that port. owner, and shall pay the proper freightage fixed in the
contract for the same.
2. If the vessel should be lost, the captain shall pay the
price realized from said merchandise in the sale.
The cargo shall be specially liable for the payment of the RIGHTS AND OBLIGATIONS OF SHIPOWNERS
freightage, expenses and duties arising therefrom, which
must be reimbursed by the shippers, as well as for the part ARTICLE 669.
of the general average which may correspond to it; but it
shall not be legal for the captain to delay unloading on The shipowner or the captain shall observe in charter
account of suspicion that this obligation may not be parties the capacity of the vessel or that expressly
complied with. Should there be reasons for distrust, the designated in its registry, a difference greater than 2 per
judge or court, at the instance of the captain, may order cent between that stated and her true capacity not being
the deposit of the merchandise until he has been paid in permissible.
full.
If the shipowner or the captain should contract to carry a
ARTICLE 666. greater amount of cargo than the vessel can carry in view
of her tonnage, they shall indemnify the shippers whose
The captain may request the sale of the cargo to the contracts they do not fulfill for the losses they may have
amount necessary to pay the freightage, expenses, and caused when by reason of their default, according to the
averages due him, reserving the right to demand the following cases, viz:
balance due him therefor if the proceeds of the sale should
not suffice to cover his credit. If the vessel has been chartered by one shipper only, and
there should appear to be an error or fraud in her capacity,
ARTICLE 667. and the charterer should not wish to rescind the contract,
when he has a right to do so, the freightage shall he
The goods loaded shall be liable in the first place for the reduced in proportion to the cargo which the vessel can
freight and expenses thereof during twenty days, to be not receive, the person from whom the vessel is chartered
counted from the date of their delivery or deposit. During being furthermore obliged to indemnify the charterer for
this period, the sale of the same may be requested, even the losses he may have caused him.
though there be other creditors and the bankruptcy of the
shipper or consignee should occur. If, on the contrary there should be several charter parties,
and by reason of want of space all the cargo contracted for
This right may not he made use of, however, on the goods cannot be loaded, and none of the charterers desires to
which, after being delivered, were turned over to a third rescind the contract, preference shall be given to the
person without malice on the part of the latter and for a person who has already loaded and arranged the freight in
valuable consideration. the vessel, and the rest shall take the places corresponding
to them in the order of the dates of their contracts.
ARTICLE 668.
Should there be no priority, the charterers may load, if they
If the consignee should not be found or should refuse to wish, in proportion to the amounts of weight or space for
receive the cargo, the judge or court, at the instance of the which each may have contracted, and the person from
captain, shall order its deposit and the sale of what may be whom the vessel was chartered shall he obliged to
necessary to pay the freightage and other expenses on the indemnify them for losses and damages.
same.
ARTICLE 670.
The sale shall likewise be allowed when the goods
deposited run the risk of deteriorating, or by reason of If the person from whom the vessel is chartered, after
their condition or other circumstances the expenses of receiving a part of the freight, should not find sufficient to
preservation and custody should be disproportionate. make up at least three-fifths of the amount which the
If the owner of the part of the freight already loaded In the same manner, the captain may, before leaving the
should procure some more at the same price and under port, unload merchandise clandestinely placed on board, or
similar or proportionate conditions to those accepted for transport them, if he can do so with the vessel in trim,
the freight received, the person from whom the vessel is demanding by way of freightage the highest price which
chartered or the captain cannot refuse to accept the rest of may have been stipulated for said voyage.
the cargo; and should he do so, the shipper shall have a
right to demand that the vessel put to sea with the cargo ARTICLE 675.
which it may have on board.
If the vessel has been chartered to receive the cargo in
ARTICLE 671. another port, the captain shall appear before the consignee
designated in the charter party; and, should the latter not
After three-fifths of the vessel has been loaded, the person deliver the cargo to him, he shall inform the charterer and
from whom she is chartered may not, without the consent wait his instructions, the lay days agreed upon or those
of the charterers or shippers, substitute the vessel allowed by custom in the port beginning to run in the
designated in the charter party by another one, under the meantime, unless there is an express, agreement to the
penalty of making himself thereby liable for all the losses contrary.
and damages occurring during the voyage to the cargo of
those who did not consent to the change. Should the captain not receive an answer within the time
necessary therefor, he shall make efforts to find freight;
ARTICLE 672. and should he not find any after the lay days and extra lay
days have elapsed, he shall make a protest and return to
If the vessel has been chartered in whole, the captain may the port where the charter was made.
not, without the consent of the charterer, accept cargo
from any other person; and should he do so, said charterer The charterer shall pay the freightage in full, discounting
may oblige him to unload it and to indemnify him for the that which may have been earned on the merchandise
losses suffered thereby. which may have been carried on the voyage out or on the
return trip, if carried for the account of third persons.
ARTICLE 673.
The same shall be done if a vessel, having been chartered
The person from whom the vessel is chartered shall he for the round trip, should not be given any cargo on its
liable for all the losses caused to the charterer by reason of return.
the voluntary delay of the captain in putting to sea,
according to the rules prescribed, provided he has been ARTICLE 676.
requested, notarially or judicially, to put to sea at the
proper time. 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
If the time necessary, in the opinion of the judge or court, If the merchandise should have been shipped for the
to receive the orders of the shipper should have elapse, purpose of illicit commerce, and were taken on board with
without the captain having received any instructions, the the knowledge of the person from whom the vessel was
cargo shall be deposited, and it shall be liable for the chartered or of the captain, the latter, jointly with the
payment of the freightage and expenses on its account owner of the same, shall be liable for all the losses which
during the delay, which shall be paid from the proceeds of may be caused the other shippers; and even though it may
the part first sold. have been stipulated, they cannot demand any indemnity
whatsoever from the charterer for the damaged caused to
PART 3 the vessel.
OBLIGATIONS OF CHARTERERS ARTICLE 683.
ARTICLE 679. In case of making a port to repair the hull, machinery, or
equipment of the vessel, the shippers must await until the
The charterer of an entire vessel may sub-charter the
vessel is repaired, being permitted to unload it at their own
whole or part thereof on such terms as he may consider
expense should they deem it proper.
most convenient, the captain not being allowed to refuse
to receive on board the freight delivered by the second If, for the benefit of the cargo subject to deterioration, the
charterers, provided that the conditions of the first charter shippers or the court, or the consul, or the competent
are not change, and that the price agreed upon is paid in authority in a foreign country, should order the
full to the person from whom the vessel is chartered, even merchandise to be unloaded, the expenses of unloading
though the full cargo is not embarked, with the limitation and reloading shall be for the account of the former.
established in the next article.
ARTICLE 684.
ARTICLE 680.
If the charterer, without the occurrence of any of the cases
A charterer who does not complete the full cargo he of force majeure mentioned in the foregoing article, should
bound himself to ship shall pay the freightage of the wish to unload his merchandise before arriving at the port
amount he fails to ship, if the captain does not take other
Aimee Nono Calo [Transportation Law] Page 30
of destination, he shall pay the full freightage, the expenses be an error in the statement of the flag under which she
of the arrival made at his request, and the losses and sails.
damages caused the other shippers, should there be any.
2. If the vessel should not be placed at the disposal of the
ARTICLE 685. charterer within the period and in the manner agreed
upon.
In charters for transportation of general freight, any of the
shippers may unload the merchandise before the beginning 3. If after the vessel has put to sea, she should return to the
of the voyage, paying one-half of the freightage, the port of departure, on account of risk from pirates,
expense of stowing and restowing the cargo, and any other enemies, or bad weather, and the shippers should agree to
damage which for his reason he may cause the other unload her.
shippers.
In the second and third cases the person from whom the
ARTICLE 686. vessel was chartered shall indemnify the charterer for the
voyage out.
After the vessel has been unloaded and the cargo placed at
the disposal of the consignee, the latter must immediately 4. If the charter should have been made by the months, the
pay the captain the freightage due and the other expenses charterers shall pay the full freightage for one month, if the
for which said cargo may be liable. voyage is for a port in the same waters, and for two
months, if for a port in different waters.
The primage must be paid in the same proportion and at
the same time as the freightage, all the changes and From one port to another of the Philippines and adjacent
modifications to which the latter should be subject also islands, the freightage for one month only shall be paid.
governing the former.
5. If the vessel should make a port during the voyage in
ARTICLE 687. order to make urgent repairs, and the charterers should
prefer to dispose of the merchandise.
The charterers and shippers may not abandon merchandise
damaged on account of inherent defect or fortuitous event, When the delay does not exceed thirty days, the shippers
for the payment of the freightage and other expenses. shall pay the full freightage for the voyage out.
The abandonment shall be proper, however, if the cargo Should the delay exceed thirty days, they shall only pay the
should consist of liquids and they have leaked out, nothing freightage in proportion to the distance covered by the
remaining in the containers but one-fourth part of their vessel.
contents.
ARTICLE 689.
PART 4
At the request of the person from whom the vessel is
TOTAL OR PARTIAL RESCISSION OF chartered the charter party may be rescinded:
CHARTER PARTIES
1. If the charterer, at the termination of the extra lay days,
ARTICLE 688. does not place the cargo alongside the vessel.
A charter party may be rescinded at the request of the In such case the charterer must pay half the freight
charterer: stipulated, besides the demurrage due for the lay days and
extra lay days.
1. If before loading the vessel he should not agree with
that stated in the certificate of tonnage, or if there should
2. A condition of blockade of the port of destination of If the passage price has not been agreed upon, the judge or
said vessel, or the breaking out of an epidemic after the court shall summarily fix it, after a declaration of experts.
contract was executed.
ARTICLE 694.
3. The prohibition to receive at the said port the
merchandise constituting the cargo of the vessel. Should the passenger not arrive on board at the time fixed,
or should leave the vessel without permission from the
4. An indefinite detention, by reason of an embargo of the captain when the latter is ready to leave the port, the
vessel by order of the government, or for any other reason captain may continue the voyage and demand the full
independent of the will of the ship agent. passage price.
If the vessel cannot put to sea on account of the closing of If before beginning the voyage the passenger should die,
the port of departure or any other temporary cause, the his heirs shall only be obliged to pay half of the fare agreed
charter shall remain in force, with neither one of the upon.
contracting parties having a right to claim damages.
In case of the death of a passenger during the voyage, the Four true copies of the original bill of lading shall be made,
captain shall be authorized, with regard to the body, to and all of them shall be signed by the captain and the
take the steps required by the circumstances, and shall shipper. Of these, the shipper shall keep one and send
carefully take care of the papers and goods which may be another to the consignee; the captain shall take two, one
on board belonging to the passenger, observing the for himself and another for the ship agent.
provisions of case No. 10 of Article 612 with regard to
members of the crew. There may also be drawn up as many copies of the bill of
lading as may be considered necessary by the person
PART 6 interested; but when they are issued to order or to bearer,
they shall be stated in all the copies, be they the first four
BILLS OF LADING or the subsequent ones, the destination of each one, stating
whether it is for the agent, for the captain, for the shipper,
ARTICLE 706. or for the consignee. If the copy sent to the latter should
have a duplicate, this circumstance and the fact that it is
The captain of the vessel and the shipper shall have the
not valid except in default of the first one must be stated
obligation of drawing up
therein.
the bill of lading in which shall be stated:
ARTICLE 708.
1. The name, registry, and tonnage of the vessel.
Bills of lading issued to bearer and sent to the consignee
2. The name of the captain and his domicile. shall be transferable by actual delivery of the instrument;
and those issued to order, by virtue of an indorsement.
3. The port of loading and that of unloading.
In either case, the person to whom the bill of lading is
4. The name of the shipper. transferred shall acquire all the rights and actions of the
transferor or indorser with regard to the merchandise
5. The name of the consignee, if the bill of lading is issued mentioned in the same.
in the name of a specified person.
ARTICLE 709.
6. The quantity, quality, number of packages and marks of
the merchandise. A bill of lading drawn up in accordance with the
provisions of this title shall be proof as between all those
7. The freightage and the primage stipulated. interested in the cargo and between the latter and the
insurers, proof to the contrary being reserved for the latter.
The bill of lading may be issued to bearer, to order, or in
the name of a specified person, and must be signed within ARTICLE 710.
twenty-four hours after the cargo has been received on
board, the shipper being entitled to demand the unloading If the bills of lading do not agree, and no change or erasure
at the expense of the captain should the latter not sign it, can be observed in any of them, those possessed by the
and, in every case, the losses and damages suffered shipper or consignee signed by the captain shall be proof
thereby. 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.
The legitimate holder of a bill of lading who fails to Bills of lading will give rise to a most summary action or to
present it to the captain of the vessel before the unloading judicial, compulsion ("accion sumarisima o de apremios"),
obliging the latter thereby to unload it and place it in according to the case, for the delivery of the cargo and the
deposit, shall be responsible for the expenses of
warehousing and other expenses arising therefrom. payment of the freightage and the expenses thereby
incurred.
ARTICLE 712.
ARTICLE 716.
The captain may not by himself change the destination of
the merchandise. In admitting this change at the instance If several persons should present bills of lading issued to
of the shipper, he must first take up the bill of lading bearer or to order, indorsed in their favor, demanding the
which he may have issued, under pain of being liable for same merchandise, the captain shall prefer, in making
the cargo to the legitimate holder of the same. delivery the person who presents the copy first issued,
except when the latter one was issued on proof of the loss
ARTICLE 713.
of the first, and both are presented by different persons.
If before the delivery of the cargo a new bill of lading
should be demanded of the captain, on the allegation that In such case, as well as when only second subsequent
the failure to present the previous ones is due to their loss copies, issued without this proof, are presented, the
or to any other just cause, he shall be obliged to issue it, captain shall apply to the judge or court, so that he may
provided that security for the value of the cargo is given to order the deposit of the merchandise and their delivery,
his satisfaction, but without changing the consignment, through him, to the proper person.
and stating therein the circumstances prescribed in the last
paragraph of Article 707, under penalty, should he not so ARTICLE 717.
state, of being held liable for said cargo if improperly
The delivery of the bill of lading shall effect the
delivered through his fault.
cancellation of all the provisional receipts of prior date
ARTICLE 714. given by the captain or his subordinates for partial
deliveries of the cargo which may have been made.
If before the vessel puts to sea the captain should die or
should cease to hold his position through any cause, the ARTICLE 718.
shippers shall have the right to demand of the new captain
After the cargo has been delivered the bill of lading which
the ratification of the first bills of lading, and the latter
the captain signed, or at least the copy by reason of which
must do so, provided that all the copies previously issued
the delivery is made, shall be returned to him, with the
be presented or returned to him, and it should appear from
receipt for the merchandise mentioned therein.
all examination of the cargo that they are correct.
The delay on the part of the consignee shall make him
The expenses arising from the examination of the cargo
liable for the damages which such delay may cause the
shall be defrayed by the ship agent, without prejudice to
captain.
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.
ARTICLE 719. Contracts which are not reduced to writing shall not give
rise to judicial action.
A loan in which under any condition whatever, the
repayment of the sum loaned and of the premium ARTICLE 721.
stipulated depends upon the safe arrival in port of the
goods on which it is made, or of the price they may receive In a contract on bottomry or respondentia the following
in case of accident, shall be considered a loan on bottomry must be stated:
or respondentia.
1. The kind, name, and registry of the vessel.
ARTICLE 720.
2. The name, surname, and domicile of the captain.
Loans on bottomry or respondentia may be executed:
3. The names, surnames, and domiciles of the person
1. By means of a public instrument. giving and the person receiving the loan.
2. By means of a policy signed by the contracting parties 4. The amount of the loan and the premium stipulated.
and the broker taking part therein.
5. The time for repayment.
3. By means of a private instrument.
6. The goods pledged to secure repayment.
Under whichever of these forms the contract is executed,
it shall be entered in the certificate of the registry of the 7. The voyage during which the risk is run.
vessel and shall be recorded in the registry of vessels,
without which requisites the credits of this kind shall not ARTICLE 722.
have, with regard to other credits, the preference which,
The contract may be made to order, in which case they
according to their nature, they should have, although the
shall be transferable by indorsement, and the indorsee shall
obligation shall be valid between the contracting parties.
acquire all the rights and shall incur all the risks
The contracts made during a voyage shall be governed by corresponding to the indorser.
the provisions of Articles 583 and 611, and shall be
ARTICLE 723.
effective with regard to third persons from the date of
their execution, if they should be recorded in the registry Loans may be made in goods and in merchandise, fixing
of vessels of the port of registry of the vessel before the their value in order to determine the principal of the loan.
lapse of eight days following its arrival. If said eight days
should elapse without the record having been made in the ARTICLE 724.
corresponding registry, the contracts made during the The loans may be constituted jointly or separately:
voyage of a vessel shall produce no effect with regard to
third persons, except from the day and date of their 1. On the hull of the vessel.
inscription.
2. On the rigging.
In order that the policy of the contracts executed in
accordance with No. 2 may have binding force, they must 3. On the equipment, provisions, and fuel.
conform to the registry of the broker who took part
The surplus principal shall be returned with legal interests Should several loans have been made at the same port of
for the entire time required for repayment. arrival under stress and for the same purpose, all of them
shall be paid pro rata.
ARTICLE 727.
ARTICLE 731.
If the full amount of the loan contracted in order to load
the vessel should not be used for the cargo, the balance The actions pertaining to the lender shall be extinguished
shall be returned before clearing. by the absolute loss of the goods on which the loan was
made, if it arose from an accident of the sea at the time
The same procedure shall be observed with regard to the and during the voyage designated in the contract, and it is
goods taken as loan, if they were not loaded. proven that the cargo was on board; but this shall not take
ARTICLE 728. place if the loss was caused by the inherent defect of the
thing, or through the fault or malice, of the borrower, or
The loan which the captain takes at the point of residence
barratry on the part of the captain, or if it was caused by
of the owners of the vessel shall only affect that part
damages suffered by the vessel as a consequence of being
thereof which belongs to the captain, if the other owners
engaged in contraband, or if it arose from having loaded
or their agents should not have given their express
the merchandise on a vessel different from that designated
authorization therefor or should not have taken part in the
transaction.
2. This Convention does not apply to carriage performed 3. The luggage ticket shall contain the following
under the terms of any international postal Convention. particulars:
Section I - Passenger Ticket (c) the name and address of the carrier or carriers;
1. For the carriage of passengers the carrier must deliver (e) a statement that delivery of the luggage will be made
a passenger ticket which shall contain the following to the bearer of the luggage ticket;
particulars:
(f) the number and weight of the packages;
(a) the place and date of issue;
(g) the amount of the value declared in accordance with
(b) the place of departure and of destination; Article 22(2);
(c) the agreed stopping places, provided that the carrier (h) a statement that the carriage is subject to the rules
may reserve the right to alter the stopping places in case of relating to liability established by this Convention.
necessity, and that if he exercises that right, the alteration
shall not have the effect of depriving the carriage of its 4. The absence, irregularity or loss of the luggage ticket
international character; does not affect the existence or the validity of the contract
of carriage, which shall none the less be subject to the rules
(d) the name and address of the carrier or carriers; of this Convention. Nevertheless, if the carrier accepts
luggage without a luggage ticket having been delivered, or
(e) a statement that the carriage is subject to the rules if the luggage ticket does not contain the particulars set out
relating to liability established by this Convention. at (d), (f) and (h) above, the carrier shall not be entitled to
avail himself of those provisions of the Convention which
2. The absence, irregularity or loss of the passenger ticket
exclude or limit his liability.
does not affect the existence or the validity of the contract
of carriage, which shall none the less be subject to the rules
of this Convention. Nevertheless, if the carrier accepts a
passenger without a passenger ticket having been delivered
he shall not be entitled to avail himself of those provisions
of this Convention which exclude or limit his liability.
1. Every carrier of goods has the right to require the (c) the agreed stopping places, provided that the carrier
consignor to make out and hand over to him a document may reserve the right to alter the stopping places in case of
called an "air consignment note"; every consignor has the necessity, and that if he exercises that right the alteration
right to require the carrier to accept this document. shall not have the effect of depriving the carriage of its
international character;
2. The absence, irregularity or loss of this document does
not affect the existence or the validity of the contract of (d) the name and address of the consignor;
carriage which shall, subject to the provisions of Article 9,
be none the less governed by the rules of this Convention. (e) the name and address of the first carrier;
Article 6 (f) the name and address of the consignee, if the case so
requires;
1. The air consignment note shall be made out by the
consignor in three original parts and be handed over with (g) the nature of the goods;
the goods.
(h) the number of the packages, the method of packing
2. The first part shall be marked "for the carrier," and shall and the particular marks or numbers upon them;
be signed by the consignor. The second part shall be
marked "for the consignee"; it shall be signed by the (i) the weight, the quantity and the volume or dimensions
consignor and by the carrier and shall accompany the of the goods;
goods. The third part shall be signed by the carrier and
(j) the apparent condition of the goods and of the packing;
handed by him to the consignor after the goods have been
accepted. (k) the freight, if it has been agreed upon, the date and
place of payment, and the person who is to pay it;
3. The carrier shall sign on acceptance of the goods.
(l) if the goods are sent for payment on delivery, the price
4. The signature of the carrier may be stamped; that of the of the goods, and, if the case so requires, the amount of
consignor may be printed or stamped. the expenses incurred;
5. If, at the request of the consignor, the carrier makes out (m) the amount of the value declared in accordance with
the air consignment note, he shall be deemed, subject to Article 22 (2);
proof to the contrary, to have done so on behalf of the
consignor. (n) the number of parts of the air consignment note;
2. The statements in the air consignment note relating to 1. Except in the circumstances set out in the preceding
the weight, dimensions and packing of the goods, as well Article, the consignee is entitled, on arrival of the goods at
as those relating to the number of packages, are prima the place of destination, to require the carrier to hand over
facie evidence of the facts stated; those relating to the to him the air consignment note and to deliver the goods
quantity, volume and condition of the goods do not to him, on payment of the charges due and on complying
constitute evidence against the carrier except so far as they with the conditions of carriage set out in the air
both have been, and are stated in the air consignment note consignment note.
to have been, checked by him in the presence of the
consignor, or relate to the apparent condition of the 2. Unless it is otherwise agreed, it is the duty of the carrier
goods. to give notice to the consignee as soon as the goods arrive.
Article 18 Article 22
1. The carrier is liable for damage sustained in the event of 1. In the carriage of passengers the liability of the carrier
the destruction or loss of, or of damage to, any registered for each passenger is limited to the sum of 125,000 francs.
luggage or any goods, if the occurrence which caused the Where, in accordance with the law of the Court seised of
damage so sustained took place during the carriage by air. the case, damages may be awarded in the form of
periodical payments, the equivalent capital value of the said
payments shall not exceed 125,000 francs. Nevertheless, by
Aimee Nono Calo [Transportation Law] Page 42
special contract, the carrier and the passenger may agree to of the Court seised of the case, is considered to be
a higher limit of liability. equivalent to wilful misconduct.
2. In the carriage of registered luggage and of goods, the 2. Similarly the carrier shall not be entitled to avail himself
liability of the carrier is limited to a sum of 250 francs per of the said provisions, if the damage is caused as aforesaid
kilogram, unless the consignor has made, at the time when by any agent of the carrier acting within the scope of his
the package was handed over to the carrier, a special employment.
declaration of the value at delivery and has paid a
Article 26
supplementary sum if the case so requires. In that case the
carrier will be liable to pay a sum not exceeding the
1. Receipt by the person entitled to delivery of luggage or
declared sum, unless he proves that that sum is greater
goods without complaint is prima facie evidence that the
than the actual value to the consignor at delivery.
same have been delivered in good condition and in
accordance with the document of carriage.
3. As regards objects of which the passenger takes charge
himself the liability of the carrier is limited to 5,000 francs
2. In the case of damage, the person entitled to delivery
per passenger.
must complain to the carrier forthwith after the discovery
of the damage, and, at the latest, within three days from
4. The sums mentioned above shall be deemed to refer to
the date of receipt in the case of luggage and seven days
the French franc consisting of 65 ½ milligrams gold of
from the date of receipt in the case of goods. In the case of
millesimal fineness 900. These sums may be converted into
delay the complaint must be made at the latest within
any national currency in round figures.
fourteen days from the date on which the luggage or goods
Article 23 have been placed at his disposal.
Any provision tending to relieve the carrier of liability or to 3. Every complaint must be made in writing upon the
fix a lower limit than that which is laid down in this document of carriage or by separate notice in writing
Convention shall be null and void, but the nullity of any despatched within the times aforesaid.
such provision does not involve the nullity of the whole
contract, which shall remain subject to the provisions of 4. Failing complaint within the times aforesaid, no action
this Convention. shall lie against the carrier, save in the case of fraud on his
part.
Article 24
Article 27
1. In the cases covered by Articles 18 and 19 any action for
In the case of the death of the person liable, an action for
damages, however founded, can only be brought subject to
damages lies in accordance with the terms of this
the conditions and limits set out in this Convention.
Convention against those legally representing his estate.
2. In the cases covered by Article 17 the provisions of the
Article 28
preceding paragraph also apply, without prejudice to the
questions as to who are the persons who have the right to
1. An action for damages must be brought, at the option of
bring suit and what are their respective rights.
the plaintiff, in the territory of one of the High
Contracting Parties, either before the Court having
Article 25
jurisdiction where the carrier is ordinarily resident, or has
1. The carrier shall not be entitled to avail himself of the his principal place of business, or has an establishment by
provisions of this Convention which exclude or limit his which the contract has been made or before the Court
liability, if the damage is caused by his wilful misconduct or having jurisdiction at the place of destination.
by such default on his part as, in accordance with the law
(c) The term "goods" includes goods, wares, merchandise, (a) The leading marks necessary for identification of
and articles of every kind whatsoever, except live animals the goods as the same are furnished in writing by the
and cargo which by the contract of carriage is stated as shipper before the loading of such goods starts, provided
being carried on deck and is so carried. such marks are stamped or otherwise shown clearly upon
the goods if uncovered, or on the cases or coverings in
(d) The term "ship" means any vessel used for the carriage which such goods are contained, in such a manner as
of goods by sea. should ordinarily remain legible until the end of the
voyage.
(e) The term "carriage of goods" covers the period from
the time when the goods are loaded on to the time when (b) Either the number of packages or pieces, or the
they are discharged from the ship. quantity or weight, as the case may be, as furnished in
writing by the shipper.
RISKS
(c) The apparent order and condition of the goods:
Section 2. Provided, That no carrier, master, or agent of the carrier,
shall be bound to state or show in the bill of lading any
Subject to the provisions of section 6, under every contract marks, number, quantity, or weight which he has
of carriage of goods by sea, the carrier in relation to the reasonable ground for suspecting not accurately to
loading handling, stowage, carriage, custody, care, and represent the goods actually received, or which he has had
discharge of such goods, shall be subject to the no reasonable means of checking.
responsibilities and liabilities and entitled to the rights and
immunities hereinafter set forth. (4) Such a bill of lading shall be prima facie evidence of the
receipt by the carrier of the goods as therein described in
RESPONSIBILITIES AND LIABILITIES accordance with paragraphs (3) (a), (b), and (c) of this
section: Provided, That nothing in this Act shall be
Section 3.
construed as repealing or limiting the application of any
(1) The carrier shall be bound, before and at the beginning part of the Act, as amended, entitled "An Act relating to
of the voyage, to exercise due diligence to — bills of lading in interstate and foreign commerce,"
approved August 29, 1916 (U. S. C. title 49, secs. 81-124),
(a) Make the ship seaworthy; commonly known as the "Pomerene Bills of Lading Act."
(b) Properly man, equip, and supply the ship; (5) The shipper shall be deemed to have guaranteed to the
carrier the accuracy at the time of shipment of the marks,
(c) Make the holds, refrigerating and cooling number, quantity, and weight, as furnished by him; and the
chambers, and all other parts of the ship in which goods shipper shall indemnify the carrier against all loss damages,
are carried, fit and safe for their reception carriage and and expenses arising or resulting from inaccuracies in such
preservation. particulars. The right of the carrier to such indemnity shall
in no way limit his responsibility and liability under the
In the case of any actual or apprehended loss or damage (2) Neither the carrier nor the ship shall be responsible for
the carrier and the receiver shall give all reasonable loss or damage arising or resulting from —
facilities to each other for inspecting and tallying the
goods. (a) Act, neglect, or default of the master, mariner,
pilot, or the servants of the carrier in the navigation or in
(7) After the goods are loaded the bill of lading to be the management of the ship;
issued by the carrier, master, or agent of the carrier to the
shipper shall, if the shipper so demands, be a "shipped" bill (b) Fire, unless caused by the actual fault or privity
of lading Provided, That if the shipper shall have of the carrier;
previously taken up any document of title to such goods,
he shall surrender the same as against the issue of the (c) Perils, dangers, and accidents of the sea or
"shipped" bill of lading, but at the option of the carrier other navigable waters;
such document of title may be noted at the port of
(d) Act of God;
shipment by the carrier, master, or agent with name or
name the names of the ship or ships upon which the goods
(o) Insufficiency of inadequacy of marks; Neither the carrier nor the ship shall be responsible in any
event for loss or damage to or in connection with the
(p) Latent defects not discoverable by due transportation of the goods if the nature or value thereof
diligence; and has been knowingly and fraudulently misstated by the
shipper in the bill of lading.
(q) Any other cause arising without the actual fault
and privity of the carrier and without the fault or neglect of (6) Goods of an inflammable, explosive, or dangerous
the agents or servants of the carrier, but the burden of nature to the shipment whereof the carrier, master or agent
proof shall be on the person claiming the benefit of this of the carrier, has not consented with knowledge of their
exception to show that neither the actual fault or privity of nature and character, may at any time before discharge be
the carrier nor the fault or neglect of the agents or servants landed at any place or destroyed or rendered innocuous by
of the carrier contributed to the loss or damage. the carrier without compensation, and the shipper of such
goods shall be liable for all damages and expenses directly
(3) The shipper shall not be responsible for loss or damage
or indirectly arising out of or resulting from such
sustained by the carrier or the ship arising from any cause
shipment. If any such goods shipped with such knowledge
without the act, fault, or neglect of the shipper, his agents,
and consent shall become a danger to the ship or cargo,
or servants.
they may in like manner be landed at any place, or
destroyed or rendered innocuous by the carrier without
Any agreement so entered into shall have full legal effect: Section 10.
Provided, That this section shall not apply to ordinary
commercial shipments made in the ordinary course of Section 25 of the Interstate Commerce Act is hereby
trade but only to other shipments where the character or amended by adding the following proviso at the end of
condition of the property to be carried or the paragraph 4 thereof: "Provided, however, That insofar as
(d) Radio companies except with respect to the fixing of Proceedings of the Commission, upon notice and hearing.
rates; - The Commission shall have power, upon proper notice
and hearing in accordance with the rules and provisions of
(e) Public services owned or operated by any this Act, subject to the limitations and exceptions
instrumentality of the National Government or by any mentioned and saving provisions to the contrary :
government-owned or controlled corporation, except with
respect to the fixing of rates. (As amended by Com. Act (a) To issue certificates which shall be known as
454, RA No. 2031, and RA No. 2677 ) certificates of public convenience, authorizing the
operation of public service within the Philippines
Section 15. whenever the Commission finds that the operation of the
public service proposed and the authorization to do
With the exception of those enumerated in the preceding business will promote the public interest in a proper and
section, no public service shall operate in the Philippines suitable manner. Provided, That thereafter, certificates of
without possessing a valid and subsisting certificate from public convenience and certificates of public convenience
the Public Service Commission known as "certificate of and necessity will be granted only to citizens of the
public convenience," or "certificate of public convenience Philippines or of the United States or to corporations, co-
and necessity," as the case may be, to the effect that the partnerships, associations or joint-stock companies
operation of said service and the authorization to do constituted and organized under the laws of the
business will promote the public interests in a proper and Philippines; Provided, That sixty per centum of the stock
suitable manner. or paid-up capital of any such corporations, co-
partnership, association or joint-stock company must
The Commission may prescribe as a condition for the
belong entirely to citizens of the Philippines or of the
issuance of the certificate provided in the preceding
United States: Provided, further, That no such certificates
paragraph that the service can be acquired by the Republic
shall be issued for a period of more than fifty years.
of the Philippines or any instrumentality thereof upon
payment of the cost price of its useful equipment, less (b) To approve, subject to constitutional
reasonable depreciation; and likewise, that the certificate limitations any franchise or privilege granted under the
shall be valid only for a definite period of time; and that provisions of Act No. Six Hundred and Sixty-seven, as
the violation of any of these conditions shall produce the amended by Act No. One Thousand and twenty-two, by
immediate cancellation of the certificate without the any political subdivision of the Philippines when, in the
necessity of any express action on the part of the judgment of the Commission, such franchise or privilege
Commission. will properly conserve the public interests, and the
Commission shall in so approving impose such conditions
In estimating the depreciation, the effect of the use of the
as to construction, equipment, maintenance, service, or
equipment, its actual condition, the age of the model, or
operation as the public interests and convenience may
other circumstances affecting its value in the market shall
reasonably require, and to issue certificates of public
be taken into consideration.
convenience and necessity when such is required or
The foregoing is likewise applicable to any extension or provided by any law or franchise.
amendment of certificates actually in force and to those
(c) To fix and determine individual or joint rates,
which may hereafter be issued, to permit to modify
tolls, charges, classifications, or schedules thereof, as well
Aimee Nono Calo [Transportation Law] Page 57
as commutation, mileage, kilometrage, and other special (i) To direct any railroad, street railway or traction
rates which shall be imposed observed and followed company to establish and maintain at any junction or point
thereafter by any public service: Provided, That the of connection or intersection with any other line of said
Commission may, in its discretion, approve rates proposed road or track, or with any other line of any other railroad,
by public services provisionally and without necessity of street railway or traction to promote, such just and
any hearing; but it shall call a hearing thereon within thirty reasonable connection as shall be necessary to promote the
days, thereafter, upon publication and notice to the convenience of shippers of property, or of passengers, and
concerns operating in the territory affected: Provided, in like manner direct any railroad, street railway, or traction
further, That in case the public service equipment of an company engaged in carrying merchandise, to construct,
operator is used principally or secondarily for the maintain and operate, upon reasonable terms, a switch
promotion of a private business, the net profits of said connection with any private sidetrack which may be
private business shall be considered in relation with the constructed by any shipper to connect with the railroad,
public service of such operator for the purpose of fixing street railway or traction company line where, in the
the rates. judgment of the Commission, such connection is
reasonable and practicable and can be out in with safety
(d) To fix just and reasonable standards, and will furnish sufficient business to justify the
classifications, regulations, practices, measurement, or construction and maintenance of the same.
service to be furnished, imposed, observed, and followed
thereafter by any public service. (j) To authorize, in its discretion, any railroad,
street railway or traction company to lay its tracks across
(e) To ascertain and fix adequate and serviceable the tracks of any other railroad, street railway or traction
standards for the measurement of quantity, quality, company or across any public highway.
pressure, initial voltage, or other condition pertaining to
the supply of the product or service rendered by any public (k) To direct any railroad or street railway
service, and to prescribe reasonable regulations for the company to install such safety devices or about such other
examination and test of such product or service and for reasonable measures as may in the judgment of the
the measurement thereof. Commission be necessary for the protection of the public
are passing grade crossing of (1) public highways and
(f) To establish reasonable rules, regulations, railroads, (2) public highways and streets railway, or (3)
instructions, specifications, and standards, to secure the railways and street railways.
accuracy of all meters and appliances for measurements.
(l) To fix and determine proper and adequate rates
(g) To compel any public service to furnish safe, of depreciation of the property of any public service which
adequate, and proper service as regards the manner of will be observed in a proper and adequate depreciation
furnishing the same as well as the maintenance of the account to be carried for the protection of stockholders,
necessary material and equipment. bondholders or creditors in accordance with such rules,
regulations, and form of account as the Commission may
(h) To require any public service to establish, prescribe. Said rates shall be sufficient to provide the
construct, maintain, and operate any reasonable extension amounts required over and above the expense of
of its existing facilities, where in the judgment of said maintenance to keep such property in a state of efficiency
Commission, such extension is reasonable and practicable corresponding to the progress of the industry. Each public
and will furnish sufficient business to justify the service shall conform its depreciation accounts to the rates
construction and maintenance of the same and when the so determined and fixed, and shall set aside the moneys so
financial condition of the said public service reasonably provided for out of its earnings and carry the same in a
warrants the original expenditure required in making and depreciation fund. The income from investments of
operating such extension. money in such fund shall likewise be carried in such fund.
(6) The fact that a party is the lessee of a line does (b) Any person who shall neglect or refuse to answer any
not bar him from applying for a certificate of its own in lawful inquiry or produce the Commission books, paper,
the same line. Even in cases where the owner of a tariffs, contracts, agreements, and documents or other
certificate has sold it subject to the condition that he things called for by said Commission, if in his power to do
would not apply for a similar service on the same line sold so, in obedience to the subpoena or lawful inquiry of the
by him, it has been held that such an argument does not Commission, upon conviction thereof by a court of
bar the seller from applying and that the Public Service competent jurisdiction, shall be punished by a fine not
Commission, if it finds that there is public need for the exceeding five thousand pesos or by imprisonment not
new service applied for, may properly grant the certificate exceeding one year, or both, in the discretion of the court.
requested. In other words the primary consideration is a
finding by the Commission that public interest and (c) The Commissioner and associate commissioners, the
convenience require a given service and that parties may chiefs of divisions, the attorneys of the Commission, and
not by agreement deprive the Commission of its power. the deputy secretaries shall have the power to administer
oaths in all matters under the jurisdiction of the
(7) A case involving the grant of a Certificate of Commission.
Public Convenience to the respondent becomes moot and
academic where the respondent ceases to be a bus (d) Any person who shall testify falsely or make any false
operator, and it should be dismissed. affidavit or oath before the Commission or before any of
its members shall be guilty of perjury, and upon conviction
Section 30. thereof in a court of competent jurisdiction, shall be
punished as provided by law .
(a) The Commission may issue subpoenas and subpoenas
duces tecum, for witnesses in any matter or inquiry (e) Witnesses appearing before the Commission in
pending before the Commission and require the obedience to subpoena or subpoena duces tecum, shall be
production of all books, papers, tariffs, contracts, entitled to receive the same fees and mileage allowance as
agreements, and all other documents, which the witnesses attending Courts of First Instance in civil cases.
Commission may deem necessary in any proceeding. such
process shall be issued under the seal of the Commission, (f) Any person who shall obstruct the Commission or
signed by one of the Commissioners or by the secretary, either of the Commissioners while engaged in the
and may be served by any person of full age, or by discharge of Official duties, or who shall conduct himself
registered mail. In case of disobedience to such subpoena, in a rude, disrespectful or disorderly manner before the
the Commission may invoke the said of the Supreme Commission or either of the Commissioners, while
Court or of any Court of First Instance of the Philippines engaged in the discharge of official duties, or shall orally or
in requiring the attendance and testimony of witness and in writing be disrespectful to, offend or insult either of the
the production of books, papers, and documents under the Commissioners on occasion or by reason of the
provisions of this chapter, and the Supreme Court, or any performance of official duties, upon conviction thereof by
Court of First Instance of the Philippines within the a court of competent jurisdiction, shall be punished for
jurisdiction of which such inquiry is carried on, may in case each offense by a fine not exceeding one thousand pesos,
of contumacy of refusal to obey a subpoena, issue to any or by imprisonment not exceeding six months, or both, in
public service subject to the provisions of this Act, or to the discretion of the court.
The Commission is authorized and ordered to charge and (3) For each motor vehicle, truck, or trailer of two
collect from any public service or applicant, as the case tons or more, but less than three tons gross transportation
may be, the following fees as reimbursement of its capacity, twenty pesos.
expenses in the authorization, supervision and/or
regulation of public services: (4) For each motor vehicle, truck, or trailer of
three tons or more but less than four tons gross
(a) The charge of fifty pesos for the registration of: transportation capacity, thirty pesos.
(1) Applications under the provisions of Section (5) Motor vehicles, trucks, trailers or buses of four
sixteen (a), (b), (c), and (d), and twenty (a), (b) (c), (e), (f), tons or more gross capacity shall pay at the rate of ten
and (h): Provided however, That in case of transportation pesos per ton gross. The fees provided in paragraphs (d)
services an additional filing fee of five pesos shall be and (e) hereof shall be paid on or before September
charged for each additional unit or vehicle in excess of five thirtieth of each year with a penalty of fifty per centum in
units or vehicles applied for: And provided, finally, That case of delinquency: Provided, further, That if the fees or
no filing fee shall be collected for the reduction of rates if any balance thereof are not paid within sixty days from the
the same does not alter or modify in any way the basic said date, the penalty shall be increased by one per centum
rates of the schedule. for every month thereafter of delinquency: Provided,
however, That motor vehicles registered in the Motor
(2) Applications for the approval or modification Vehicles Office after September thirtieth shall be exempt
of maximum rates under Section fourteen. from payment for said year.
(b) Thirty pesos shall be collected from any operator of (e) For annual reimbursement of the expenses
land transportation for the registration of: incurred by the Commission in the supervision of other
public services and/or in the regulation or fixing of their
(1) Applications under Section seventeen (f).
rates, twenty centavos for each one hundred pesos or
(h) "Garage" shall mean any building in which two or more (a) There is created under the Department of Public Works
motor vehicles, either with or without drivers, are kept and Communications an office which shall be designated
ready for hire to the public, but shall not include street and known as the Land Transportation Commission,
stands, public service stations, or other public places composed of one Commissioner and one Deputy
designated by proper authority as parking spaces for motor Commissioner, who shall be vested with the powers and
vehicles for hire while awaiting or soliciting business. duties hereafter specified. Whenever the word
"Commission" is used in this Act, it shall be deemed to
(i) "Gross weight" shall mean the measured weight of a mean the Land Transportation Commission, and whenever
motor vehicle plus the maximum allowable carrying the word "Commissioner" is used in this Act, it shall be
capacity in merchandise, freight and/or passenger, as taken to mean the Commissioner or Deputy
determined by the Commissioner of Land Transportation. Commissioner. The Commissioner and the Deputy
1,000 kilos or less P75.00 (d) Private motorcycles and scooters of two or three
wheels and bicycles with motor attachments, the sum of
1,000 to 1,500 kilos 100.00 thirty pesos.
(f) The fee for registration of diesel-consuming vehicles (j) The maximum allowable gross weight of a motor truck,
shall be fifty percent more than that of vehicles using passenger bus, or trailer, upon which to compute the
motor fuel other than diesel oil. The fee for registration of registration fee thereof, shall be determined by the
motor vehicles for hire shall be sixty percent more than the Commissioner of Land Transportation. He shall, from
fees prescribed for private motor vehicles. time to time as the need of the service may require,
prepare, subject to the approval of the Secretary of Public
(g) No regular registration fees shall be charged for the Works and Communications, suitable tables of maximum
general registration of motor vehicles contemplated under allowable loads per wheel for different sizes kinds of tires.
the dealer's classification: Provided, That the
Commissioner of Land Transportation shall provide (k) The registration fees provided in this Act for trucks
appropriate dealer's number plates corresponding to the may be payable in two equal installment, the first to be
classification of vehicles hereinbelow described, and paid on or before the last working day of February if for
registration fee for every set of such dealer's number plates hire, and in March if private; and the second to be paid on
shall be in accordance with the following schedule of rates; or before the last working day of August: Provided, That
the fifty per cent penalty shall apply only to the unpaid
Two hundred pesos for each truck or trailer; balance of the remaining period of delinquency.
Twenty pesos for each motorcycle and the like. Permissible weights and dimensions of vehicles in
highways traffic.
(h) Registration under the "Government Motor Vehicle"
classification shall be free of charge, upon request of the (a) The maximum gross weight and measurement of motor
chief of bureau or office concerned. vehicles, unladen or with load, permissible on public
highways shall be as specified hereunder, subject to such
(i) Motor vehicles not intended to be operated or used regulations as the Commissioner with the approval of the
upon any public highway, or which are operated on Secretary of Public Works and Communications, may
highways not constructed or maintained by the promulgate, from time to time, as the conditions of the
Government, or are intended not to be used or operated at public highways may warrant and the needs of the service
all, shall be exempt from payment of the registration fees may require.
provided in this Act, but shall each pay an annual
recording and service fee of fifteen pesos: Provided, Permissible maximum weights:
however, That no refund, credit for, or reimbursement of
registration fees or part thereof shall be made to any owner 1. Per most heavily loaded wheel three thousand six
on account of the discontinuance of the use or operation hundred kilograms;
of a motor vehicle subsequent to the payment of such
registration fees: Provided, further, That in the event 2. Per most heavily loaded axle eight thousand kilograms;
motor vehicles exempted under this section shall be found
operated on any public highways, the regular registration 3. Per most heavily loaded axle group (the two axles of the
fees and surcharges shall be collected in addition to group being at least one meter and less than two meters
whatever penalties may be imposed for violation of this apart) fourteen thousand five hundred kilograms.
Act. The Commissioner of Land Transportation shall
provide distinctive number plates for vehicles exempted
Special permits, fees for. - The Commissioner with the Section 12.
approval of the Secretary of Public Works and
Fee for original registration for part of year. - If any
Communications, shall issue regulations and schedules of
application for the original registration is made during the
additional fees under which special permits may be issued
first quarter of a calendar year, the total annual fee for the
in the discretion of the Commissioner or his deputies for
year shall be paid, if made during the second quarter,
each of the following special cases, without which special
three-fourths of the annual fee for that year shall be paid, if
permit no vehicles shall be operated on the public
made during the third quarter, one half of the annual fee
highways:
shall be paid, and if made during the fourth quarter, one-
(a) To operate a motor vehicle or trailer outfit with wheel, fourth of the annual fee shall be paid.
axle, or axle group loads in excess of the limits fixed in
subsection (a) of Section nine hereof or in any regulation
issued by the Commissioner.
Use and authority of certificate of registration. Whenever a motor vehicle is found to be underweight the
owner thereof shall pay the difference in the registration
(a) The said certificate shall be preserved and carried in the fees corresponding to the shortage in weight plus a fifty
car by the owner as evidence of the registration of the per cent surcharge, and until such payment is made, the
motor vehicle described therein, and shall be presented certificate of registration of the motor vehicle concerned
with subsequent applications for re-registration, transfer of shall be suspended by the Commissioner.
ownership, or recording of encumbrances: Provided, That
in lieu of the certificate of registration a true copy or After two such suspension, re-registration of the vehicle
photostat thereof may be carried in the motor vehicle. concerned for one year may be denied.
(b) The certificate of registration issued under the The Commissioner shall notify the owner of the motor
provisions of this Act for any motor vehicle shall, while vehicle of any action taken by him under this section.
the same is valid and effective and has not been suspended
or revoked, be the authority for the operation of such Section 17.
motor vehicle.
Number plates, preparation, preparation and issuance of .
(c) No motor vehicle shall be operated on the public
highways in a manner which would place it under a (a) The Commissioner shall cause number plates to be
classification requiring the payment of a larger registration prepared and issued to owners of motor vehicles and
fee than that stated in the certificate of registration. trailers registered under this Act, charging a fee of four
pesos for each pair including the numerals indicating the
Section 16. year of registry: Provided, however, That in case no
number plates are available, the Commissioner or his
The Commissioner and his deputies are hereby authorized Driver's bond. - The Commissioner before reinstating any
to administer the oath in connection with such affidavit. driver's license which has been suspended or revoked
under the provisions of the preceding section or of any
Section 27. provisions of this Act, may require such driver to post a
bond in the sum of one thousand pesos conditioned upon
Suspension, revocation of driver's license. the satisfaction and payment of any claim which may be
filed or of any execution which may be issued against such
(a) The Commissioner may suspend for a period not driver in any case wherein said driver may be held
exceeding three months or, after hearing, revoke any answerable while operating motor vehicles. The bond
driver's license issued under the provisions of this Act, and required in this section shall be in such form as to render
may order any such license to be delivered to him sureties liable at least for a period of not less than one year
whenever he has reason to believe that the holder thereof nor more than three years: Provided, however, That upon
is an improper person to operate motor vehicles, or in written application to the Commissioner for release from
operating or using a motor vehicle in, or as an accessory such a bond, the Commissioner may after revoking or
to, the commission of any crime or act which endangers suspending the driver's license, authorize the release of the
the public. Any deputy of the Commissioner may, for the bondsmen from further responsibility thereunder:
same cause, suspend for a period not exceeding three Provided, further, That should the Commissioner decide
months any driver's license issued under the provisions of not to revoke the license of a driver who has been
this Act: Provided, That such suspension may be appealed convicted of homicide through reckless imprudence, or of
to the Commissioner who may, after reviewing the case, the violation of the speed limit or of reckless driving at
confirm, reverse or modify the action taken by such least three times within a twelve-month period, the said
deputy. driver shall post a bond in the sum of not less than two
thousand pesos, conditioned upon the payment of any
(b) Whenever during any twelve-month period a driver claim which may be filed or any execution which may be
shall have been convicted at least three times for the
(c) Riding on running boards. - No driver shall permit any (b-1) Horns. - Every motor vehicle shall be provided with
person to ride on the running board, step board, or a horn or signalling devise in good working order:
mudguard of his motor vehicle for any purpose except to Provided, however, That no horn or signalling device
make repair or adjustment in the motor or to collect fares. emitting an exceptionally loud, startling, or disagreeable
sound shall be installed or used on any motor vehicle.
Section 33.
All authorized emergency vehicles, such as ambulance and
Passenger or freight capacity marked on vehicle. - All police cars and fire wagons used for emergency calls shall
passengers automobiles for hire shall have the registered be equipped with a bell, siren, or exhaust whistle of a type
passenger capacity plainly and conspicuously marked on approved by the Commissioner, and no such device shall
both sides thereof, in letters and numerals not less than be installed or used in any other vehicle.
five centimeters in height.
No vehicle not classified as a motor vehicle under this Act
All motor trucks, whether for passenger or freight, private, shall be equipped with a horn or signaling device similar to
or for hire, shall have the registered passenger gross and the horn customarily used on motor vehicles.
net weight capacities plainly and conspicuously marked on
both sides thereof, in letters and numerals not less than (c) Headlights. - Every motor vehicle of more than one
five centimeters in height. meter of projected width, while in use on any public
highway shall bear two headlights, one on each side, with
ARTICLE IV white or yellowish light visible from the front, which, not
later than one-half hour after sunset and until at least one-
Accessories of Motor Vehicles
half four before sunrise and whenever weather conditions
Section 34. so require, shall both be lighted.
(a) Tires of motor vehicles. - No motor vehicle with Additional lamps and light may be carried, but no red
metallic tires shall be operated upon any public highway, lights shall be visible forward or ahead of the vehicle.
and solid tires whenever used shall be of sufficient Trucks, buses, trailers, and other similar vehicles must
thickness to prevent the metal rims thereof from coming carry, while in use on any public highway during night-
in direct contact with the road. time, colored riding lights on each of the four corners not
more than ten centimeters from the top.
(b) Brakes - Every motor vehicle with four or more wheels
shall be provided with dual hydraulic brake system so that All motor vehicles shall be equipped with devices for
varying the intensity of light, and the driver must dim the
(h) Windshield wiper. - Every motor vehicle shall be MAXIMUM Passengers Cars Motor trucks
equipped with a mechanically or electrically operated ALLOWABLE and Motorcycle and buses
device for wiping off raindrops or other moisture from its SPEEDS
front windshield.
(a) The driver of a vehicle shall not drive to the left side of
the center line of a highway in overtaking or passing
another vehicle proceeding in the same direction, unless
such left side is clearly visible, and is free of oncoming
traffic for a sufficient distance ahead to permit such ARTICLE III
overtaking or passing to be made in safety.
Section 46. Right of way for police and other emergency vehicles. -
Upon the approach of any police or fire department
Parking prohibited in specified places. - No driver shall vehicle, or of an ambulance giving audible signal, the driver
park a vehicle, or permit it to stand, whether attended or of every other vehicle shall immediately drive the same to a
unattended, upon a highway in any of the following places: position as near as possible and parallel to the right-hand
edge or curb of the highway, clear of any intersection of
(a) Within an intersection highways, and shall stop and remain in such position,
unless otherwise directed by a peace officer, until such
(b) On a crosswalk vehicle shall have passed.
(c) Within six meters of the intersection of curb lines. Section 50.
(d) Within four meters of the driveway entrance to and fire Tampering with vehicles. - No unauthorized person shall
station. sound the horn, handle the levers or set in motion or in
any way tamper with a damage or deface any motor
(e) Within four meters of fire hydrant vehicle.
(f) In front of a private driveway Section 51.
(g) On the roadway side of any vehicle stopped or parked Hitching to a vehicle. - No person shall hang on to, ride
at the curb or edge of the highway on, the outside or the rear end of any vehicle, and no
person on a bicycle, roller skate or other similar device,
(h) At any place where official signs have been erected
shall hold fast to or hitch on to any moving vehicle, and no
prohibiting parking.
driver shall knowingly permit any person to hang on to or
Section 47. ride, the outside or rear end of his vehicle or allow any
person on a bicycle, roller skate or other similar device to
Parked vehicle. - Whenever a motor vehicle is parked hold fast or hitch to his vehicle.
unattended on any highway, the driver thereof must turn
off the ignition switch and stop the motor and notch Section 52.
effectively the hand brake.
ARTICLE V
Duty of driver in case of accident. - In the event that any (b) For failure to sign driver's license or to carry same
accident should occur as a result of the operation of a while driving, twenty pesos fine.
motor vehicle upon a highway, the driver present, shall
show his driver's license, give his true name and address (c) Driving a vehicle with a delinquent or invalid driver's
and also the true name and address of the owner of the license, fifty pesos fine.
motor vehicle.
(d) Driving a motor vehicle with delinquent, suspended or
No driver of a motor vehicle concerned in a vehicular invalid registration, or without registration or without the
accident shall leave the scene of the accident without proper license plate for the current year, three hundred
aiding the victim, except under any of the following pesos fine.
circumstances:
(e) Driving a motor vehicle without first securing a driver's
1. If he is in imminent danger of being seriously license, three hundred pesos fine.
harmed by any person or persons by reason of the
accident; (f) Driving a motor vehicle while under the influence of
liquor or narcotic drug, a fine of not less than two hundred
2. If he reports the accident to the nearest officer pesos nor more than five hundred pesos, or imprisonment
of the law; or of not more than three months, or both, at the discretion
of the Court.
3. If he has to summon a physician or nurse to aid
the victim. (g) Violation of Section thirty-two, thirty-four (a), (b) and
(b-1), thirty-five and forty-six a fine not exceeding one
hundred pesos: Provided, however, That in the case of
violation of Section 34 (b) the vehicle or vehicles affected
may not be allowed to operate unless the requirements
provided in this section are complied with.
CHAPTER V
The State, subject to the provisions of this Constitution Until the Congress provides otherwise, the National
and national development policies and programs, shall Economic and Development Authority shall function as
protect the rights of indigenous cultural communities to the independent planning agency of the government.
their ancestral lands to ensure their economic, social, and
cultural well-being. Section 10.
The Congress may provide for the applicability of The Congress shall, upon recommendation of the
customary laws governing property rights or relations in economic and planning agency, when the national interest
determining the ownership and extent of ancestral domain. dictates, reserve to citizens of the Philippines or to
corporations or associations at least sixty per centum of
Section 6. whose capital is owned by such citizens, or such higher
percentage as Congress may prescribe, certain areas of
The use of property bears a social function, and all investments. The Congress shall enact measures that will
economic agents shall contribute to the common good. encourage the formation and operation of enterprises
Individuals and private groups, including corporations, whose capital is wholly owned by Filipinos.
cooperatives, and similar collective organizations, shall
have the right to own, establish, and operate economic In the grant of rights, privileges, and concessions covering
enterprises, subject to the duty of the State to promote the national economy and patrimony, the State shall give
distributive justice and to intervene when the common preference to qualified Filipinos.
good so demands.
The State shall regulate and exercise authority over foreign
investments within its national jurisdiction and in
accordance with its national goals and priorities.
No franchise, certificate, or any other form of The Congress shall create an agency to promote the
authorization for the operation of a public utility shall be viability and growth of cooperatives as instruments for
granted except to citizens of the Philippines or to social justice and economic development.
corporations or associations organized under the laws of
the Philippines, at least sixty per centum of whose capital Section 16.
is owned by such citizens; nor shall such franchise,
certificate, or authorization be exclusive in character or for The Congress shall not, except by general law, provide for
a longer period than fifty years. Neither shall any such the formation, organization, or regulation of private
franchise or right be granted except under the condition corporations. Government-owned or controlled
that it shall be subject to amendment, alteration, or repeal corporations may be created or established by special
by the Congress when the common good so requires. The charters in the interest of the common good and subject to
State shall encourage equity participation in public utilities the test of economic viability.
by the general public. The participation of foreign
Section 17.
investors in the governing body of any public utility
enterprise shall be limited to their proportionate share in In times of national emergency, when the public interest so
its capital, and all the executive and managing officers of requires, the State may, during the emergency and under
such corporation or association must be citizens of the reasonable terms prescribed by it, temporarily take over or
Philippines. direct the operation of any privately-owned public utility or
business affected with public interest.
Section 12.
Section 18.
The State shall promote the preferential use of Filipino
labor, domestic materials and locally produced goods, and The State may, in the interest of national welfare or
adopt measures that help make them competitive. defense, establish and operate vital industries and, upon
payment of just compensation, transfer to public
Section 13.
ownership utilities and other private enterprises to be
The State shall pursue a trade policy that serves the general operated by the Government.
welfare and utilizes all forms and arrangements of
Section 19.
exchange on the basis of equality and reciprocity.
The State shall regulate or prohibit monopolies when the
Section 14.
public interest so requires. No combinations in restraint of
The sustained development of a reservoir of national trade or unfair competition shall be allowed.
talents consisting of Filipino scientists, entrepreneurs,
Section 20.
professionals, managers, high-level technical manpower
and skilled workers and craftsmen in all fields shall be The Congress shall establish an independent central
promoted by the State. The State shall encourage monetary authority, the members of whose governing
appropriate technology and regulate its transfer for the board must be natural-born Filipino citizens, of known
national benefit. probity, integrity, and patriotism, the majority of whom
shall come from the private sector. They shall also be
The practice of all professions in the Philippines shall be
subject to such other qualifications and disabilities as may
limited to Filipino citizens, save in cases prescribed by law.
be prescribed by law. The authority shall provide policy
direction in the areas of money, banking, and credit. It
shall have supervision over the operations of banks and
Aimee Nono Calo [Transportation Law] Page 95
exercise such regulatory powers as may be provided by law E. Concept of franchise and certificate of public
over the operations of finance companies and other convenience
institutions performing similar functions.
Franchise
Until the Congress otherwise provides, the Central Bank of
the Philippines operating under existing laws, shall Grant or privilege from the sovereign power
function as the central monetary authority.
CPC
Section 21.
Form of regulation through administrative
Foreign loans may only be incurred in accordance with law
agencies
and the regulation of the monetary authority. Information
on foreign loans obtained or guaranteed by the
Government shall be made available to the public. Not only Congress has the power to grant such
authorization but also specified agencies in the Executive
Section 22. Branch granted by law to issue such authorization
Acts which circumvent or negate any of the provisions of
this Article shall be considered inimical to the national
interest and subject to criminal and civil sanctions, as may Franchises issued by Congress are generally not required
be provided by law. before each and every public utility may operate
D. Regulatory Agencies The law has granted certain administrative agencies the
power to grant such licenses
1) Land Transportation Office (LTO);