09 Transpo Compiled Codal. Week 10-11. Atty. Ampil.

C ON TEN TS

C. CODE OF COMMERCE .......................................................................................................... 2

X. 10th week (overland transportation; vessels; real and hypothecary
nature of maritime law; persons in maritime law; maritime accidents;
maritime contracts) ............................................................................................................. 2
Study: Code of Commerce, articles 349-379; 573-651........................................ 2
Articles 349-379 ......................................................................................................... 2
Articles 573-651 ......................................................................................................... 5
XI. 11th week (overland transportation; vessels; real and hypothecary
nature of maritime law; persons in maritime lawl maritime accidents;
maritime contracts) .......................................................................................................... 17
Study: Code of Commerce, articles 652-736, 806-845..................................... 17
Articles 652-736 ...................................................................................................... 17
Articles 806-845 ...................................................................................................... 25
 09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 2

C . C ODE OF C OMMERC E Article 351 – In transportation made by railroads or other enterprises subject
to regulation rate and time schedules, it shall be sufficient for the bills of lading
or the declaration of shipment furnished by the shipper to refer, with respect to
X. 10TH WEEK (OVERLAND TRANSPORTATION; VESSELS; REAL the cost, time and special conditions of the carriage, to the schedules and
AND HYPOTHECARY NATURE OF MARITIME LAW; PERSONS IN regulations the application of which he requests; and if the shipper does not
MARITIME LAW; MARITI ME ACCIDENTS; MARITI ME CONTRACTS) determine the schedule, the carrier must apply the rate of those which appear
to be the lowest, with the conditions inherent thereto, always including a
statement or reference to in the bill of lading which he delivers to the shipper.
STUDY: CODE OF COMMERCE, ARTICLES 349-379; 573-651.
Article 352 – The bills of lading, or tickets in cases of transportation of
Source: http://legalnotes.wordpress.com/2013/01/23/code-of-commerce- passengers, may be diverse, some for persons and others for baggage; but all of
provisions-on-overland-transportation-provisions-only/ them shall bear the name of the carrier, the date of shipment, the points of
departure and arrival, the cost, and, with respect to the baggage, the number
ARTICLES 349-379 and weight of the packages, with such other manifestations which may be
considered necessary for their easy identification.
Article 349 – A contract of transportation by land or water ways of any kind
shall be considered commercial: Article 353 – The legal evidence of the contract between the shipper and the
carrier shall be the bills of lading, by the contents of which the disputes which
may arise regarding their execution and performance shall be decided, no
1. When it has for its object merchandise or any Article of commerce.
exceptions being admissible other than those of falsity and material error in the
2. When, whatever its object may be, the carrier is a merchant or is
drafting.
habitually engaged in transportation for the public.
After the contract has been complied with, the bill of lading which the carrier
Article 350 – The shipper as well as the carrier of merchandise or goods may
has issued shall be returned to him, and by virtue of the exchange of this title
mutually demand that a bill of lading be made, stating: with the thing transported, the respective obligations and actions shall be
considered cancelled, unless in the same act the claim which the parties may
1. The name, surname and residence of the shipper. wish to reserve be reduced to writing, with the exception of that provided for in
2. The name, surname and residence of the carrier. Article 366.
3. The name, surname and residence of the person to whom or to whose
order the goods are to be sent or whether they are to be delivered to
In case the consignee, upon receiving the goods, cannot return the bill of lading
the bearer of said bill.
subscribed by the carrier, because of its loss or of any other cause, he must give
4. The description of the goods, with a statement of their kind, of their
the latter a receipt for the goods delivered, this receipt producing the same
weight, and of the external marks or signs of the packages in which
effects as the return of the bill of lading.
they are contained.
5. The cost of transportation.
6. The date on which shipment is made. Article 354 – In the absence of a bill of lading, disputes shall be determined by
7. The place of delivery to the carrier. the legal proofs which the parties may present in support of their respective
8. The place and the time at which delivery to the consignee shall be claims, according to the general provisions established in this Code for
made. commercial contracts.
9. The indemnity to be paid by the carrier in case of delay, if there should
be any agreement on this matter. Article 355 – The responsibility of the carrier shall commence from the
moment he receives the merchandise, personally or through a person charged
for the purpose, at the place indicated for receiving them.

Article 356 – Carriers may refuse packages which appear unfit for
transportation; and if the carriage is to be made by railway, and the shipment is
insisted upon, the company shall transport them, being exempt from all
responsibility if its objections, is made to appear in the bill of lading.
Article 357 – If by reason of well-founded suspicion of falsity in the declaration
as to the contents of a package the carrier should decide to examine it, he shall
proceed with his investigation in the presence of witnesses, with the shipper or
consignee in attendance.
If the shipper or consignee who has to be cited does not attend, the
examination shall be made before a notary, who shall prepare a memorandum
of the result of the investigation, for such purposes as may be proper.
If the declaration of the shipper should be true, the expense occasioned by the
examination and that of carefully repacking the packages shall be for the
account of the carrier and in a contrary case for the account of the shipper.
Article 358 – If there is no period fixed for the delivery of the goods the carrier
shall be bound to forward them in the first shipment of the same or similar
goods which he may make point where he must deliver them; and should he
not do so, the damages caused by the delay should be for his account.
Article 359 – If there is an agreement between the shipper and the carrier as to
the road over which the conveyance is to be made, the carrier may not change
the route, unless it be by reason of force majeure; and should he do so without
this cause, he shall be liable for all the losses which the goods he transports
may suffer from any other cause, beside paying the sum which may have been
stipulated for such case.
When on account of said cause of force majeure, the carrier had to take another
route which produced an increase in transportation charges, he shall be
reimbursed for such increase upon formal proof thereof.
Article 360 – The shipper, without changing the place where the delivery is to
be made, may change the consignment of the goods which he delivered to the
carrier, provided that at the time of ordering the change of consignee the bill of
lading signed by the carrier, if one has been issued, be returned to him, in
exchange for another wherein the novation of the contract appears.
The expenses which this change of consignment occasions shall be for the
account of the shipper.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 3
Article 361 – [The merchandise shall be transported at the risk and venture of
the shipper, if the contrary has not been expressly stipulated.
As a consequence, all the losses and deteriorations which the goods may suffer
during the transportation by reason of fortuitous event, force majeure, or the
inherent nature and defect of the goods, shall be for the account and risk of the
shipper.
Proof of these accidents is incumbent upon the carrier.]
Article 362 – Nevertheless, the carrier shall be liable for the losses and damages
resulting from the causes mentioned in the preceding Article if it is proved, as
against him, that they arose through his negligence or by reason of his having
failed to take the precautions which usage has established among careful
persons, unless the shipper has committed fraud in the bill of lading,
representing the goods to be of a kind or quality different from what they really
were.
If, notwithstanding the precautions referred to in this article, the goods
transported run the risk of being lost, on account of their nature or by reason of
unavoidable accident, there being no time for their owners to dispose of them,
the carrier may proceed to sell them, placing them for this purpose at the
disposal of the judicial authority or of the officials designated by special
provisions.
Article 363 – Outside of the cases mentioned in the second paragraph of Article
361, the carrier shall be obliged to deliver the goods shipped in the same
condition in which, according to the bill of lading, they were found at the time
they were received, without any damage or impairment, and failing to do so, to
pay the value which those not delivered may have at the point and at the time
at which their delivery should have been made.
If those not delivered form part of the goods transported, the consignee may
refuse to receive the latter, when he proves that he cannot make use of them
independently of the others.
Article 364 – If the effect of the damage referred to in Article 361 is merely a
diminution in the value of the goods, the obligation of the carrier shall be
reduced to the payment of the amount which, in the judgment of experts,
constitutes such difference in value.

Article 365 – If, in consequence of the damage, the goods are rendered useless
for sale and consumption for the purposes for which they are properly
destined, the consignee shall not be bound to receive them, and he may have
them in the hands of the carrier, demanding of the latter their value at the
current price on that day.
If among the damaged goods there should be some pieces in good condition
and without any defect, the foregoing provision shall be applicable with respect
to those damaged and the consignee shall receive those which are sound, this
segregation to be made by distinct and separate pieces and without dividing a
single object, unless the consignee proves the impossibility of conveniently
making use of them in this form.
The same rule shall be applied to merchandise in bales or packages, separating
those parcels which appear sound.
Article 366 – Within the twenty-four hours following the receipt of the
merchandise, the claim against the carrier for damage or average be found
therein upon opening the packages, may be made, provided that the indications
of the damage or average which gives rise to the claim cannot be ascertained
from the outside part of such packages, in which case the claim shall be
admitted only at the time of receipt.
After the periods mentioned have elapsed, or the transportation charges have
been paid, no claim shall be admitted against the carrier with regard to the
condition in which the goods transported were delivered.
Article 367 – If doubts and disputes should arise between the consignee and
the carrier with respect to the condition of the goods transported at the time
their delivery to the former is made, the goods shall be examined by experts
appointed by the parties, and, in case of disagreement, by a third one appointed
by the judicial authority, the results to be reduced to writing; and if the
interested parties should not agree with the expert opinion and they do not
settle their differences, the merchandise shall be deposited in a safe warehouse
by order of the judicial authority, and they shall exercise their rights in the
manner that may be proper.
Article 368 – The carrier must deliver to the consignee, without any delay or
obstruction, the goods which he may have received, by the mere fact of being
named in the bill of lading to receive them; and if he does not do so, he shall be
liable for the damages which may be caused thereby.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 4
Article 369 – If the consignee cannot be found at the residence indicated in the
bill of lading, or if he refuses to pay the transportation charges and expenses, or
if he refuses to receive the goods, the municipal judge, where there is none of
the first instance, shall provide for their deposit at the disposal of the shipper,
this deposit producing all the effects of delivery without prejudice to third
parties with a better right.
Article 370 – If a period has been fixed for the delivery of the goods, it must be
made within such time, and, for failure to do so, the carrier shall pay the
indemnity stipulated in the bill of lading, neither the shipper nor the consignee
being entitled to anything else.
If no indemnity has been stipulated and the delay exceeds the time fixed in the
bill of lading, the carrier shall be liable for the damages which the delay may
have caused.
Article 371 – In case of delay through the fault of the carrier, referred to in the
preceding articles, the consignee may leave the goods transported in the hands
of the former, advising him thereof in writing before their arrival at the point of
destination.
When this abandonment takes place, the carrier shall pay the full value of the
goods as if they had been lost or mislaid.
If the abandonment is not made, the indemnification for losses and damages by
reason of the delay cannot exceed the current price which the goods
transported would have had on the day and at the place in which they should
have been delivered; this same rule is to be observed in all other cases in which
this indemnity may be due.
Article 372 – The value of the goods which the carrier must pay in cases if loss
or misplacement shall be determined in accordance with that declared in the
bill of lading, the shipper not being allowed to present proof that among the
goods declared therein there were articles of greater value and money.
Horses, vehicles, vessels, equipment and all other principal and accessory
means of transportation shall be especially bound in favor of the shipper,
although with respect to railroads said liability shall be subordinated to the
provisions of the laws of concession with respect to the property, and to what
this Code established as to the manner and form of effecting seizures and
attachments against said companies.

Article 373 – The carrier who makes the delivery of the merchandise to the
consignee by virtue of combined agreements or services with other carriers
shall assume the obligations of those who preceded him in the conveyance,
reserving his right to proceed against the latter if he was not the party directly
responsible for the fault which gave rise to the claim of the shipper or
consignee.
The carrier who makes the delivery shall likewise acquire all the actions and
rights of those who preceded him in the conveyance.
The shipper and the consignee shall have an immediate right of action against
the carrier who executed the transportation contract, or against the other
carriers who may have received the goods transported without reservation.
However, the reservation made by the latter shall not relieve them from the
responsibilities which they may have incurred by their own acts.
Article 374 – The consignees to whom the shipment was made may not defer
the payment of the expenses and transportation charges of the goods they
receive after the lapse of twenty-four hours following their delivery; and in case
of delay in this payment, the carrier may demand the judicial sale of the goods
transported in an amount necessary to cover the cost of transportation and the
expenses incurred.
Article 375 – The goods transported shall be especially bound to answer for the
cost of transportation and for the expenses and fees incurred for them during
their conveyance and until the moment of their delivery.
This special right shall prescribe eight days after the delivery has been made,
and once prescribed, the carrier shall have no other action than that
corresponding to him as an ordinary creditor.
Article 376 – The preference of the carrier to the payment of what is owed him
for the transportation and expenses of the goods delivered to the consignee
shall not be cut off by the bankruptcy of the latter, provided it is claimed within
the eight days mentioned in the preceding article.
Article 377 – The carrier shall be liable for all the consequences which may
arise from his failure to comply with the formalities prescribed by the laws and
regulations of the public administration, during the whole course of the trip
and upon arrival at the point of destination, except when his failure arises from
having been led into error by falsehood on the part of the shipper in the
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 5
declaration of the merchandise. If the carrier has acted by virtue of a formal
order of the shipper or consignee of the merchandise, both shall become
responsible.
Article 378 – Agents for transportation shall be obliged to keep a special
registry, with the formalities required by Article 36, in which all the goods the
transportation of which is undertaken shall be entered in consecutive order of
number and dates, with a statement of the circumstances required in Article
350 and others following for the respective bills of lading.
Article 379 – The provisions contained in Articles 349 and following shall be
understood as equally applicable to those who, although they do not personally
effect the transportation of the merchandise, contract to do so through others,
either as contractors for a particular and definite operation, or as agents for
transportations and conveyances.
In either case they shall be subrogated in the place of the carriers themselves,
with respect to the obligations and responsibility of the latter, as well as with
regard to their rights.
ARTICLES 573-651
MARITIME COMMERCE TITLE ONE VESSELS
ARTICLE 573. Merchant vessels constitute property which may be acquired and
transferred by any of the means recognized by law. The acquisition of a vessel
must appear in a written instrument, which shall not produce any effect with
respect to third persons if not inscribed in the registry of vessels.
The ownership of a vessel shall likewise be acquired by possession in good
faith, continued for three years, with a just title duly recorded. In the absence of
any of these requisites, continuous possession for ten years shall be necessary
in order to acquire ownership.
A captain may not acquire by prescription the vessel of which he is in
command.
ARTICLE 574. Builders of vessels may employ the materials and follow, with
respect to their construction and rigging, the systems most suitable to their
interests. Ship owners and seamen shall be subject to what the laws and
regulations of the public administration on navigation, customs, health, safety
of vessels, and other similar matters.

ARTICLE 575. Co-owners of vessels shall have the right of repurchase and
redemption in sales made to strangers, but they may exercise the same only
within the nine days following the inscription of the sale in the registry, and by
depositing the price at the same time.
ARTICLE 576. In the sale of a vessel it shall always be understood as included
the rigging, masts, stores and engine of a streamer appurtenant thereto, which
at the time belongs to the vendor. The arms, munitions of war, provisions and
fuel shall not be considered as included in the sale. The vendor shall be under
the obligation to deliver to the purchaser a certified copy of the record sheet of
the vessel in the registry up to the date of the sale.
ARTICLE 577. If the alienation of the vessel should be made while it is on a
voyage, the freightage which it earns from the time it receives its last cargo
shall pertain entirely to the purchaser, and the payment of the crew and other
persons who make up its complement for the same voyage shall be for his
account. If the sale is made after the vessel has arrived at the port of its
destination, the freightage shall pertain to the vendor, and the payment of the
crew and other individuals who make up its complement shall be for his
account, unless the contrary is stipulated in either case.
ARTICLE 578. If the vessel being on a voyage or in a foreign port, its owner or
owners should voluntarily alienate it, either to Filipinos or to foreigners
domiciled in the capital or in a port of another country, the bill of sale shall be
executed before the consul of the Republic of the Philippines at the port where
it terminates its voyage and said instrument shall produce no effect with
respect to third persons if it is not inscribed in the registry of the consulate. The
consul shall immediately forward a true copy of the instrument of purchase and
sale of the vessel to the registry of vessels of the port where said vessel is
inscribed and registered. In every case the alienation of the vessel must be
made to appear with a statement of whether the vendor receives its 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 to a Filipino, this fact shall be stated in the
certificate of navigation.
When a vessel, being on a voyage, shall be rendered useless for navigation, the
captain shall apply to the competent judge on court of the port of arrival,
should it be in the Philippines; and should it be in a foreign country, to the
consul of the Republic of the Philippines, should there be one, or, where there is
none, to the judge or court or to the local authority; and the consul, or the judge
or court, shall order an examination of the vessel to be made. If the consignee
or the insurer should reside at said port, or should have representatives there,
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 6
they must be cited in order that they may take part in the proceedings on behalf
of whoever may be concerned.
ARTICLE 579. After the damage to the vessel and the impossibility of her being
repaired, in order to continue the voyage had been shown, its sale at public
auction shall be ordered, subject to the following rules:
1. The hull of the vessel, its rigging, engines, stores, and other articles shall be
appraised, after making an inventory, said proceedings to be brought to the
notice of the persons who may wish to take part in the auction.
2. The order or decree ordering the auction to be held shall be posted in the
usual places, an announcement thereof to be inserted in the Official Gazette and
in two of the newspapers of the largest circulation of the port where the
auction is to be held, should there be any. The period which may be fixed for
the auction shall not be less than twenty days.
3. These announcements shall be repeated every ten days, and their
publication shall be made to appear in the records.
4. The auction shall be held on the day fixed, with the formalities prescribed
in the common law for judicial sales.
5. If the sale should take place while the vessel is in a foreign country, the
special provisions governing such cases shall be observed.
ARTICLE 580. In all judicial sales of any vessel for the payment of creditors, the
following shall have preference in the order stated 2
1. The credit in favor of the public treasury proven by means of an official
certificate of competent authority.
2. The judicial costs of the proceedings, according to an appraisement
approved by the judge or court.
3. The pilotage charges, tonnage dues, and the other sea or port charges,
proven by means of proper certificates of the officers intrusted with the
collection thereof.
4. The salaries of the depositaries and keepers of the vessel and any other
expenses for its preservation from the time of arrival at the port until the sale,
which appear to have been paid or be due by virtue of an account verified and
approved by the judge or court.
5. The rent of the warehouse where the rigging and stores of the vessel have
been taken care of, according to contract.
6. The salaries due the captain and crew during its last voyage, which shall be
verified by means of the liquidation to be made in view of the lists and of the
books of account of the vessel, approved by the chief of the Bureau of Merchant
Marine, where there is one, and in his absence by the consul or judge or court.
7. The reimbursement for the goods of the freight which the captain may
have sold in order to repair the vessel, provided that the sale has been ordered

through a judicial proceedings held with the formalities required in such cases,
and recorded in the certificate of registry of the vessel.
8. The part of the price which has not been paid to the said vendor, the
unpaid credits for materials and labor in the construction of the vessel, when it
has not navigated, and those arising from the repair and equipment of the
vessels and from its provisioning with victuals and fuel during the last voyage.
In order that the credits provided for in this subdivision may enjoy this
preference, they must appear by contracts recorded in the registry of vessels,
or if they were contracted for the vessel while on a voyage and said vessel has
not returned to the port where it is registered, they must be made with the
authorization required for such cases and annotated in the certificate of
registration of the vessel.
9. The amount borrowed on bottomry on the hull, keel, tackle, and stores of
the vessel before its departure, proven by means of the contract executed
according to law and recorded in the registry of vessels; those borrowed during
the voyage with the authorization mentioned in the preceding subdivision,
satisfying the same requisites; and the insurance premium, proven by the
insurance policy or a certificate taken from the books of the broker.
10. The indemnity due the shipper for the value of the goods shipped which
were not delivered to the consignees, or for averages suffered for which the
vessel is liable, provided that either appear in a judicial or arbitration decision.
ARTICLE 581. If the proceeds of the sale should not be sufficient to pay all the
creditors included in one number or grade, the residue shall be divided among
them pro rata.
ARTICLE 582. After the bill of the judicial sale at public auction has been
executed and inscribed in the registry of vessels, all the other liabilities of the
vessel in favor of the creditors shall be considered extinguished. But if the sale
should have been voluntary and should have been made while the vessel was
on a voyage, the creditors shall preserve their rights against the vessel until it
returns to the port of her registry, and three months after the inscription of the
sale in the registry of vessel or the arrival.
ARTICLE 583. If while on a voyage the captain should find it necessary to
contract one or more of the obligations mentioned in subdivisions 8 and 9 of
Article 580, he shall apply to the judge or court if he is in Philippine territory,
and otherwise to the consul of the Republic of the Philippines, should there be
one, and, in his absence, to the judge or court or proper local authority,
presenting the certificate of the registration sheet treated of in Article 612 and
the instruments proving the obligation contracted. The judge or court, the
consul, or the local authority, as the case may be, in view of the result of the
proceedings instituted, shall make a temporary memorandum of their result in
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 7
the certificate, in order that it may be recorded in the registry when the vessel
returns to the port of its registry, or so that it can be admitted as a legal and
preferred obligation in case of sale before its return, by reason of the sale of the
vessel on account of a declaration of unseaworthiness. The omission of this
formality shall make the captain personally liable for the credits prejudiced on
his account.
ARTICLE 584. The vessels subject to liability for the credits mentioned in
Article 580 may be attached and judicially sold in the manner prescribed in
Article 579, in the port in which they may be found, at the instance of any of the
creditors; but if they should be loaded and ready to sail, the attachment may
not be effected except for debts contracted to prepare and provision the vessel
for the same voyage, and even then the attachment shall be dissolved if any
person interested in its sailing should give a bond for the return of the vessel
within the period fixed in the certificate of navigation binding himself to pay
the indebtedness insofar as it may be legal, should it fail to do so, even if this
failure be due to fortuitous event. For debts of any other kind whatsoever not
comprised within the said Article 580, the vessel may be attached only in the
port of her registry.
ARTICLE 585. For all purposes of law not modified or restricted by the
provisions of this Code, vessels shall continue to be considered as personal
property.
TITLE TWO
PERSONS WHO TAKE PART IN MARITIME COMMERCE SECTION ONE
SHIPOWNERS AND SHIP AGENTS
ARTICLE 586. The shipowner and the ship agent shall be civilly liable for the
acts of the captain and for the obligations contracted by the latter to repair,
equip, and provision the vessel, provided the creditor proves that the amount
claimed was invested for the benefit of the same. By ship agent is understood
the person entrusted with provisioning or representing the vessel in the port in
which it may be found.
ARTICLE 587. The ship agent shall also be civilly liable for the indemnities in
favor of third persons which may arise from the conduct of the captain in the
care of the goods which he loaded on the vessel; but he may exempt himself
therefrom by abandoning the vessel with all her equipments and the freight it
may have earned during the voyage. ARTICLE 588. Neither the shipowner nor
the ship agent shall be liable for the obligations contracted by the captain, if the
latter exceeds the powers and privileges pertaining to him by reason of his
position or conferred upon him by the former. Nevertheless, if the amounts

claimed were invested for the benefit of the vessel, the responsibility therefor
shall devolve upon its owner or agent.
ARTICLE 589. If two or more persons should be part owners of a merchant
vessel, a partnership shall be presumed as established by the co-owners. This
partnership shall be governed by the resolutions of the majority of the
members. If the part owners should not be more than two, the disagreement of
views, if any, shall be decided by the vote of the member having the largest
interest. If the interests are equal, it should be decided by lot. The person
having the smallest share in the ownership shall have one vote; and
proportionately the other part owners as many votes as they have parts equal
to the smallest one. aisadc A vessel may not be detained, attached or levied
upon in execution in its entirety, for the private debts of a part owner, but the
proceedings shall be limited to the interest which the debtor may have in the
vessel, without interfering with the navigation.
ARTICLE 590. The co-owners of a vessel shall be civilly liable in the proportion
of their interests in the common fund, for the results of the acts of the captain,
referred to in Article 587. Each co-owner may exempt himself from this liability
by the abandonment, before a notary, of the part of the vessel belonging to him.
ARTICLE 591. All the part owners shall be liable, in proportion to their
respective ownership, for the expenses for repairing the vessel, and for other
expenses which are incurred by virtue of a resolution of the majority. They
shall likewise be liable in the same proportion for the expenses for the
maintenance, equipment, and provisioning of the vessel, necessary for
navigation.
ARTICLE 592. The resolution of the majority with regard to the repair,
equipment, and provisioning of the vessel in the port of departure shall bind
the minority, unless the minority members renounce their interests, which
must be acquired by the other co-owners, after a judicial appraisement of the
value of the portion or portions assigned. The resolutions of the majority
relating to the dissolution of the partnership and sale of the vessel shall also be
binding on the minority. The sale of the vessel must be made at public auction,
subject to the provisions of the law of civil procedure, unless the co-owners
unanimously agree otherwise, saying always the right of repurchase and
redemption provided for in Article 575.
ARTICLE 593. The owners of a vessel shall have preference in her charter over
other persons, under the same conditions and price. If two or more of them
should claim this right, the one having the greater interest shall be preferred;
and should they have equal interests, the matter shall be decided by lot.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 8
ARTICLE 594. The co-owners shall elect the manager who is to represent them
in the capacity of ship agent. The appointment of director or ship agent shall be
revocable at the will of the members.
ARTICLE 595. The ship agent, whether he is at the same time the owner of the
vessel, or a manager for an owner or for an association of co-owners, must have
the capacity to trade and must be recorded in the merchant's registry of the
province. The ship agent shall represent the ownership of the vessel, and may,
in his own name and in such capacity, take judicial and extrajudicial steps in
matters relating to commerce.
ARTICLE 596. The ship agent may discharge the duties of captain of the vessel,
subject in every case to the provision of Article 609. If two or more co-owners
apply for the position of captain, the disagreement shall be decided by a vote of
the members; and if the vote should result in a tie, it shall be decided in favor of
the co-owner having the larger interest in the vessel. If the interests of the
applicants should be equal, and there should be a tie, the matter shall be
decided by lot.
ARTICLE 597. The ship agent shall designate and come to terms with the
captain, and shall contract in the name of the owners, who shall be bound in all
that refer to repairs, details of equipment, armament, provisions of food and
fuel, and freight of the vessel, and, in general, in all that relate to the
requirements of navigation.
ARTICLE 598. The ship agent may not order a new voyage, or make contracts
for a new charter, or insure the vessel, without the authorization of its owner or
resolution of the majority of the coowners, unless these powers were granted
him in the certificate of his appointment.
If he insures the vessel without authorization therefore, he shall be subsidiarily
liable for the solvency of the insurer.
ARTICLE 599. The ship agent managing for an association shall render to his
associates an account of the results of each voyage of the vessel, without
prejudice to always having the books and correspondence relating to the vessel
and to its voyages at their disposal.
ARTICLE 600. After the account of the managing agent has been approved by a
relative majority, the co-owners shall pay the expenses in proportion to their
interest, without prejudice to the civil or criminal actions which the minority
may deem fit to institute afterwards. In order to enforce the payment, the

managing agent shall be entitled to an executory action ("accion ejecutiva"),
which shall be instituted by virtue of a resolution of the majority, and without
further proceedings than the acknowledgment of the signatures of the persons
who voted for the resolution.
ARTICLE 601. Should there be any profits, the co-owners may demand of the
managing agent the amount corresponding to their interests by means of an
executory action ("accion ejecutiva"), without any other requisite than the
acknowledgment of the signatures on the instrument approving the account.
ARTICLE 602. The ship agent shall indemnify the captain for all the expenses he
may have incurred with funds of his own or of others, for the benefit of the
vessel.
ARTICLE 603. Before the vessel sets out to sea the ship agent may at his
discretion discharge the captain and members of the crew whose contracts are
not for a definite period or voyage, paying them the salaries earned according
to their contracts, and without any indemnity whatsoever, unless there is an
express and specific agreement in respect thereto.
ARTICLE 604. If the captain or any other member of the crew should be
discharged during the voyage, they shall receive their salary until they return to
the port where the contract was made, unless there should be just cause for the
discharge, all in accordance with Article 636 and following of this Code.
ARTICLE 605. If the contracts of the captain and members of the crew with the
ship agent should be for a definite period or voyage, they may not be
discharged until after the fulfillment of their contracts, except by reason of
insubordination in serious matters, robbery, theft, habitual drunkenness, or
damage caused to the vessel or to its cargo through malice or manifest or
proven negligence.
ARTICLE 606. If the captain should be a co-owner of the vessel, he may not be
discharged unless the ship agent returns to him the amount of his interest
therein, which, in the absence of agreement between the parties, shall be
appraised by experts appointed in the manner established in the law of civil
procedure.
ARTICLE 607. If the captain who is a co-owner should have obtained the
command of the vessel by virtue of a special agreement contained in the
articles of association, he may not be deprived of his office except for the causes
mentioned in Article 605.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 9
ARTICLE 608. In case of the voluntary sale of the vessel, all contracts between
the ship agent and the captain shall terminate, reserving to the latter his right
to the indemnity which may pertain to him, according to the agreements made
with the ship agent. They vessel sold shall remain subject to the security of the
payment of said indemnity if, after the action against the vendor has been
instituted, the latter is found to be insolvent.
SECTION TWO
CAPTAINS AND MASTERS OF VESSELS
ARTICLE 609. Captains, masters or patrons of vessels must be Filipinos, have
legal capacity to contract in accordance with this code, and prove the skill,
capacity, and qualifications necessary to command and direct the vessel, as
established by marine or navigation laws, ordinances, or regulations, and must
not be disqualified according to the same for the discharge of the duties of the
position.
If the owner of a vessel desires to be the captain thereof, without having the
legal qualifications therefor, he shall limit himself to the financial
administration of the vessel, and shall intrust the navigation to a person
possessing the qualifications required by said ordinances and regulations.
ARTICLE 610. The following powers shall be inherent in the position of captain,
master or patron of a vessel: 1. To appoint or make contracts with the crew in
the absence of the ship agent, and to propose said crew, should said agent be
present; but the ship agent may not employ any member against the captain's
express refusal. 2. To command the crew and direct the vessel to the port of its
destination, in accordance with the instructions he may have received from the
ship agent. 3. To impose, in accordance with the contracts and with the laws
and regulations of the merchant marine, and when on board the vessel,
correctional punishment upon those who fail to comply with his orders or are
wanting in discipline, holding a preliminary hearing on the crimes committed
on board the vessel on the seas, which crimes shall be turned over to the
authorities having jurisdiction over the same at the first port touched. 4. To
make contracts for the charter of the vessel in the absence of the ship agent or
of its consignee, acting in accordance with the instructions received and
protecting the interests of the owner with utmost care. 5. To adopt all proper
measures to keep the vessel well supplied and equipped, purchasing all that
may be necessary for the purpose, provided there is no time to request
instruction from the ship agent. 6. To order, in similar urgent cases while on a
voyage, the repairs on the hull and engines of the vessel and in its rigging and
equipment, which are absolutely necessary to enable it to continue and finish

its voyage; but if he should arrive at a point where there is a consignee of the
vessel, he shall act in concurrence with the latter.
ARTICLE 611. In order to comply with the obligations mentioned in the
preceding article, the captain, when he has no funds and does not expect to
receive any from the ship agent, shall obtain the same in the successive order
stated below:
1. By requesting said funds from the consignee of the vessel or
correspondents of the ship agent.
2. By applying to the consignees of the cargo or to those interested therein.
3. By drawing on the ship agent.
4. By borrowing the amount required by means of a loan on bottomry.
5. By selling a sufficient amount of the cargo to cover the sum absolutely
indispensable for the repair of the vessel and to enable it to continue its voyage.
In these two last cases he must apply to the judicial authority of the port, if in
the Philippines, and to the consul of the Republic of the Philippines if in a
foreign country, and where there is none, to the local authority, proceeding in
accordance with the provisions of Article 583, and with the provisions of the
law of civil procedure.
ARTICLE 612. The following obligations shall be inherent in the office of
captain:
1. To have on board before starting on a voyage a detailed inventory of the
hull, engines, rigging, spare-masts, tackle, and other equipment of the vessel;
the royal or the navigation certificate; the roll of the persons who make up the
crew of the vessel, and the contracts entered into with them; the lists of
passengers; the bill of health; the certificate of the registry proving the
ownership of the vessel and all the obligations which encumber the same up to
that date; the charter parties or authenticated copies thereof; the invoices or
manifests of the cargo, and the memorandum of the visit or inspection by
experts, should it have been made at the port of departure.
2. To have a copy of this code on board.
3. To have three folioed and stamped books, placing at the beginning of each
one a memorandum of the number of folios it contains, signed by the maritime
authority, and in his absence by the competent authority. In the first book,
which shall be called "log book," he shall enter day by day the condition of the
atmosphere, the prevailing winds, the courses taken, the rigging carried, the
power of the engines used in navigation, the distances covered, the maneuvers
executed, and other incidents of navigation; he shall also enter the damage
suffered by the vessel in her hull, engines, rigging, and tackle, no matter what
its cause may be, as well as the impairment and damage suffered by cargo, and
the effect and importance of the jettison, should there be any; and in cases of
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 10
serious decisions which require the advice or a meeting of the officers of the
vessel, or even of the crew and passengers, he shall record the decisions
adopted. For the information indicated he shall make use of the binnacle book
and of the steam of engine book kept by the engineer. In the second book called
the "accounting book," he shall record all the amounts collected and paid for
the account of the vessel, entering specifically article by article, the source of
the collection and the amounts spent for provisions, repairs, acquisitions of
equipment or goods, fuel, food, outfits, wages, and other expenses of whatever
nature they may be. He shall furthermore enter therein a list of all the members
of the crew, stating their domiciles, their wages and salaries, and the amounts
they may have received on account, directly or by delivery to their families. In
the third book, called "freight book," he shall record the loading and discharge
of all the goods, stating their marks and packages, names of the shippers and of
the consignees, ports of loading and unloading, and the freightage they give. In
this same book he shall record the names and places of sailing of the
passengers, the number of packages in their baggage, and the price of passage.
4. Before receiving cargo, to make with the officers of the crew and two
experts, if required by the shippers and passengers, an examination of the
vessel, in order to ascertain whether it is water-tight, with the rigging and
engines in good condition, and with the equipment required for good
navigation, preserving under his responsibility a certificate of the
memorandum of his inspection, signed by all those who may have taken part
therein. The experts shall be appointed, one by the captain of the vessel and
another by those who request its examination, and in case of disagreement a
third shall be appointed by the marine authority of the port or by the authority,
exercising his functions.
5. To remain constantly on board the vessel with the crew while the cargo is
being taken on board and to carefully watch the stowage thereof; not to
consent to the loading of any merchandise or matter of a dangerous character,
such as inflammable or explosive substances, without the precautions which
are recommended for their packing, handling and isolation; not to permit the
carriage on deck of any cargo which by reason of its arrangement, volume, or
weight makes the work of the sailors difficult, and which might endanger the
safety of the vessel; and if, on account of the nature of the merchandise, the
special character of the shipment, and principally the favorable season in which
it is undertaken, merchandise may be carried on deck, he must hear the opinion
of the officers of the vessel and have the consent of the shippers and of the ship
agent.
6. To demand a pilot at the expense of the vessel whenever required by the
navigation, and principally when he has to enter a port, canal, or river, or has to
take a roadstead or anchoring place with which neither he nor the officers and
crew are acquainted.

7. To be on deck on reaching land and to take command on entering and
leaving ports, canals, roadsteads, and rivers, unless there is a pilot on board
discharging his duties. He shall not spend the night away from the vessel except
for serious causes or by reason of official business.
8. To present himself, when making a port in distress, to the maritime
authority if in the Philippines and to the consul of the Republic of the
Philippines if in a foreign country, before twentyfour hours have elapsed, and
to make a statement of the name registry, and port of departure of the vessel, of
its cargo, and the cause of arrival which declaration shall be visaed by the
authority or the consul, if after examining the same it is found to be acceptable,
giving the captain the proper certificate proving his arrival in distress and the
reasons therefor. In the absence of the maritime authority or of the consul, the
declaration must be made before the local authority.
9. To take the necessary steps before the competent authority in order to
record in the certificate of the vessel in the registry of vessels the obligations
which he may contract in accordance with Article 583.
10. To place under good care and custody all the papers and belongings of any
members of the crew who might die on the vessel, drawing up a detailed
inventory, in the presence of passengers, or, in their absence, of members of the
crew as witnesses.
11. To conduct himself according to the rules and precepts contained in the
instructions of the ship agent, being liable for all that which he may do in
violation thereof.
12. To inform the ship agent from the port at which the vessel arrives, of the
reason of his arrival, taking advantage of the semaphore, telegraph, mail, etc., as
the case may be; to notify him of the cargo he may have received, stating the
names and domiciles of the shippers, freightage earned, and amounts borrowed
on bottomry loan; to advise him of his departure, and of any operation and date
which may be of interest to him.
13. To observe the rules with respect to situation, lights and maneuvers in
order to avoid collisions.
14. To remain on board, in case the vessel is in danger, until all hope to save it
is lost, and before abandoning it, to hear the officers of the crew, abiding by the
decision of the majority; and if the boats are to be taken to, he shall take with
him, before anything else, the books and papers, and then the articles of most
value, being obliged to prove, in case of the loss of the books and papers, that he
did all he could to save them.
15. In case of wreck, to make the proper protest in due form at the first port of
arrival, before the competent authority or the Philippine consul, within twenty-
four hours, specifying therein all the incidents of the wreck, in accordance with
subdivision 8 of this article. 16. To comply with the obligations imposed by the
laws and regulations on navigation, customs, health, and others.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 11
ARTICLE 613. A captain who navigates for freight in common or on shares may
not make any separate transaction for his own account; and should he do so,
the profit which may accrue shall belong to the other persons interested, and
the losses shall be borne by him exclusively.
ARTICLE 614. A captain who, having made an agreement to make a voyage, fails
to perform his undertaking, without prevented by fortuitous accident or force
majeure, shall indemnify for all the losses which he may cause without
prejudice to the criminal penalties which may be proper.
ARTICLE 615. Without the consent of the agent, the captain cannot have
himself substituted by another person; and should he do so, besides being
liable for all the acts of the substitute and bound to the indemnities mentioned
in the foregoing articles, the captain as well as the substitute may be discharged
by the ship agent.
ARTICLE 616. If the provisions and fuel of the vessel should be consumed
before arriving at the port of destination, the captain shall order, with the
consent of the officers of the same, the arrival at the nearest port to get a supply
of either; but if there are persons on board who have provisions of their own,
he may force them to deliver said provision for the common consumption of all
those who may be on board, paying the price thereof at the same time, or at the
latest, at the first port reached.
ARTICLE 617. The captain may not contract loans on respondentia secured by
the cargo; and should he do so, the contracts shall be void. Neither may he
borrow money on bottomry for his own transactions, except on the portion of
the vessel he owns, provided no money has been previously borrowed on the
whole vessel, and there does not exist any other kind of lien or obligation
chargeable against the vessel. If he may do so, he must state what interest he
has in the vessel. In case of violation of this article, the principal, interest, and
costs shall be for the personal account of the captain, and the ship agent may
furthermore discharge him.
ARTICLE 618. The captain shall be civilly liable to the ship agent, and the latter
to the third persons who may have made contracts with the former;
1. For all the damages suffered by the vessel and its cargo by reason of want
of skill or negligence on his part. If a misdemeanor or crime has been
committed, he shall be liable in accordance with the Penal Code.
2. For all the thefts committed by the crew, reserving his right of action
against the guilty parties.
3. For the losses, fines, and confiscations imposed an account of violation of
customs, police, health, and navigation laws and regulations.

4. For the losses and damages caused by mutinies on board the vessel or by
reason of faults committed by the crew in the service and defense of the same,
if he does not prove that he made timely use of all his authority to prevent or
avoid them.
5. For those caused by the misuse of the powers and the non-fulfillment of the
obligations pertaining to him in accordance with Articles 610 and 612.
6. For those arising by reason of his going out of his course or taking a course
which he should not have taken without sufficient cause, in the opinion of the
officers of the vessel, at a meeting with the shippers or supercargoes who may
be on board. No exceptions whatsoever shall exempt him from this obligation.
7. For those arising by reason of his voluntarily entering a port other than
that of his destination, outside of the cases or without the formalities referred
to in Article 612. 8. For those arising by reason of non-observance of the
provisions contained in the regulations on situation of lights and maneuvers for
the purpose of preventing collisions.
ARTICLE 619. The captain shall be liable for the cargo from the time it is
delivered to him at the dock or afloat alongside the at the port of loading, until
he delivers it on the shore or on the discharging wharf at the port of unloading,
unless the contrary has been expressly agreed upon.
ARTICLE 620. The captain shall not be liable for the damages caused to the
vessel or to the cargo by force majeure; but he shall always be so for those
arising through his own fault, no agreement to the contrary being valid. Neither
shall he be personally liable for the obligations he may have contracted for the
repair, equipment, and provisioning of the vessel, which shall devolve upon the
ship agent, unless the former has expressly bound himself personally or has
signed a bill of exchange or promissory note in his name.
ARTICLE 621. A captain who borrows money on the hull, engine, rigging or
tackle of the vessel, or pledges or sells merchandise or provisions outside of the
cases and without the formalities prescribed in this Code, shall be liable for the
principal, interests, and costs, and shall indemnify for the damages he may
cause. He who commits fraud in his accounts shall pay the amount defrauded
and shall be subject to the provisions of the Penal Code.
ARTICLE 622. If while on a voyage the captain should learn of the appearance
of privateers or men of war against his flag, he shall be obliged to make the
nearest neutral port, inform his agent or shippers, and await an occasion to sail
under convoy, or until the danger is over or he has received express orders
from the ship agent or the shippers.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 12
ARTICLE 623. If he should be attacked by a privateer, and, after having tried to
avoid the encounter and having resisted the delivery of the effects of the vessel
or its cargo, they should be forcibly taken away from him, or he should be
obliged to deliver them, he shall make an entry thereof in his freight book and
shall prove the fact before the competent authority at the first port he touches.
After the force majeure has been proved, he shall be exempted from liability.
ARTICLE 624. A captain whose vessel has gone through a hurricane or who
believes that the cargo has suffered damages or averages, shall make a protest
thereon before the competent authority at the first port he touches, within
twenty-four hours following his arrival and shall ratify it within the same
period when he arrives at his destination, immediately proceeding with the
proof of the facts, and he may not open the hatches until after this has been
done. The captain shall proceed in the same manner, if, the vessel having been
wrecked; he is saved alone or with part of his crew, in which case he shall
appear before the nearest authority, and make a sworn statement of facts. The
authority or the consul shall verify the said facts receiving sworn statements of
the members of the crew and passengers who may have been saved; and taking
such other steps as may assist in arriving at the facts he shall make a statement
of the result of the proceedings in the log book and in that of the sailing mate,
and shall deliver to the captain the original record of the proceedings, stamped
and folioed, with a memorandum of the folios, which he must rubricate, in
order that it may be presented to the judge or court of the port of destination.
The statement of the captain shall be accepted if it is in accordance with those
of the crew and passengers; if they disagree, the latter shall be accepted, always
saying proof to the contrary.
ARTICLE 625. The captain, under his personal responsibility as soon as he
arrives at the port of destination, should get the necessary permission from the
health and customs officers, and perform the other formalities required by the
regulations of the administration, delivering the cargo without any defalcation,
to the consignee, and in a proper case, the vessel, rigging, and freightage to the
ship agent. If by reason of the absence of the consignee or on account of the
nonappearance of a legal holder of the bills of lading, the captain should not
know to whom he is to legally make the delivery of the cargo, he shall place it at
the disposal of the proper judge or court or authority, in order that he may
determine what is proper with regard to its deposit, preservation and custody.
SECTION THREE
OFFICERS AND CREW OF VESSELS
ARTICLE 626. In order to be a sailing mate it shall be necessary:

1. To have the qualifications required by the marine or navigation laws or
regulations.
2. Not to be disqualified in accordance therewith for the discharge of his
duties.
ARTICLE 627. The sailing mate, as the second chief of the vessel, and unless the
agent orders otherwise, shall take the place of the captain in cases of absence,
sickness, or death, and shall then assume all his powers, duties, and
responsibilities.
ARTICLE 628. The sailing mate must provide himself with charts of the seas in
which he will navigate with the astronomical tables and instruments for
observation which are in use and which are necessary for the discharge of his
duties, being liable for the accidents which may arise by reason of his omission
in this regard.
ARTICLE 629. The sailing mate shall particularly and personally keep a book,
folioed and stamped on all its pages, denominated "Binnacle Book" with a
memorandum at the beginning stating the number of folios it contains, signed
by the competent authority, and shall enter therein daily the distance, the
course travelled, the variations of the needle, the leeway, the direction and
force of the wind, the condition of the atmosphere and of the sea, the rigging
set, the latitude and longitude observed, the number of furnace heated, the
steam pressure, the number of revolutions, and under the title "incidents," the
maneuvers made, the meeting with other vessels, and all the details and
incidents which. may occur during the voyage.
ARTICLE 630. In order to change the course and to take the one most
convenient for a good voyage of the vessel, the sailing mate shall come to an
agreement with the captain. If the latter should object, the sailing mate shall
state to him the proper observations in the presence of the other officers of the
sea. If the captain should still insist on his negative decision, the sailing mate
shall make the proper protest, signed by him and by one other officer, in the log
book, and shall obey the captain, who alone shall be responsible for the
consequences of his decision.
ARTICLE 631. The sailing mate shall be responsible for all the damages caused
to the vessel and the cargo by reason of his negligence or want of skill without
prejudice to the criminal liability which may arise, if a felony or misdemeanor
has been committed.
ARTICLE 632. The following shall be the obligations of the second mate:
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 13
1. To watch over the preservation of the hull and rigging of the vessel, and to
take charge of the preservation of the tackle and equipment which make up her
outfit, suggesting to the captain the repairs necessary and the replacement of
the goods and implements which are rendered useless and are lost.
2. To take care that the cargo is well arranged, keeping the vessel always
ready for maneuver.
3. To preserve order, discipline, and good service among the crew, requesting
the necessary orders and Instructions of the captain, and giving him prompt
information of any occurrence in which the intervention of his authority may
be necessary.
4. To assign to each sailor the work he is to do on board, in accordance with
the instruction received and to see that it is promptly and accurately carried
out.
5. To take charge under inventory of the rigging and all the equipment of the
vessel, if it should be laid up, unless the ship agent has ordered otherwise.
With regard to engineers the following rules shall govern:
1. In order to be taken on board as a marine engineer forming part of the
complement of a merchant vessel, it shall be necessary to have the
qualifications which the laws and regulations require, and not be disqualified in
accordance therewith for the discharge of his duties. Engineers shall be
considered officers of the vessel but they shall have no authority or
intervention except in matters referring to the motor apparatus.
2. When there are two or more engineers on board a vessel, one of them shall
be the chief, and the other engineers and all the personnel of the engines shall
be under his orders; he shall also have charge of the motor apparatus, the spare
parts, the instruments and tools pertaining thereto, the fuel, the lubricating
material and, finally, whatever is entrusted to an engineer on board a vessel.
3. He shall keep the engines and boilers in good condition and state of
cleanliness, and shall order what may be proper in order that they may always
be ready to work with regularity, being liable for the accidents or damages
which his negligence or want of skill may cause to the motor apparatus, to the
vessel and to the cargo, without prejudice to the criminal liability which may be
proper if there has been a felony or misdemeanor.
4. He shall not make any change in the motor apparatus, or proceed to repair
the averages he may have noticed in the same, or change the normal speed of
its movement without the prior authorization of the captain., to whom, if he
should object to their being made, he shall state the proper observations in the
presence of the other engineers or officers; and if, notwithstanding this, the
captain should insist on his objection, the chief engineer shall make the proper
protests, entering the same in the engine book, and shall obey the captain, who,
alone shall be responsible for the consequences of his decision.

5. He shall inform the captain of any average which may occur in the motor
apparatus, and shall advise him whenever it may be necessary to stop the
engines for some time, or when any other incident occurs in his department of
which the captain should be immediately informed, besides frequently advising
him of the consumption of fuel and lubricating material. 6. He shall keep a book
or registry called the "engine book," in which shall be entered all the date
referring to the work of the engines, such as, for example, the number of
furnaces heated, the vacuum in the condenser, the temperature, the degree of
saturation of the water in the boilers the consumption of fuel and lubricating
material, and under the heading of "noteworthy occurrences," the averages and
maladjustments which occur in the engines and boilers, the causes thereof and
the means employed to repair the same likewise, the force and direction of the
wind, the rigging set and the speed of the vessel shall be stated, taking the
information from the Binnacle Book.
ARTICLE 633. The second mate shall take command of the vessel in case of the
inability or disqualification of the captain and the sailing mate, assuming in
such case their powers and responsibility.
ARTICLE 634. The captain may make up the crew of his vessel with such
number of men as he may consider proper, and in the absence of Filipino
sailors, he may take on foreigners residing in the country, the number thereof
not to exceed one-fifth of the crew. If in foreign ports the captain should not
find a sufficient number of Filipino sailors, he may complete the crew with
foreigners, with the consent of the consul or marine authorities. The agreement
which the captain may make with the members of the crew and others who go
to make up the complement of the vessel, to which reference is made in Article
612, must be reduced to writing in the account book, without the intervention
of a notary public or clerk of court ("escribano"), signed by the parties thereto
and visaed by the marine authority if they be executed in Philippine territory or
by the consuls or consular agents of the Republic of the Philippines if executed
abroad, stating therein all the obligations which each one contracts and all the
rights he acquires said authorities taking care that these obligations and rights
are recorded in a clear and definite manner which give no room for doubts or
claims.
The captain shall take care to read to them the articles of this Code which
concern them, stating in said document that they were read. If the book
contains the requisites prescribed in Article 612, and there should not appear
any signs of alterations in its entries, it shall be admitted as evidence in
questions which may arise between the captain and the crew with respect to
the agreements contained therein and the amounts paid on account of the
same. Every member of the crew may demand of the captain a copy, signed by
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 14
the latter, of the agreement and of the liquidation of his wages, as they appear
in the book.
ARTICLE 635. A seaman who has been contracted to serve on a vessel may not
rescind his contract or fail to comply therewith except by reason of a legitimate
impediment which may have happened to him. Neither may he transfer from
the service of one vessel to another without obtaining the written permission of
the captain of the vessel on which he may be. If, without obtaining said
permission, the seaman who has signed for one vessel should sign for another
one, the second contract shall be void, and the captain may choose between
forcing him to fulfill the service to which he first bound himself, or at his
expense to look for a person to substitute him. Furthermore, he shall lose the
wages earned on his first contract, to the benefit of the vessel for which he had
signed. A captain who, knowing that a seaman is in the service of another
vessel, should have made a new agreement with him without having required
of him the permission referred to in the preceding paragraphs, shall be
subsidiarily responsible to the captain of the vessel to which the seaman first
belonged, for that part of the indemnity, referred to in the third paragraph of
this article, which the seaman may not be able to pay.
ARTICLE 636. If there is no fixed period for which a seaman has been
contracted he may not be discharged until the end of the return voyage to the
port where he enlisted.
ARTICLE 637. Neither may the captain discharge a seaman during the time of
his contract except for just cause, the following being considered as such:
1. The perpetration of a crime which disturbs order on the vessel.
2. Repeated insubordination, want of discipline, or non-fulfillment of the
service.
3. Repeated incapacity and negligence in the fulfillment of the service he
should render.
4. Habitual drunkenness.
5. Any occurrence which incapacitates the seaman to perform the work
entrusted to him, with the exception of that provided in Article 644.
6. Desertion. The captain may, however, before getting out on a voyage and
without giving any reason, refuse to permit a seaman whom he may have
engaged to go on board, and leave him on land, in which case he will be obliged
to pay him his wages as if he had rendered services. This indemnity shall be
paid from the funds of the vessel if the captain should have acted for reasons of
prudence and in the interest of the safety and good services of the farmer.
Should this not be the case, it shall be paid by the captain personally. aisadc
After the voyage has begun, during the same, and until the conclusion thereof,
the captain may not abandon any member of his crew on land or on sea, unless,

by reason of some crime, his imprisonment and delivery to the competent
authority in the first port touched should be proper, a matter obligatory for the
captain.
ARTICLE 638. If, after the crew has been engaged, the voyage is revoked by the
will of the ship agent or of the charterers before or after the vessel has put to
sea, or if the vessel is for the same reason given a destination different from
that fixed in the agreement with the crew, the latter shall be indemnified on
account of the rescission of the contract, according to the cases follows:
1. If the revocation of the voyage should be decided upon before the
departure of the vessel from the port, each sailor engaged shall be given one
month's salary, besides what may be due him, in accordance with his contract,
for the services rendered to the vessel up to the date of the revocation.
2. If the agreement should have been for a fixed amount for the whole voyage,
that which may be due for said month and days shall be determined in
proportion to the approximate number of days the voyage should have lasted,
in the judgment of experts, in the manner established in the law of Civil
Procedure; and if the proposed voyage should be of such short duration that it
is calculated at approximately one month, the indemnity shall be fixed for
fifteen days, discounting in all cases the sums advanced.
3. If the revocation should take place after the vessel has put to sea, the
seamen engaged for a fixed amount for the voyage shall receive in full the
salary which may have been offered them as if the voyage had terminated; and
those engaged by the month shall receive the amount corresponding to the
time they might have been on board and to the time they may require to arrive
at the port of destination, the captain being obliged, furthermore, to pay the
seamen in both cases, the passage to the said port or to the port of sailing of the
vessel, as may be convenient for them.
4. If the ship agent or the charterers of the vessel should give it a destination
different from that fixed in the agreement, and the members of the crew should
not agree thereto, they shall be given by way of indemnity half the amount fixed
in case No. 1, besides what may be owed them for the part of the monthly
wages corresponding to the days which have elapsed from the date of their
agreements. If they accept the change, and the voyage, on account of the greater
distance or of other reasons, should give rise to an increase of wages, the latter
shall be adjusted privately or through amicable arbitrators in case of
disagreement. Even though the voyage should be shortened to a nearer point,
this shall not give rise to a reduction in the wages agreed upon. If the
revocation or change of the voyage should come from the shippers or
charterers, the agent shall have a right to demand of them the indemnity which
may be justly due.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 15
ARTICLE 639. If the revocation of the voyage should arise from a just cause
independent of the will of the ship agent and charterers, and the vessel should
not have left the port, the members of the crew shall have no other right than to
collect the wages earned up to the day on which the revocation took place.
ARTICLE 640. The following shall be just causes for the revocation of the
voyage.
1. A declaration of war or interdiction of commerce with the power to whose
territory the vessel was bound.
2. The blockade of the port of its destination, or the breaking out of an
epidemic after the agreement.
3. The prohibition to receive in said port the goods which make up the cargo
of the vessel.
4. The detention or embargo of the same by order of the government, or for
any other reason independent of the will of the ship agent.
5. The inability of the vessel to navigate.
ARTICLE 641. If, after a voyage has been begun, any of the first three causes
mentioned in the foregoing article should occur, the sailors shall be paid at the
port which the captain may deem advisable to make for the benefit of the vessel
and cargo, according to the time they may have served thereon; but if the vessel
is to continue its voyage, the captain and the crew may mutually demand the
enforcement of the contract. In case of the occurrence of the fourth cause, the
crew shall continue to be paid half wages, if the agreement is by month; but if
the detention should exceed three months, the contract shall be rescinded and
the crew shall be paid what they should have earned according to the contract
if the voyage had been concluded. And if the agreement should be for a fixed
sum for the voyage, the contract must be complied within the terms agreed
upon. In the fifth case, the crew shall have no other right than to collect the
wages earned; but if the disability of the vessel should have been caused by the
negligence or lack of skill of the captain, engineer, or sailing mate, they shall
indemnify the crew for the damages suffered, always without prejudice to the
criminal liability which may be proper.
ARTICLE 642. If the crew have been engaged on shares, they shall not be
entitled, by reason of the revocation, delay, or greater extension of the voyage,
to anything but the proportionate part of the indemnity which way be paid into
the common funds of the vessel by the persons liable for said occurrences.
ARTICLE 643. If the vessel and her cargo should be totally lost, by reason of
capture or wreck, all rights shall be extinguished, both as regards the crew to
demand any wages whatsoever, and as regards the ship agent to recover the
advances made. If a portion of the vessel or of the cargo, or of both, should be

saved, the crew engaged on wages, including the captain, shall retain their
rights on the salvage, so far as they go, on the remainder of the vessel as well as
on the amount of the freightage of the cargo saved; but sailors who are engaged
on shares shall not have any right whatsoever on the salvage of the hull, but
only on the portion of the freightage saved. If they should have worked to
recover the remainder of the shipwrecked vessel they shall be given from the
amount of the salvage an award in proportion of the efforts made and to the
risks, encountered in order to accomplish the salvage.
ARTICLE 644. A seaman who falls sick shall not lose his right to wages during
the voyage, unless the sickness is the result of his own fault. At any rate, the
costs of the attendance and cure shall be defrayed from the common funds, in
the form of a loan. If the sickness should come from an injury received in the
service or defense of the vessel, the seaman shall be attended and cured at the
expense of the common funds deducting, before anything else, from the
proceeds of the freightage the cost of the attendance and cure.
ARTICLE 645. If a seaman should die during the voyage, his heirs will be given
the wages earned and not received according to his contract and the cause of
his death, namely — If he died a natural death and was engaged on wages, that
which may have been earned up to the date of his death shall be paid. If the
contract was for a fixed sum for the whole voyage, half the amount earned shall
be paid if the seamen died on the voyage out, and the whole amount if he died
on the return voyage. And if the contract was on shares and death occurred
after the voyage was begun, the heirs shall be paid the entire portion due the
seaman; but if the latter died before the departure of the vessel from the port,
the heirs shall not be entitled to claim anything. If death occurred in the defense
of the vessel, the seaman shall be considered as living, and his heirs shall be
paid, at the end of the voyage, the full amount of wages or the integral part of
the profits which may be due him as to others of his class. In the same manner,
the seaman captured while defending the vessel shall be considered present so
as to enjoy the same benefits as the rest; but should he have been captured on
account of carelessness or other accident not related to the service, he shall
only receive the wages due up to the day of his capture.
ARTICLE 646. The vessel with her engines, rigging, equipment, and freightage
shall he liable for the wages earned by the crew engaged per month or for the
trip, the liquidation and payment to take place between one voyage and the
other. After a new voyage has been undertaken, credits of such kind pertaining
to the preceding voyage shall lose their right of preference.
ARTICLE 647. The officers and the crew of the vessel shall be free from all
obligations if they deem it proper, in the following cases:
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 16
1. If, before beginning the voyage, the captain attempts to change it, or a naval
war with the power to which the vessel was destined occurs.
2. If a disease should break out and be officially declared an epidemic in the
port of destination.
3. If the vessel should change owner or captain.
ARTICLE 648. By the complement of a vessel shall be understood all the
persons on board, from the captain to the cabin boy, necessary for the
management, maneuvers, and service, and therefore, the complement shall
include the crew, the sailing mates, engineers, stokers and other employees on
board not having specific designations; but it shall not include the passengers
or the persons whom the vessel is transporting.
SECTION FOUR
SUPERCARGOES
ARTICLE 649. Supercargoes shall discharge on board the vessel the
administrative duties which the ship agent or the shippers may have assigned
to them; they shall keep an account and record of their transactions in a book
which shall have the same conditions and requisites as required for the
accounting book of the captain, and they shall respect the latter in his capacity
as chief of the vessel. cdtai The powers and responsibilities of the captain shall
cease, when there is a supercargo, with regard to that part of the
administration legitimately conferred upon the latter, but shall continue in
force for all acts which are inseparable from his authority and office.
ARTICLE 650. All the provisions contained in the second section of Title III,
Book II, with regard to capacity, manner of making contracts, and liabilities of
factors, shall be applicable to supercargoes.
ARTICLE 651. Supercargoes may not, without special authorization or
agreement, make any transaction for their own account during the voyage, with
the exception of the ventures which, in accordance with the custom of the port
of destination, they are permitted to do. Neither shall they be permitted to
invest in the return trip more than the profits from the ventures, unless there is
an express authorization from the principals.

XI. 11TH WEEK (OVERLAND TRANSPORTATION; VESSELS; REAL
AND HYPOTHECARY NATURE OF MARITIME LAW; PERSONS IN
MARITIME LAWL MARITI ME ACCIDENTS; MARITIME CONTRACTS)
STUDY: CODE OF COMMERCE, ARTICLES 652-736, 806-845
ARTICLES 652-736
TITLE THREE SPECIAL CONTRACTS OF MARITIME COMMERCE SECTION ONE
CHARTER PARTIES PART I FORMS AND EFFECTS OF CHARTER PARTIES
ARTICLE 652. A charter party must be drawn in duplicate and signed by the
contracting parties, and when either does not know how or is not able to do so,
by two witnesses at his request. The charter party shall contain, besides the
conditions freely stipulated, the following circumstances:
1. The kind, name, and tonnage of the vessel.
2. Its flag and port of registry.
3. The name, surname, and domicile of the captain.
4. The name, surname, and domicile of the ship agent, if the latter should
make the charter party.
5. The name, surname, and domicile of the charterer; and if he states that he
is acting by commission, that of the person for whose account he makes the
contract.
6. The port of loading and unloading.
7. The capacity, number of tons or the weight or measurement which they
respectively bind themselves to load and to transport, or whether the charter
party is total.
8. The freightage to be paid, stating whether it is to be a fixed amount for the
voyage or so much per month, or for the space to be occupied, or for the weight
or measure of the goods of which the cargo consists, or in any other manner
whatsoever agreed upon.
9. The amount of primage to be paid to the captain.
10. The days agreed upon for loading and unloading.
11. The lay days and extra lay days to be allowed and the demurrage to be
paid for each of them.
ARTICLE 653. If the cargo should be received without the charter party having
been signed, the contract shall be understood as executed in accordance with
what appears in the bill of lading, the sole evidence of title with regard to the
cargo for determining the rights and obligations of the ship agent, of the
captain, and of the charterer.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 17
ARTICLE 654. The charter parties executed with the intervention of a broker,
who certifies to the authenticity of the signatures of the contracting parties
because they were signed in his presence, shall be full evidence in court; and if
they should be conflicting, that which accords with one which the broker must
keep in his registry, if kept in accordance with law, shall govern. The contracts
shall also be admitted as evidence, even though a broker has not taken part
therein, if the contracting parties acknowledge the signatures to be the same as
their own. If no broker has intervened in the charter party and the signatures
are not acknowledged, doubts shall be decided by what is provided for in the
bill of lading and in the absence thereof, by the proofs submitted by the parties.
ARTICLE 655. Charter parties executed by the captain in the absence of the ship
agent shall be valid and effective, even though in executing them he should
have acted in violation of the orders and instructions of the ship agent or
shipowner; but the latter shall have a right of action against the captain for
indemnification of damages.
ARTICLE 656. If in the charter party the time in which the loading and
unloading are to take place is not stated, the usages of the port where these acts
take place shall be observed. After the stipulated or the customary period has
passed, and there is no express proviso in the charter party fixing the
indemnity for the delay, the captain shall be entitled to demand demurrage for
the lay days and extra lay days which may have elapsed in loading and
unloading.
ARTICLE 657. If during the voyage the vessel should be rendered unseaworthy,
the captain shall be obliged to charter at his expense another one in good
condition to receive the cargo and carry it to its destination, for which purpose
he shall be obliged to look for a vessel not only at the port of arrival but also in
the neighborhood within distance of 150 kilometers. If the captain, through
indolence or malice, should not furnish a vessel to its destination, the shippers,
after requiring the captain to charter a vessel within an inextendible period,
may charter one and petition the judicial authority to summarily approve the
charter party which they may have made. The same authority shall judicially
("por la via de appremio") compel the captain, to carry out, for his account and
under his responsibility, the charter made by the shippers. If the captain,
notwithstanding his diligence, should not find a vessel for the charter, he shall
deposit the cargo at the disposal of the shippers, to whom he shall
communicate the facts on the first opportunity which presents itself, the freight
being adjusted in such cases by the distance covered by the vessel, with no
right to any indemnification whatsoever.

ARTICLE 658. The freightage shall accrue according to the conditions stipulated
in the contract, and should they not be expressed, or should they be ambiguous,
the following rules shall be observed:
1. If the vessel has been chartered by months or by days, the freightage shall
begin to run from the day the loading of the vessel is begun.
2. In charters made for a fixed period, the freightage shall begin to run from
that very day.
3. If the freightage is charged according to weight, the payment shall be made
according to gross weight, including the containers, such as barrels or any
other objects in which the cargo is contained.
ARTICLE 659. The merchandise sold by the captain to pay for the necessary
repairs to the hull, machinery or equipment, or for unavoidable and urgent
needs, shall pay freightage.
The price of this merchandise shall be fixed according to the result of the
voyage, namely:
1. If the vessel should arrive safely at the port of destination, the captain shall
pay the price which the sale of merchandise of the same kind brings at that
port.
2. If the vessel should be lost, the captain shall pay the price realized from
said merchandise in the sale. The same rule shall be observed in the payment of
the freightage, which shall be in full if the vessel arrives at her destination, and
in proportion to the distance covered if she should be lost before arrival.
ARTICLE 660. Merchandise jettisoned for the common safety shall not pay
freightage; but the amount of the latter shall be considered as general average
computing the same in proportion to the distance covered when they were
jettisoned.
ARTICLE 661. Neither merchandise lost by reason of shipwreck or stranding
nor those seized by the pirates or enemies, shall pay freightage. If the freightage
should have been paid in advance, it shall be returned, unless there is an
agreement to the contrary.
ARTICLE 662. If the vessel or the merchandise should be redeemed, or the
effects of the shipwreck be salvaged, the freightage corresponding to the
distance covered by the vessel transporting the cargo shall be paid; and should
the vessel, after being repaired, transport said merchandise to the port of
destination, the full freightage shall be paid, without prejudice to what may be
due by reason of the average.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 18
ARTICLE 663. Merchandise which suffer deterioration or diminutions on
account of inherent defects or bad quality and condition of the packing, or
because of fortuitous event, shall pay freightage in full and as stipulated in the
charter party.
ARTICLE 664. The natural increase in weight or size of the merchandise loaded
on the vessel shall accrue to the benefit of the owner, and shall pay the proper
freightage fixed in the contract for the same.
ARTICLE 665. The cargo shall be specially liable for the payment of the
freightage, expenses and duties arising therefrom, which must be reimbursed
by the shippers, as well as for the part of the general average which may
correspond to it; but it shall not be legal for the captain to delay unloading on
account of suspicion that this obligation may not be complied with. Should
there be reasons for distrust, the judge or court, at the instance of the captain,
may order the deposit of the merchandise until he has been paid in full.
ARTICLE 666. The captain may request the sale of the cargo to the amount
necessary to pay the freightage, expenses, and averages due him, reserving the
right to demand the balance due him therefor if the proceeds of the sale should
not suffice to cover his credit.
ARTICLE 667. The goods loaded shall be liable in the first place for the freight
and expenses thereof during twenty days, to be counted from the date of their
delivery or deposit. During this period, the sale of the same may be requested,
even though there be other creditors and the bankruptcy of the shipper or
consignee should occur. This right may not he made use of, however, on the
goods which, after being delivered, were turned over to a third person without
malice on the part of the latter and for a valuable consideration. cdasia
ARTICLE 668. If the consignee should not be found or should refuse to receive
the cargo, the judge or court, at the instance of the captain, shall order its
deposit and the sale of what may be necessary to pay the freightage and other
expenses on the same. The sale shall likewise be allowed when the goods
deposited run the risk of deteriorating, or by reason of their condition or other
circumstances the expenses of preservation and custody should be
disproportionate.
PART 2 RIGHTS AND OBLIGATIONS OF SHIPOWNERS
ARTICLE 669. The shipowner or the captain shall observe in charter parties the
capacity of the vessel or that expressly designated in its registry, a difference
greater than 2 per cent between that stated and her true capacity not being

permissible. If the shipowner or the captain should contract to carry a greater
amount of cargo than the vessel can carry in view of her tonnage, they shall
indemnify the shippers whose contracts they do not fulfill for the losses they
may have caused when by reason of their default, according to the following
cases, viz: If the vessel has been chartered by one shipper only, and there
should appear to be an error or fraud in her capacity, and the charterer should
not wish to rescind the contract, when he has a right to do so, the freightage
shall he reduced in proportion to the cargo which the vessel can not receive, the
person from whom the vessel is chartered being furthermore obliged to
indemnify the charterer for the losses he may have caused him. If, on the
contrary there should be several charter parties, and by reason of want of space
all the cargo contracted for cannot be loaded, and none of the charterers
desires to rescind the contract, preference shall be given to the person who has
already loaded and arranged the freight in the vessel, and the rest shall take the
places corresponding to them in the order of the dates of their contracts.
Should there be no priority, the charterers may load, if they wish, in proportion
to the amounts of weight or space for which each may have contracted, and the
person from whom the vessel was chartered shall he obliged to indemnify them
for losses and damages.
ARTICLE 670. If the person from whom the vessel is chartered, after receiving a
part of the freight, should not find sufficient to make up at least three-fifths of
the amount which the vessel may hold, at the price he may have fixed, he may
substitute for the transportation another vessel inspected and declared suitable
for the same voyage, the expenses of transfer and the increase in the price of
the charter, should there be any, being for his account. Should he not be able to
make this change, he shall undertake the voyage at the time agreed upon; and
should no time have been fixed, within fifteen days from the time the loading
began, unless otherwise stipulated. If the owner of the part of the freight
already loaded should procure some more at the same price and under similar
or proportionate conditions to those accepted for the freight received, the
person from whom the vessel is chartered or the captain can not refuse to
accept the rest of the cargo; and should he do so, the shipper shall have a right
to demand that the vessel put to sea with the cargo which it may have on board.
ARTICLE 671. After three-fifths of the vessel has been loaded, the person from
whom she is chartered may not, without the consent of the charterers or
shippers, substitute the vessel designated in the charter party by another one,
under the penalty of making himself thereby liable for all the losses and
damages occurring during the voyage to the cargo of those who did not consent
to the change.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 19
ARTICLE 672. If the vessel has been chartered in whole, the captain may not,
without the consent of the charterer, accept cargo from any other person; and
should he do so, said charterer may oblige him to unload it and to indemnify
him for the losses suffered thereby.
ARTICLE 673. The person from whom the vessel is chartered shall he liable for
all the losses caused to the charterer by reason of the voluntary delay of the
captain in putting to sea, according to the rules prescribed, provided he has
been requested, notarially or judicially, to put to sea at the proper time.
ARTICLE 674. If the charterer should carry to the vessel more cargo than that
contracted for, the excess may be admitted in accordance with the price
stipulated in the contract, if it can be well stowed without injuring the other
shippers; but if in order to load it, the vessel would be thrown out of trim, the
captain must refuse it or unload it at the expense of its owner. In the same
manner, the captain may, before leaving the port, unload merchandise
clandestinely placed on board, or transport them, if he can do so with the vessel
in trim, demanding by way of freightage the highest price which may have been
stipulated for said voyage.
ARTICLE 675. If the vessel has been chartered to receive the cargo in another
port, the captain shall appear before the consignee designated in the charter
party; and, should the latter not deliver the cargo to him, he shall inform the
charterer and wait his instructions, the lay days agreed upon or those allowed
by custom in the port beginning to run in the meantime, unless there is an
express, agreement to the contrary. Should the captain not receive an answer
within the time necessary therefor, he shall make efforts to find freight; and
should he not find any after the lay days and extra lay days have elapsed, he
shall make a protest and return to the port where the charter was made. The
charterer shall pay the freightage in full, discounting that which may have been
earned on the merchandise which may have been carried on the voyage out or
on the return trip, if carried for the account of third persons. The same shall be
done if a vessel, having been chartered for the round trip, should not be given
any cargo on its return.
ARTICLE 676. The captain shall lose the freightage and shall indemnify the
charterers if the latter should prove, even against the certificate of inspection, if
one has been made at the port of departure, that the vessel was not in a
condition to navigate at the time of receiving the cargo.
ARTICLE 677. The charter party shall subsist if a declaration of war or a
blockade should take place during the voyage, the captain not having any
instructions from the charterer. In such case the captain must proceed to the

nearest safe and neutral port, requesting and awaiting orders from the shipper,
and the expenses and salaries paid during the detention shall be paid as general
average. If, by orders of the shipper, the cargo should be discharged at the port
of arrival, the freightage for the voyage out shall be paid in full.
ARTICLE 678. If the time necessary, in the opinion of the judge or court, to
receive the orders of the shipper should have elapse, without the captain
having received any instructions, the cargo shall be deposited, and it shall be
liable for the payment of the freightage and expenses on its account during the
delay, which shall be paid from the proceeds of the part first sold.
PART 3 OBLIGATIONS OF CHARTERERS
ARTICLE 679. The charterer of an entire vessel may sub-charter the whole or
part thereof on such terms as he may consider most convenient, the captain not
being allowed to refuse to receive on board the freight delivered by the second
charterers, provided that the conditions of the first charter are not change, and
that the price agreed upon is paid in full to the person from whom the vessel is
chartered, even though the full cargo is not embarked, with the limitation
established in the next article. cdtai
ARTICLE 680. A charterer who does not complete the full cargo he bound
himself to ship shall pay the freightage of the amount he fails to ship, if the
captain does not take other freight to complete the load of the vessel, in which
case the first charterer shall pay the difference, should there be any.
ARTICLE 681. If the charterer should load goods different from those stated at
the time of executing the charter party, without the knowledge of the person
from whom the vessel was chartered or of the captain, and should thereby give
rise to losses, by reason of confiscation, embargo, detention, or other causes, to
the person from whom the vessel was chartered or to the shippers, the person
giving rise thereto shall be liable with the value of his shipment and
furthermore with his property, for the full indemnity to all those injured
through his fault.
ARTICLE 682. If the merchandise should have been shipped for the purpose of
illicit commerce, and were taken on board with the knowledge of the person
from whom the vessel was chartered or of the captain, the latter, jointly with
the owner of the same, shall be liable for all the losses which may be caused the
other shippers; and even though it may have been stipulated, they can not
demand any indemnity whatsoever from the charterer for the damaged caused
to the vessel.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 20
ARTICLE 683. In case of making a port to repair the hull, machinery, or
equipment of the vessel, the shippers must await until the vessel is repaired,
being permitted to unload it at their own expense should they deem it proper.
If, for the benefit of the cargo subject to deterioration, the shippers or the court,
or the consul, or the competent authority in a foreign country, should order the
merchandise to be unloaded, the expenses of unloading and reloading shall be
for the account of the former.
ARTICLE 684. If the charterer, without the occurrence of any of the cases of
force majeure mentioned in the foregoing article, should wish to unload his
merchandise before arriving at the port of destination, he shall pay the full
freightage, the expenses of the arrival made at his request, and the losses and
damages caused the other shippers, should there be any.
ARTICLE 685. In charters for transportation of general freight, any of the
shippers may unload the merchandise before the beginning of the voyage,
paying one-half of the freightage, the expense of stowing and restowing the
cargo, and any other damage which for his reason he may cause the other
shippers.
ARTICLE 686. After the vessel has been unloaded and the cargo placed at the
disposal of the consignee, the latter must immediately pay the captain the
freightage due and the other expenses for which said cargo may be liable. The
primage must be paid in the same proportion and at the same time as the
freightage, all the changes and modifications to which the latter should be
subject also governing the former.
ARTICLE 687. The charterers and shippers may not abandon merchandise
damaged on account of inherent defect or fortuitous event, for the payment of
the freightage and other expenses.
The abandonment shall be proper, however, if the cargo should consist of
liquids and they have leaked out, nothing remaining in the containers but one-
fourth part of their contents.
PART 4 TOTAL OR PARTIAL RESCISSION OF CHARTER PARTIES
ARTICLE 688. A charter party may be rescinded at the request of the charterer:
1. If before loading the vessel he should not agree with that stated in the
certificate of tonnage, or if there should be an error in the statement of the flag
under which she sails.
2. If the vessel should not be placed at the disposal of the charterer within the
period and in the manner agreed upon.

3. If after the vessel has put to sea, she should return to the port of departure,
on account of risk from pirates, enemies, or bad weather, and the shippers
should agree to unload her. In the second and third cases the person from
whom the vessel was chartered shall indemnify the charterer for the voyage
out.
4. If the charter should have been made by the months, the charterers shall
pay the full freightage for one month, if the voyage is for a port in the same
waters, and for two months, if for a port in different waters. From one port to
another of the Philippines and adjacent islands, the freightage for one month
only shall be paid.
5. If the vessel should make a port during the voyage in order to make urgent
repairs, and the charterers should prefer to dispose of the merchandise. When
the delay does not exceed thirty days, the shippers shall pay the full freightage
for the voyage out. Should the delay exceed thirty days, they shall only pay the
freightage in proportion to the distance covered by the vessel.
ARTICLE 689. At the request of the person from whom the vessel is chartered
the charter party may be rescinded:
1. If the charterer, at the termination of the extra lay days, does not place the
cargo alongside the vessel. In such case the charterer must pay half the freight
stipulated, besides the demurrage due for the lay days and extra lay days.
2. If the person from whom the vessel was chartered should sell it before the
charterer has begun to load it, and the purchaser should load it for his own
account. In such case the vendor shall indemnify the charterer for the losses he
may suffer. If the new owner of the vessel should not load it for his own
account, the charter party shall be respected, and the vendor shall indemnify
the purchaser if the former did not inform him of the charter pending at the
time of making the sale.
ARTICLE 690. The charter party shall be rescinded and all actions arising
therefrom shall be extinguished, if, before the vessel puts to sea from the port
of departure, any of the following cases should occur:
1. A declaration of war or interdiction of commerce with the power to whose
ports the vessel was to make its voyage.
2. A condition of blockade of the port of destination of said vessel, or the
breaking out of an epidemic after the contract was executed.
3. The prohibition to receive at the said port the merchandise constituting the
cargo of the vessel.
4. An indefinite detention, by reason of an embargo of the vessel by order of
the government, or for any other reason independent of the will of the ship
agent.
5. The inability of the vessel to navigate, without fault of the captain or ship
agent. The unloading shall be made for the account of the charterer.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 21
ARTICLE 691. If the vessel cannot put to sea on account of the closing of the
port of departure or any other temporary cause, the charter shall remain in
force, with neither one of the contracting parties having a right to claim
damages. The subsistence and wages of the crew shall be considered as general
average. During the interruption, the charterer may at the proper time and for
his own account, unload and load the merchandise, paying demurrage if he
delays the reloading after the cause for the detention has ceased.
ARTICLE 692. A charter party shall be partially rescinded, unless there is an
agreement to the contrary, and the captain shall only be entitled to the
freightage for the voyage out, if, by reason of a declaration of war, closing of
ports, or interdiction of commercial relations during the voyage, the vessel
should make the port designated for such a case in the instructions of the
charterer.
PART 5 PASSENGERS ON SEA VOYAGES
ARTICLE 693. If the passage price has not been agreed upon, the judge or court
shall summarily fix it, after a declaration of experts.
ARTICLE 694. Should the passenger not arrive on board at the time fixed, or
should leave the vessel without permission from the captain when the latter is
ready to leave the port, the captain may continue the voyage and demand the
full passage price.
ARTICLE 695. The right to passage, if issued to a specified person, may not be
transferred without the consent of the captain or of the consignee.
ARTICLE 696. If before beginning the voyage the passenger should die, his heirs
shall only be obliged to pay half of the fare agreed upon. If the expenses of
subsistence are included in the price stipulated, the judge or court, after
hearing experts if he considers it necessary, shall fix the amount which has to
be left for the benefit of the vessel. Should another passenger be received in the
place of the deceased, no payment shall be made by said heirs.
ARTICLE 697. If before the voyage is begun it is suspended through the
exclusive fault of the captain or ship agent, the passengers shall have the right
to a refund of their fares and to recover losses and damages; but if the
suspension is due to fortuitous events, or to force majeure, or to any other
cause independent of the captain or ship agent, the passengers shall only be
entitled to the return of the fare. cd

ARTICLE 698. In case a voyage already begun should be interrupted, the
passengers shall be obliged to pay the fare in proportion to the distance
covered, without right to recover for losses and damages if the interruption is
due to fortuitous event or to force majeure, but with a right to indemnity if the
interruption should have been caused by the captain exclusively. If the
interruption should be caused by the disability of the vessel, and a passenger
should agree to await the repairs, he may not be required to pay any increased
price of passage, but his living expenses during the stay shall be for his own
account. In case of delay in the departure of the vessel, the passengers have the
right to remain on board and to be furnished with food for the account of the
vessel unless the delay is due to fortuitous events or to force majeure. If the
delay should exceed ten days, passengers requesting the same shall be entitled
to the return of the fare; and if it is due exclusively to the fault of the captain or
ship agent, they may also demand indemnity for losses and damages. A vessel
exclusively devoted to the transportation of passengers must take them
directly to the port or ports of destination, no matter what the number of
passengers may be, making all the stops indicated in its itinerary.
ARTICLE 699. If the contract is rescinded, before or after the commencement of
the voyage, the captain shall have a right to claim payment of what he may have
furnished the passengers.
ARTICLE 700. In all matters pertaining to the preservation of order and
discipline on board the vessel passengers shall be subject to the orders of the
captain, without any distinction whatsoever.
ARTICLE 701. The convenience or the interest of the passengers shall not
obligate or empowers the captain to stand in shore or enter places which may
take the vessel out of her course, or to remain in the ports he must or in under
necessity of touching for a period longer than that required by the needs of
navigation.
ARTICLE 702. In the absence of an agreement to the contrary, it shall be
understood that the subsistence of the passengers during the voyage is
included in the price of the passage; but should it be for the account of the
latter, the captain shall be under obligation, in case of necessity, to furnish the
supply of food necessary for their sustenance at a reasonable price.
ARTICLE 703. A passenger shall be considered a shipper insofar as the goods he
carries on board are concerned, and the captain shall not be responsible for
what the former may keep under his immediate and special custody, unless the
damage arises from an act of the captain or of the crew.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 22
ARTICLE 704. The captain, in order to collect the passage-money and expenses
of sustenance, may retain the goods belonging to the passenger, and in case of
the sale of the same he shall be given preference over other creditors acting the
same way as in the collection of freightage.
ARTICLE 705. In case of the death of a passenger during the voyage, the captain
shall be authorized, with regard to the body, to take the steps required by the
circumstances, and shall carefully take care of the papers and goods which may
be on board belonging to the passenger, observing the provisions of case No. 10
of Article 612 with regard to members of the crew.
PART 6 BILLS OF LADING
ARTICLE 706. The captain of the vessel and the shipper shall have the
obligation of drawing up the bill of lading in which shall be stated: 1. The name,
registry, and tonnage of the vessel. 2. The name of the captain and his domicile.
3. The port of loading and that of unloading. 4. The name of the shipper. 5. The
name of the consignee, if the bill of lading is issued in the name of a specified
person. 6. The quantity, quality, number of packages and marks of the
merchandise. 7. The freightage and the primage stipulated. The bill of lading
may be issued to bearer, to order, or in the name of a specified person, and
must be signed within twenty-four hours after the cargo has been received on
board, the shipper being entitled to demand the unloading at the expense of the
captain should the latter not sign it, and, in every case, the losses and damages
suffered thereby. cdasia
ARTICLE 707. Four true copies of the original bill of lading shall be made, and
all of them shall be signed by the captain and the shipper. Of these, the shipper
shall keep one and send another to the consignee; the captain shall take two,
one for himself and another for the ship agent. There may also be drawn up as
many copies of the bill of lading as may be considered necessary by the person
interested; but when they are issued to order or to bearer, they shall be stated
in all the copies, be they the first four or the subsequent ones, the destination of
each one, stating whether it is for the agent, for the captain, for the shipper, or
for the consignee. If the copy sent to the latter should have a duplicate, this
circumstance and the fact that it is not valid except in default of the first one
must be stated therein.
ARTICLE 708. Bills of lading issued to bearer and sent to the consignee shall be
transferable by actual delivery of the instrument; and those issued to order, by
virtue of an indorsement. In either case, the person to whom the bill of lading is
transferred shall acquire all the rights and actions of the transferor or indorser
with regard to the merchandise mentioned in the same.

ARTICLE 709. A bill of lading drawn up in accordance with the provisions of
this title shall be proof as between all those interested in the cargo and
between the latter and the insurers, proof to the contrary being reserved for
the latter.
ARTICLE 710. If the bills of lading do not agree, and no change or erasure can
be observed in any of them, those possessed by the shipper or consignee signed
by the captain shall be proof against the captain or ship agent in favor of the
consignee or shipper; and those possessed by the captain or ship agent signed
by the shipper shall be proof against the shipper or consignee in favor of the
captain or ship agent.
ARTICLE 711. The legitimate holder of a bill of lading who fails to present it to
the captain of the vessel before the unloading obliging the latter thereby to
unload it and place it in deposit, shall be responsible for the expenses of
warehousing and other expenses arising therefrom.
ARTICLE 712. The captain may not by himself change the destination of the
merchandise. In admitting this change at the instance of the shipper, he must
first take up the bill of lading which he may have issued, under pain of being
liable for the cargo to the legitimate holder of the same.
ARTICLE 713. If before the delivery of the cargo a new bill of lading should be
demanded of the captain, on the allegation that the failure to present the
previous ones is due to their loss or to any other just cause, he shall be obliged
to issue it, provided that security for the value of the cargo is given to his
satisfaction, but without changing the consignment, and stating therein the
circumstances prescribed in the last paragraph of Article 707, under penalty,
should he not so state, of being held liable for said cargo if improperly delivered
through his fault.
ARTICLE 714. If before the vessel puts to sea the captain should die or should
cease to hold his position through any cause, the shippers shall have the right
to demand of the new captain the ratification of the first bills of lading, and the
latter must do so, provided that all the copies previously issued be presented or
returned to him, and it should appear from all examination of the cargo that
they are correct. The expenses arising from the examination of the cargo shall
be defrayed by the ship agent, without prejudice to the right of action of the
latter against the first captain if he ceased to be such through his own fault.
Should said examination not be made, it shall be understood that the new
captain accepts the cargo as it appears from the bills of lading issued.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 23
ARTICLE 715. Bills of lading will give rise to a most summary action or to
judicial, compulsion ("accion sumarisima o de apremios"), according to the
case, for the delivery of the cargo and the payment of the freightage and the
expenses thereby incurred.
ARTICLE 716. If several persons should present bills of lading issued to bearer
or to order, indorsed in their favor, demanding the same merchandise, the
captain shall prefer, in making delivery the person who presents the copy first
issued, except when the latter one was issued on proof of the loss of the first,
and both are presented by different persons. In such case, as well as when only
second subsequent copies, issued without this proof, are presented, the captain
shall apply to the judge or court, so that he may order the deposit of the
merchandise and their delivery, through him, to the proper person.
ARTICLE 717. The delivery of the bill of lading shall effect the cancellation of all
the provisional receipts of prior date given by the captain or his subordinates
for partial deliveries of the cargo which may have been made.
ARTICLE 718. After the cargo has been delivered the bill of lading which the
captain signed, or at least the copy by reason of which the delivery is made,
shall be returned to him, with the receipt for the merchandise mentioned
therein. The delay on the part of the consignee shall make him liable for the
damages which such delay may cause the captain.
SECTION TWO LOANS ON BOTTOMRY AND RESPONDENTIA
ARTICLE 719. A loan in which under any condition whatever, the repayment of
the sum loaned and of the premium stipulated depends upon the safe arrival in
port of the goods on which it is made, or of the price they may receive in case of
accident, shall be considered a loan on bottomry or respondentia.
ARTICLE 720. Loans on bottomry or respondentia may be executed: 1. By
means of a public instrument. 2. By means of a policy signed by the contracting
parties and the broker taking part therein. cdt 3. By means of a private
instrument. Under whichever of these forms the contract is executed, it shall be
entered in the certificate of the registry of the vessel and shall be recorded in
the registry of vessels, without which requisites the credits of this kind shall
not have, with regard to other credits, the preference which, according to their
nature, they should have, although the obligation shall be valid between the
contracting parties. The contracts made during a voyage shall be governed by
the provisions of Articles 583 and 611, and shall be effective with regard to
third persons from the date of their execution, if they should be recorded in the
registry of vessels of the port of registry of the vessel before the lapse of eight

days following its arrival. If said eight days should elapse without the record
having been made in the corresponding registry, the contracts made during the
voyage of a vessel shall produce no effect with regard to third persons, except
from the day and date of their inscription. In order that the policy of the
contracts executed in accordance with No. 2 may have binding force, they must
conform to the registry of the broker who took part therein. With respect to
those executed in accordance with No. 3 the acknowledgment of the signature
shall be required. Contracts which are not reduced to writing shall not give rise
to judicial action.
ARTICLE 721. In a contract on bottomry or respondentia the following must be
stated: 1. The kind, name, and registry of the vessel. 2. The name, surname, and
domicile of the captain. 3. The names, surnames, and domiciles of the person
giving and the person receiving the loan. 4. The amount of the loan and the
premium stipulated. 5. The time for repayment. 6. The goods pledged to secure
repayment. 7. The voyage during which the risk is run.
ARTICLE 722. The contract may be made to order, in which case they shall be
transferable by indorsement, and the indorsee shall acquire all the rights and
shall incur all the risks corresponding to the indorser.
ARTICLE 723. Loans may be made in goods and in merchandise, fixing their
value in order to determine the principal of the loan.
ARTICLE 724. The loans may be constituted jointly or separately: 1. On the hull
of the vessel. 2. On the rigging. 3. On the equipment, provisions, and fuel. 4. On
the engine, if the vessel is a steamer. 5. On the merchandise loaded. If the loan
in constituted on the hull of the vessel, the rigging, equipment and other goods,
provisions, fuel, steam engines, and the freightage earned during the voyage on
which the loan is made shall also be considered as included in the liability for
the loan. cdtai If the loan is made on the cargo, all that which constitutes the
same shall be subject to the repayment; and if on a particular object of the
vessel or of the cargo, only the object concretely and specifically mentioned
shall be liable.
ARTICLE 725. No loans on bottomry may be made on the salaries of the crew or
on the profits expected.
ARTICLE 726. If the lender should prove that he loaned an amount larger than
the value of the object liable for the bottomry loan, on account of fraudulent
measures employed by the borrower, the loan shall be valid only for the
amount at which said object is appraised by experts. The surplus principal shall
be returned with legal interests for the entire time required for repayment.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 24
ARTICLE 727. If the full amount of the loan contracted in order to load the
vessel should not be used for the cargo, the balance shall be returned before
clearing. The same procedure shall be observed with regard to the goods taken
as loan, if they were not loaded.
ARTICLE 728. The loan which the captain takes at the point of residence of the
owners of the vessel shall only affect that part thereof which belongs to the
captain, if the other owners or their agents should not have given their express
authorization therefor or should not have taken part in the transaction. If one
or more of the owners should be requested to furnish the amount necessary to
repair or provision the vessel, and they should not do so within twenty-four
hours, the interest which the parties in default may have in the vessel shall be
liable for the loan in the proper proportion. Outside of the residence of the
owners the captain may contract loans in accordance with the provisions of
Articles 583 and 611.
ARTICLE 729. Should the goods on which money is taken not be subjected to
risk, the contract shall be considered a simple loan, with the obligation on the
part of the borrower to return the principal and interest at the legal rate, if that
agreed upon should not be lower.
ARTICLE 730. Loans made during the voyage shall have preference over those
made before the clearing of the vessel, and they shall be graduated in the
inverse order of their dates. The loans for the last voyage shall have preference
over prior ones. Should several loans have been made at the same port of
arrival under stress and for the same purpose, all of them shall be paid pro rata.
ARTICLE 731. The actions pertaining to the lender shall be extinguished 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 and during the voyage designated in the contract,
and it is proven that the cargo was on board; but this shall not take place if the
loss was caused by the inherent defect of the thing, or through the fault or
malice, of the borrower, or barratry on the part of the captain, or if it was
caused by damages suffered by the vessel as a consequence of being engaged in
contraband, or if it arose from having loaded the merchandise on a vessel
different from that designated in the contract, unless this change should have
been made by reason of force majeure. Proof of the loss as well as of the
existence in the vessel of the goods declared to the lender as the object of the
loan is incumbent upon him who received the loan.
ARTICLE 732. Lenders on bottomry or respondentia shall suffer, in proportion
to their respective interest, the general average which may take place in the

goods on which the loan is made. In particular averages, in the absence of an
express agreement between the contracting parties, the lender on bottomry or
respondentia shall also contribute in proportion to his respective interest,
should it not belong to the kind of risks excepted in the foregoing article.
ARTICLE 733. Should the period during which the lender shall run the risk not
have been stated in the contract, it shall last, with regard to the vessel, engines,
rigging, and equipment, from the moment said vessel puts to sea until she
drops anchor in the port of destination; and with regard to the merchandise,
from the time they are loaded at the shore or wharf of the port of shipment
until they are unloaded in the port of consignment. aisadc
ARTICLE 734. In case of shipwreck, the amount liable for the payment of the
loan shall be reduced to the proceeds of the goods saved, after deducting the
costs of the salvage. If the loan should be on the vessel or any of its parts, the
freightage earned during the voyage for which said loan was contracted shall
also be liable for its payment, as far as it may reach.
ARTICLE 735. If the same vessel or cargo should be the object of a loan on
bottomry or respondentia and marine insurance, the value of what may be
saved in case of shipwreck shall be divided between the lender and the insurer,
in proportion to the legitimate interest of each one, taking into consideration,
for this purpose only, the principal with respect to the loan, and without
prejudice to the right of preference of other creditors in accordance with
Article 580.
ARTICLE 736. If there should be delay in repayment of the principal and
premiums of the loan, only the former shall bear of legal interest.
ARTICLES 806-845
TITLE FOUR RISKS, DAMAGES AND ACCIDENTS OF MARITIME COMMERCE
SECTION ONE AVERAGES
ARTICLE 806. For the purposes of this code the following shall be considered
averages:
1. All extraordinary or accidental expenses which may be incurred during the
voyage in order to preserve the vessel, the cargo, or both.
2. Any damages or deteriorations which the vessel may suffer from the time it
puts to sea from the port of departure until it casts anchor in the port of
destination, and those suffered by the merchandise from the time they are
loaded in the port of shipment until they are unloaded in the port of their
consignment.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 25
ARTICLE 807. The petty and ordinary expenses incident to navigation, such as
those of pilotage of coasts and ports, those of lighterage and towage, anchorage,
inspection, health, quarantine, lazaretto, and other so-called port expenses,
costs of barges and unloading until the merchandise is placed on the wharf, and
any other usual expenses of navigation, shall be considered ordinary expenses
to be defrayed by the shipowner, unless there is an express agreement to the
contrary.
ARTICLE 808. Averages shall be: 1. Simple or particular. 2. General or gross.
ARTICLE 809. As a general rule, simple or particular averages shall include all
the expenses and damages caused to the vessel or to her cargo which have not
inured to the common benefit and profit of all the persons interested in the
vessel and her cargo, and especially the following:
1. The losses suffered by the cargo from the time of its embarkation until it is
unloaded, either on account of inherent defect of the goods or by reason of an
accident of the sea or force majeure, and the expenses incurred to avoid and
repair the same.
2. The losses and expenses suffered by the vessel in its hull, rigging, arms, and
equipment, for the same causes and reasons, from the time it puts to sea from
the port of departure until it anchors and lands in the port of destination.
3. The losses suffered by the merchandise loaded on deck, except in
coastwise navigation, if the marine ordinances allow it.
4. The wages and victuals of the crew when the vessel is detained or
embargoed by legitimate order or force majeure, if the charter has been
contracted for a fixed sum for the voyage.
5. The necessary expenses on arrival at a port, in order to make repairs or
secure provisions.
6. The lowest value of the goods sold by the captain in arrivals under stress
for the payment of provisions and in order to save the crew, or to meet any
other need of the vessel, against which the proper amount shall be charged.
7. The victuals and wages of the crew while the vessel is in quarantine.
8. The loss inflicted upon the vessel or cargo by reason of an impact or
collision with another, if it is accidental and unavoidable. If the accident should
occur through the fault or negligence of the captain, the latter shall be liable for
all the losses caused.
9. Any loss suffered by the cargo through the fault, negligence, or barratry of
the captain or of the crew, without prejudice to the right of the owner to
recover the corresponding indemnity from the captain, the vessel, and the
freightage.
ARTICLE 810. The owner of the goods which gave rise to the expense or
suffered the damage shall bear the simple or particular averages.

ARTICLE 811. As a general rule, general or gross averages shall include all the
damages and expenses which are deliberately caused in order to save the
vessel, its cargo, or both at the same time, from a real and known risk, and
particularly the following:
1. The goods or cash invested in the redemption of the vessel or of the cargo
captured by enemies, privateers, or pirates, and the provisions, wages, and
expenses of the vessel detained during the time the settlement or redemption is
being made.
2. The goods jettisoned to lighten the vessel, whether they belong to the
cargo, to the vessel, or to the crew, and the damage suffered through said act by
the goods which are kept on board.
3. The cables and masts which are cut or rendered useless, the anchors and
the chains which are abandoned, in order to save the cargo, the vessel, or both.
4. The expenses of removing or transferring a portion of the cargo in order to
lighten the vessel and place it in condition to enter a port or roadstead, and the
damage resulting therefrom to the goods removed or transferred.
5. The damage suffered by the goods of the cargo by the opening made in the
vessel in order to drain it and prevent its sinking.
6. The expenses caused in order to float a vessel intentionally stranded for
the purpose of saying it.
7. The damage caused to the vessel which had to be opened, scuttled or
broken in order to save the cargo.
8. The expenses for the treatment and subsistence of the members of the
crew who may have been wounded or crippled in defending or saying the
vessel.
9. The wages of any member of the crew held as hostage by enemies,
privateers, or pirates, and the necessary expenses which he may incur in his
imprisonment, until he is returned to the vessel or to his domicile, should he
prefer it.
10. The wages and victuals of the crew of a vessel chartered by the month,
during the time that it is embargoed or detained by force majeure or by order
of the government, or in order to repair the damage caused for the common
benefit.
11. The depreciation resulting in the value of the goods sold at arrival under
stress in order to repair the vessel by reason of gross average.
12. The expenses of the liquidation of the average.
ARTICLE 812. In order to satisfy the amount of the gross or general averages,
all the persons having an interest in the vessel and cargo therein at the time of
the occurrence of the average shall contribute.
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 26
ARTICLE 813. In order to incur the expenses and cause the damages
corresponding to gross average, there must be a resolution of the captain,
adopted after deliberation with the sailing mate and other officers of the vessel,
and after hearing the persons interested in the cargo who may be present. If the
latter shall object, and the captain and officers or a majority of them, or the
captain, if opposed to the majority, should consider certain measures
necessary, they may be executed under his responsibility, without prejudice to
the right of the shippers to proceed against the captain before the competent
judge or court, if they can prove that he acted with malice, lack of skill, or
negligence. If the persons interested in the cargo, being on board the vessel,
have not been heard, they shall not contribute to the gross average, their share
being chargeable against the captain, unless the urgency of the case should be
such that the time necessary for previous deliberations was wanting.
ARTICLE 814. The resolution adopted to cause the damages which constitute
general average must necessarily be entered in the log book, stating the
motives and reasons for the dissent, should there be any, and the irresistible
and urgent causes which impelled the captain if he acted of his own accord. In
the first case the minutes shall be signed by all the persons present who could
do so before taking action, if possible; and if not, at the first opportunity. In the
second case, it shall be signed by the captain and by the officers of the vessel. In
the minutes, and after the resolution, shall be stated in detail all the goods
jettisoned, and mention shall be made of the injuries caused to those kept on
board. The captain shall be obliged to deliver one copy of these minutes to the
maritime judicial authority of the first port he may make, within twentyfour
hours after his arrival, and to ratify it immediately under oath.
ARTICLE 815. The captain shall direct the jettison, and shall order the goods
cast overboard in the following order:
1. Those which are on deck, beginning with those which embarrass the
maneuver or damage of the vessel, preferring, if possible, the heaviest ones
with the least utility and value.
2. Those which are below the upper deck, always beginning with those of the
greatest weight and smallest value, to the amount and number absolutely
indispensable.
ARTICLE 816. In order that the goods jettisoned may be included in the gross
average and the owners thereof be entitled to indemnity, it shall be necessary
insofar as the cargo is concerned that their existence on board be proven by
means of the bill of lading; and with regard to those belonging to the vessel, by
means of the inventory prepared before the departure in accordance with the
first paragraph of Article 812.

ARTICLE 817. If in lightening a vessel on account of a storm, in order to
facilitate its entry into a port or roadstead, part of the cargo should be
transferred to lighters or barges and be lost, the owner of said part shall be
entitled to indemnity, as if the loss had originated from a gross average, the
amount thereof being distributed between the vessel and cargo from which it
came. If, on the contrary, the merchandise transferred should be saved and the
vessel should be lost, no liability may be demanded of the salvage.
ARTICLE 818. If, as a necessary measure to extinguish a fire in a port,
roadstead, creek, or bay, it should be decided to sink any vessel, this loss shall
be considered gross average, to which the vessels saved shall contribute.
SECTION TWO ARRIVALS UNDER STRESS
ARTICLE 819. If during the voyage the captain should believe that the vessel
can not continue the trip to the port of destination on account of the lack of
provisions, well-founded fear of seizure, privateers, or pirates, or by reason of
any accident of the sea disabling it to navigate, he shall assemble the officers
and shall summon the persons interested in the cargo who may be present, and
who may attend the meeting without the right to vote; and if, after examining
the circumstances of the case, the reason should be considered well-founded,
the arrival at the nearest and most convenient port shall be agreed upon,
drafting and entering the proper minutes, which shall be signed by all, in the
log book. The captain shall have the deciding vote, and the persons interested
in the cargo, may make the objections and protests they may deem proper,
which shall be entered in the minutes in order that they may make use thereof
in the manner they may consider advisable.
ARTICLE 820. An arrival shall not be considered lawful in the following cases:
1. If the lack of provisions should arise from the failure to take the necessary
provisions for the voyage according to usage and customs, or if they should
have been rendered useless or lost through bad stowage or negligence in their
care.
2. If the risk of enemies, privateers, or pirates should not have been well
known, manifest, and based on positive and provable facts.
3. If the defect of the vessel should have arisen from the fact that it was not
repaired, rigged, equipped, and prepared in a manner suitable for the voyage,
or from some erroneous order of the captain.
4. When malice, negligence, want of foresight, or lack of skill on the part of
the captain exists in the act causing the damage.
ARTICLE 821. The expenses of an arrival under stress shall always be for the
account of the shipowner or agent, but they shall not be liable for the damages
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 27
which may be caused the shippers by reason of the arrival provided the latter is
legitimate. Otherwise, the ship agent and the captain shall be jointly liable.
ARTICLE 822. If in order to make repairs to the vessel or because there is
danger that the cargo may suffer damage, it should be necessary to unload, the
captain must request authorization from the competent judge or court for the
removal, and carry it out with the knowledge of the person interested in the
cargo, or his representative, should there be any. In a foreign port, it shall be
the duty, of the Philippine Consul, where there is one, to give the authorization.
In the first case, the expenses shall be for the account of the ship agent or
owner, and in the second, they shall be chargeable against the owners of the
merchandise for whose benefit the act was performed. If the unloading should
take place for both reasons, the expenses shall be divided proportionately
between the value of the vessel and that of the cargo.
ARTICLE 823. The custody and preservation of the cargo which has been
unloaded shall be intrusted to the captain, who shall be responsible for the
same, except in cases of force majeure.
ARTICLE 824. If the entire cargo or part thereof should appear to be damaged,
or there should be imminent danger of its being damaged, the captain may
request of the competent judge or court, or of the consul in a proper case, the
sale of all or of part of the former, and the person taking cognizance of the
matter shall authorize it, after an examination and declaration of experts,
advertisements, and other formalities required by the case, and an entry in the
book, in accordance with the provisions of Article 624. The captain shall, in a
proper case, justify the legality of his conduct, under the penalty of answering
to the shipper for the price the merchandise would have brought if they had
arrived in good condition at the port of destination.
ARTICLE 825. The captain shall be responsible for the damages caused by his
delay, if after the cause of the arrival under stress has ceased, he should not
continue the voyage. If the cause of arrival should have been the fear of
enemies, privateers, or pirates, a deliberation and resolution in a meeting of the
officers of the vessel and persons interested in the cargo who may be present,
in accordance with the provisions contained in Article 819, shall precede the
departure.
SECTION THREE COLLISIONS
ARTICLE 826. If a vessel should collide with another, through or the fault,
negligence, or lack of skill of the captain, sailing mate, or any other member of

the complement, the owner of the vessel at fault shall indemnify the losses and
damages suffered, after an expert appraisal.
ARTICLE 827. If the collision is imputable to both vessels, each one shall suffer
its own damages, and both shall be solidarily responsible for the losses and
damages occasioned to their cargoes.
ARTICLE 828. The provisions of the preceding article are applicable to the use
in which it cannot be determined which of the two vessels has caused the
collision.
ARTICLE 829. In the cases above mentioned the civil action of the owner
against the person causing the injury as well as the criminal liabilities, which
may be proper, are reserved.
ARTICLE 830. If a vessel should collide with another, through fortuitous event
or force majeure, each vessel and its cargo shall bear its own damages.
ARTICLE 831. If a vessel should be forced by a third vessel to collide with
another, the owner of the third vessel shall indemnify the losses and damages
caused, the captain thereof being civilly liable to said owner.
ARTICLE 832. If by reason of a storm or other cause of force majeure, a vessel
which is properly anchored and moored should collide with those nearby,
causing them damages, the injury occasioned shall be considered as particular
average of the vessel run into.
ARTICLE 833. A vessel which, upon being run into, sinks immediately, as well
as that which, having been obliged to make a port to repair the damages caused
by the collision, is lost during the voyage or is obliged to be stranded in order to
be saved, shall be presumed as lost by reason of collision.
ARTICLE 834. If the vessels colliding with each other should have pilots on
board discharging their duties at the time of the collision, their presence shall
not exempt the captains from the liabilities they incur, but the latter shall have
the right to be indemnified by the pilots, without prejudice to the criminal
liability which the latter may incur.
ARTICLE 835. The action for the recovery of losses and damages arising from
collisions cannot be admitted if a protest or declaration is not presented within
twenty-four hours before the competent authority of the point where the
collision took place, or that of the first port of arrival of the vessel, if in
09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 28
Philippine territory, and to the consul of the Republic of the Philippines if it
occurred in a foreign country.
ARTICLE 836. With respect to damages caused to persons or to the cargo, the
absence of protest may not prejudice the persons interested who were not on
board or were not in a condition to make known their wishes.
ARTICLE 837. The civil liability incurred by the shipowners in the case
prescribed in this section, shall be understood as limited to the value of the
vessel with all its appurtenances and freightage earned during the voyage.
ARTICLE 838. When the value of the vessel and her appurtenances should not
be sufficient to cover all the liabilities, the indemnity due by reason of the death
or injury of persons shall have preference.
ARTICLE 839. If the collision should take place between Philippine vessels in
foreign waters, or if having taken place in the open seas, and the vessels should
make a foreign port, the Consul of the Republic of the Philippines in said port
shall hold a summary investigation of the accident, forwarding the proceedings
to the Secretary of the Department of Foreign Affairs for continuation and
conclusion. aisadc
SECTION FOUR SHIPWRECKS
ARTICLE 840. The losses and deteriorations suffered by a vessel and her cargo
by reason of shipwreck or stranding shall be individually for the account of the
owners, the part which may be saved belonging to them in the same
proportion.
ARTICLE 841. If the wreck or stranding should be caused by the malice,
negligence, or lack of skill of the captain, or because the vessel put to sea was
insufficiently repaired and equipped, the ship agent or the shippers may
demand indemnity of the captain for the damages caused to the vessel or to the
cargo by the accident, in accordance with the provisions contained in Articles
610, 612, 614, and 621.
ARTICLE 842. The goods saved from the wreck shall be specially bound for the
payment of the expenses of the respective salvage, and the amount thereof
must be paid by the owners of the former before they are delivered to them,
and with preference over any other obligation if the merchandise should be
sold.
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ARTICLE 843. If several vessels sail under convoy, and any of them should be
wrecked, the cargo saved shall be distributed among the rest in proportion to
the amount which each one is able to take. If any captain should refuse, without
sufficient cause, to receive what may correspond to him, the captain of the
wrecked vessel shall enter a protest against him, before two sea officials, of the
losses and damages resulting therefrom, ratifying the protest within twenty-
four hours after arrival at the first port, and including it in the proceedings he
must institute in accordance with the provisions contained in Article 612. If it is
not possible to transfer to the other vessels the entire cargo of the vessel
wrecked, the goods of the highest value and smallest volume shall be saved
first, the designation thereof to be made by the captain with the concurrence of
the officers of his vessel.

ARTICLE 844. A captain who may have taken on board the goods saved from
the wreck shall continue his course to the port of destination, and on arrival
shall deposit the same, with judicial the intervention, at the disposal of their
legitimate owners. In case he changes his course, if he can unload them at the
port of which they were consigned, the captain may make said port if the
shippers or supercargoes present and the officers and passengers of the vessel
consent thereto; but he may not do so, even with said consent, in time of war or
when the port is difficult and dangerous to make. The owners of the cargo shall
defray all the expenses of this arrival as well as the payment of the freightage
which, after taking into consideration the circumstances of the case, may be
fixed by agreement or by a judicial decision.

ARTICLE 845. If on the vessel there should be no person interested in the cargo
who can pay the expenses and freightage corresponding to the salvage, the
competent judge or court may order the sale of the part necessary to cover the
same. This shall also be done when its preservation is dangerous, or when in a
period of one year it should not have been possible to ascertain who are its
legitimate owners. In both cases the proceedings shall be with the publicity and
formalities prescribed in Article 579, and the net proceeds of the sale shall be
safely deposited, in the discretion of the judge or court, so that they may be
delivered to the legitimate owner thereof.