09 transpo digests pdf

8/12/2019 09 Transpo Digests PDF

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09 Transpo Compiled Codal. Week 10-11. Atty. Ampil. 1

CONTENTS

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


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C. CODE OF COMMERCE

X. 10TH WEEK (OVERLAND TRANSPORTATION; VESSELS; REALAND HYPOTHECARY NATURE OF MARITIME LAW; PERSONS IN

MARITIME LAW; MARITIME ACCIDENTS; MARITIME CONTRACTS)

STUDY: CODE OF COMMERCE, ARTICLES 349-379; 573-651.

Source: http://legalnotes.wordpress.com/2013/01/23/code-of-commerce-

provisions-on-overland-transportation-provisions-only/

ARTICLES 349-379

Article 349 A contract of transportation by land or water ways of any kind

shall be considered commercial:

1. When it has for its objectmerchandiseor any Article of commerce.2. When, whatever its object may be, the carrier is a merchant or is

habitually engaged in transportation for the public.

Article 350 The shipper as well as the carrier of merchandise or goods may

mutually demand that a bill of lading be made, stating:

1. The name, surname and residence of the shipper.2. The name, surname and residence of the carrier.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 tothe bearer of said bill.4. The description of the goods, with a statement of their kind, of their

weight, and of the external marks or signs of the packages in which

they are contained.

5. The cost of transportation.6. The date on whichshipmentis made.7. The place of delivery to the carrier.8. The place and the time at which delivery to the consignee shall be

made.

9. The indemnity to be paid by the carrier in case of delay, if there shouldbe any agreement on this matter.

Article 351 In transportation made by railroads or other enterprises subject

to regulation rate and time schedules, it shall be sufficient for thebills of lading

or the declaration of shipment furnished by the shipper to refer, with respect to

the cost, time and special conditions of the carriage, to the schedules and

regulations the application of which he requests; and if the shipper does not

determine the schedule, the carrier must apply the rate of those which appear

to be the lowest, with the conditions inherent thereto, always including astatement or reference to in the bill of lading which he delivers to the shipper.

Article 352 The bills of lading, or tickets in cases of transportation ofpassengers, may be diverse, some for persons and others for baggage; but all of

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

and weight of the packages, with such other manifestations which may be

considered necessary for their easy identification.

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, noexceptions being admissible other than those of falsity and material error in the

drafting.

After the contract has been complied with, the bill of lading which the carrierhas issued shall be returned to him, and by virtue of the exchange of this title

with the thing transported, the respective obligations and actions shall be

considered cancelled, unless in the same act the claim which the parties may

wish to reserve be reduced to writing, with the exception of that provided for in

Article 366.

In case the consignee, upon receiving the goods, cannot return the bill of ladingsubscribed by the carrier, because of its loss or of any other cause, he must give

the latter a receipt for the goods delivered, this receipt producing the same

effects as the return of the bill of lading.

Article 354 In the absence of a bill of lading, disputes shall be determined by

the legal proofs which the parties may present in support of their respectiveclaims, according to the general provisions established in this Code for

commercial contracts.

Article 355 The responsibility of the carrier shall commence from the

moment he receives the merchandise, personally or through a person chargedfor the purpose, at the place indicated for receiving them.
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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 shallproceed 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 carriershall 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 tobe 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.

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 goodstransported 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 timeat 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.


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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 conditionand 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 asingle 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 ascertainedfrom 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 havebeen 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 appointedby 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 notsettle 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.

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 thebill 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 handsof 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 thebill 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.


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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 deferthe payment of the expenses and transportation charges of the goods theyreceive 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 andregulations of the public administration, during the whole course of the trip

and upon arrival at the point of destination, except when his failure arises fromhaving been led into error by falsehood on the part of the shipper in the

declaration of the merchandise. If the carrier has acted by virtue of a formal

order of the shipper or consignee of the merchandise, both shall become

responsible.

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 ofnumber 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 withregard 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 ofany 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.


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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, whichat 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 avoyage, 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 hisaccount, 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 withrespect 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 inwhole 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 thecertificate 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 isnone, 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,

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 beappraised, 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 forthe 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, thespecial 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 appraisementapproved 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 otherexpenses 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 andapproved 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 MerchantMarine, 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


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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 thispreference, 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 ofthe 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 whichwere not delivered to the consignees, or for averages suffered for which thevessel 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 itreturns 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

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 anyperson 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 ONESHIPOWNERS 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 amountclaimed 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 inwhich 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 itmay 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


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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 ofviews, 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 theproceedings 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 liabilityby 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 fornavigation.

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, whichmust be acquired by the other co-owners, after a judicial appraisement of the

value of the portion or portions assigned. The resolutions of the majorityrelating to the dissolution of the partnership and sale of t he 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.

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 havethe 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


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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 anexecutory 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 theship 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 bedischarged 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 thecommand 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.

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, asestablished 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 financialadministration of the vessel, and shall intrust the navigation to a personpossessing 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'sexpress 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 arewanting in discipline, holding a preliminary hearing on the crimes committed

on board the vessel on the seas, which crimes shall be turned over to theauthorities 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 requestinstruction 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


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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 absolutelyindispensable 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 thelaw 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 thecrew 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 byexperts, 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 maneuversexecuted, 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

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 ofequipment or goods, fuel, food, outfits, wages, and other expenses of whatever

nature they may be. He shall furthermore enter therein a list of a ll 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 ofthe 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 andengines in good condition, and with the equipment required for goodnavigation, 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 thecarriage 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 thesafety 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 thenavigation, 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.


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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 off icial 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, andto 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 thecrew 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 thenames 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 thedecision 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 f orm 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.

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 forcemajeure, 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 mentionedin 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 supplyof 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 heborrow 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, andcosts 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.


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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 coursewhich 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 theprovisions 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 theship 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 thecases and without the formalities prescribed in this Code, shall be liable for the

principal, interests, and costs, and shall indemnify for the damages he maycause. 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 sailunder convoy, or until the danger is over or he has received express orders

from the ship agent or the shippers.

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 theproof 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 takingsuch other steps as may assist in arriving at the facts he shall make a statementof 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, alwayssaying 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 theregulations of the administration, delivering the cargo without any defalcation,

to the consignee, and in a proper case, the vessel, rigging, and freightage to theship 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:


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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 hisduties, 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, signedby the competent authority, and shall enter therein daily the distance, thecourse 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 t he other officers of thesea. 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 logbook, 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 misdemeanorhas been committed.

ARTICLE 632. The following shall be the obligations of the second mate:

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, requestingthe 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 thequalifications which the laws and regulations require, and not be disqualified inaccordance 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 spareparts, 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 damageswhich 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 beproper 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, thecaptain 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.


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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 offurnaces 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 theinformation 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 suchnumber 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 goto 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 executedabroad, stating therein all the obligations which each one contracts and all the

rights he acquires said authorities taking care that these obligations and rightsare 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 appearany signs of alterations in its entries, it shall be admitted as evidence in

questions which may arise between the captain and the crew with respect to

the agreements contained therein and the amounts paid on account of the

same. Every member of the crew may demand of the captain a copy, signed by

the latter, of the agreement and of the liquidation of his wages, as they appear

in the book.

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 ofthe 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 hadsigned. 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 workentrusted 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 ofprudence 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,


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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 fromthat 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 forfifteen 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 theseamen 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 fixedin 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 theiragreements. 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 orcharterers, the agent shall have a right to demand of them the indemnity which

may be justly due.

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 theport which the captain may deem advisable to make for the benefit of the vesseland 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 contractif 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 shallindemnify 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


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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 therisks, 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 theservice 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 ofhis death, namely If he died a natural death and was engaged on wages, thatwhich may have been earned up to the date of his death shall be paid. If the

contract was for a fixed sum for the w hole 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 soas 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 shallonly 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 pertainingto 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:

1. If, before beginning the voyage, the captain attempts to change i t, 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 thepersons 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 theadministrative duties which the ship agent or the shippers may have assignedto 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 inforce 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 oragreement, 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.


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XI. 11TH WEEK (OVERLAND TRANSPORTATION; VESSELS; REALAND HYPOTHECARY NATURE OF MARITIME LAW; PERSONS IN

MARITIME LAWL MARITIME 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 theconditions 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 heis 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 weightor 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 bepaid 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.

ARTICLE 654. The charter parties executed with the intervention of a broker,

who certifies to the authenticity of the signatures of the contracting part

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