unconditionally placed in the possession of, and
Common Carriers
 
SUBSECTION 1. - General Provisions
  
Art. 1732. Common carriers are persons, corporations,
firms or associations engaged in the business of carrying
or transporting passengers or goods or both, by land,
water, or air, for compensation, offering their services
to the public.
Art. 1733. Common carriers, from the nature of their
business and for reasons of public policy, are bound to
observe extraordinary diligence in the vigilance over the
goods and for the safety of the passengers transported
by them, according to all the circumstances of each
case.
Such extraordinary diligence in the vigilance over the
goods is further expressed in Articles 1734, 1735, and
1745, Nos. 5, 6, and 7, while the extraordinary diligence
for the safety of the passengers is further set forth in
Articles 1755 and 1756. 
SUBSECTION 2. - Vigilance Over Goods
  
Art. 1734. Common carriers are responsible for the loss,
destruction, or deterioration of the goods, unless the
same is due to any of the following causes only:
(1) Flood, storm, earthquake, lightning, or
other natural disaster or calamity;
(2) Act of the public enemy in war, whether
international or civil;
(3) Act of omission of the shipper or owner of
the goods;
(4) The character of the goods or defects in the
packing or in the containers;
(5) Order or act of competent public authority.
Art. 1735. In all cases other than those mentioned in
Nos. 1, 2, 3, 4, and 5 of the preceding article, if the
goods are lost, destroyed or deteriorated, common
carriers are presumed to have been at fault or to have
acted negligently, unless they prove that they observed
extraordinary diligence as required in Article 1733.
Art. 1736. The extraordinary responsibility of the
common carrier lasts from the time the goods are
received by the carrier for transportation until the same
are delivered, actually or constructively, by the carrier
to the consignee, or to the person who has a right to
receive them, without prejudice to the provisions of
Article 1738.
Art. 1737. The common carrier's duty to observe
extraordinary diligence over the goods remains in full
force and effect even when they are temporarily
unloaded or stored in transit, unless the shipper or
owner has made use of the right of stoppage in transitu.
Art. 1738. The extraordinary liability of the common
carrier continues to be operative even during the time
the goods are stored in a warehouse of the carrier at
the place of destination, until the consignee has been
advised of the arrival of the goods and has had
reasonable opportunity thereafter to remove them or
otherwise dispose of them.
Art. 1739. In order that the common carrier may be
exempted from responsibility, the natural disaster must
have been the proximate and only cause of the loss.
However, the common carrier must exercise due
diligence to prevent or minimize loss before, during and
after the occurrence of flood, storm or other natural
disaster in order that the common carrier may be
exempted from liability for the loss, destruction, or
deterioration of the goods. The same duty is incumbent
upon the common carrier in case of an act of the public
enemy referred to in Article 1734, No. 2.
Art. 1740. If the common carrier negligently incurs in
delay in transporting the goods, a natural disaster shall
not free such carrier from responsibility.
Art. 1741. If the shipper or owner merely contributed to
the loss, destruction or deterioration of the goods, the
proximate cause thereof being the negligence of the
common carrier, the latter shall be liable in damages,
which however, shall be equitably reduced.
Art. 1742. Even if the loss, destruction, or deterioration
of the goods should be caused by the character of the
goods, or the faulty nature of the packing or of the
containers, the common carrier must exercise due
diligence to forestall or lessen the loss.
Art. 1743. If through the order of public authority the
goods are seized or destroyed, the common carrier is
not responsible, provided said public authority had
power to issue the order.
Page 1 of 15
Art. 1744. A stipulation between the common carrier
and the shipper or owner limiting the liability of the
former for the loss, destruction, or deterioration of the
goods to a degree less than extraordinary diligence shall
be valid, provided it be:
(1) In writing, signed by the shipper or owner;
(2) Supported by a valuable consideration
other than the service rendered by the
common carrier; and
(3) Reasonable, just and not contrary to public
policy.
Art. 1745. Any of the following or similar stipulations
shall be considered unreasonable, unjust and contrary
to public policy:
(1) That the goods are transported at the risk
of the owner or shipper;
(2) That the common carrier will not be liable
for any loss, destruction, or deterioration of
the goods;
(3) That the common carrier need not observe
any diligence in the custody of the goods;
(4) That the common carrier shall exercise a
degree of diligence less than that of a good
father of a family, or of a man of ordinary
prudence in the vigilance over the movables
transported;
(5) That the common carrier shall not be
responsible for the acts or omission of his or its
employees;
(6) That the common carrier's liability for acts
committed by thieves, or of robbers who do
not act with grave or irresistible threat,
violence or force, is dispensed with or
diminished;
(7) That the common carrier is not responsible
for the loss, destruction, or deterioration of
goods on account of the defective condition of
the car, vehicle, ship, airplane or other
equipment used in the contract of carriage.
Art. 1746. An agreement limiting the common carrier's
liability may be annulled by the shipper or owner if the
common carrier refused to carry the goods unless the
former agreed to such stipulation.
Art. 1747. If the common carrier, without just cause,
delays the transportation of the goods or changes the
stipulated or usual route, the contract limiting the
common carrier's liability cannot be availed of in case of
the loss, destruction, or deterioration of the goods.
Art. 1748. An agreement limiting the common carrier's
liability for delay on account of strikes or riots is valid.
Art. 1749. A stipulation that the common carrier's
liability is limited to the value of the goods appearing in
the bill of lading, unless the shipper or owner declares a
greater value, is binding.
Art. 1750. A contract fixing the sum that may be
recovered. by the owner or shipper for the loss,
destruction, or deterioration of the goods is valid, if it is
reasonable and just under the circumstances, and has
been fairly and freely agreed upon.
Art. 1751. The fact that the common carrier has no
competitor along the line or route, or a part thereof, to
which the contract refers shall be taken into
consideration on the question of whether or not a
stipulation limiting the common carrier's liability is
reasonable, just and in consonance with public policy.
Art. 1752. Even when there is an agreement limiting the
liability of the common carrier in the vigilance over the
goods, the common carrier is disputably presumed to
have been negligent in case of their loss, destruction or
deterioration.
Art. 1753. The law of the country to which the goods are
to be transported shall govern the liability of the
common carrier for their loss, destruction or
deterioration.
Art. 1754. The provisions of Articles 1733 to 1753 shall
apply to the passenger's baggage which is not in his
personal custody or in that of his employee. As to other
baggage, the rules in Articles 1998 and 2000 to 2003
concerning the responsibility of hotel-keepers shall be
applicable.
Page 2 of 15
SUBSECTION 3. - Safety of Passengers
  
Art. 1755. A common carrier is bound to carry the
passengers safely as far as human care and foresight
can provide, using the utmost diligence of very cautious
persons, with a due regard for all the circumstances.
Art. 1756. In case of death of or injuries to passengers,
common carriers are presumed to have been at fault or
to have acted negligently, unless they prove that they
observed extraordinary diligence as prescribed in
Articles 1733 and 1755.
Art. 1757. The responsibility of a common carrier for the
safety of passengers as required in Articles 1733 and
1755 cannot be dispensed with or lessened by
stipulation, by the posting of notices, by statements on
tickets, or otherwise.
of the common carrier, but the amount of damages
shall be equitably reduced.
Art. 1763. A common carrier is responsible for injuries
suffered by a passenger on account of the wilful acts or
negligence of other passengers or of strangers, if the
common carrier's employees through the exercise of
the diligence of a good father of a family could have
prevented or stopped the act or omission. 
 
SUBSECTION 4. - Common Provisions
Art. 1764. Damages in cases comprised in this Section
shall be awarded in accordance with Title XVIII of this
Book, concerning Damages. Article 2206 shall also apply
to the death of a passenger caused by the breach of
contract by a common carrier.

Art. 1758. When a passenger is carried gratuitously, a
stipulation limiting the common carrier's liability for
negligence is valid, but not for wilful acts or gross
negligence.
The reduction of fare does not justify any limitation of
the common carrier's liability.
Art. 1759. Common carriers are liable for the death of or
injuries to passengers through the negligence or wilful
acts of the former's employees, although such
employees may have acted beyond the scope of their
authority or in violation of the orders of the common
carriers.
Art. 1765. The Public Service Commission may, on its
own motion or on petition of any interested party, after
due hearing, cancel the certificate of public convenience
granted to any common carrier that repeatedly fails to
comply with his or its duty to observe extraordinary
diligence as prescribed in this Section.
Art. 1766. In all matters not regulated by this Code, the
rights and obligations of common carriers shall be
governed by the Code of Commerce and by special laws.

This liability of the common carriers does not cease

upon proof that they exercised all the diligence of a
good father of a family in the selection and supervision
of their employees.

Art. 1760. The common carrier's responsibility

prescribed in the preceding article cannot be eliminated
or limited by stipulation, by the posting of notices, by
statements on the tickets or otherwise.

Art. 1761. The passenger must observe the diligence of

a good father of a family to avoid injury to himself.

Art. 1762. The contributory negligence of the passenger

does not bar recovery of damages for his death or
injuries, if the proximate cause thereof is the negligence

Page 3 of 15
 RISKS
CARRIAGE OF GOODS BY SEA ACT
Sec.  2.  Subject to the provisions of Section 6, under
 
every contract of carriage of goods by sea, the carrier in
Section 1.  That the provisions of Public Act No. 521 of
relation to the loading, handling, stowage, carriage,
the 7th Congress of the United States, approved on
custody, care, and discharge of such goods shall be
April 16, 1936, be accepted, as it is hereby accepted to
subject to the responsibilities and liabilities and entitled
be made applicable to all contracts for the carriage of
to the rights and immunities hereinafter set forth. 
goods by sea to and from Philippine ports in foreign
trade: Provided, that nothing in this Act shall be
construed as repealing any existing provision of the
Code of Commerce which is now in force, or as limiting RESPONSIBILITIES AND LIABILITIES
its application.  
Sec.  3.  (1) The carrier shall be bound before and at the
Sec. 2.  This Act shall take effect upon its approval. beginning of the voyage to exercise due diligence to —
(Approved October 22, 1936). 
(a)  Make the ship seaworthy;
TITLE I
(b)  Properly man,equip, and supply the ship;
Sec. 1.  When used in this Act — 
(c)  Make the holds, refrigerating and cooling chambers,
(a)  The term "carrier" includes the owner or the and all other parts of the ship in which goods are
charterer who enters into a contract of carriage with a carried, fit and safe for their reception, carriage, and
shipper. preservation.

(b)  The term "contract of carriage" applies only to (2)  The carrier shall properly and carefully load, handle,
contracts of carriage by covered by a bill of lading or any stow, carry, keep, care for,and discharge the goods
similar document of title, insofar as such document carried.
relates to the carriage of goods by sea, including any bill
(3)  After receiving the goods into his carrier, or the
of lading or any similar document as aforesaid issued
master or agent of the carrier, shall, on demand of the
under or pursuant to a character party from the
shipper, issue to the shipper a bill of lading showing
moment at which such bill of lading or similar document
among other things — 
of title regulates the relations between a carrier and a
holder of the same.   (a)  The loading marks necessary for identification of the
goods as the same are furnished in writing by the
(c)  The term "goods" includes goods, wares,
shipper before the loading of such goods starts,
merchandise, and articles of every kind whatsoever,
provided such marksare stamped or otherwise shown
except live animals and cargo which by the contract of
clearly upon the goods if uncovered,in such a manner as
carriage is stated as being carried on deck and is so
should ordinarily remain legible until the end of the
carried. 
voyage. 
(d)  The term "ship" means any vessel used for the
(b)  Either the number of packages or pieces, or the
carriage of goods by sea. 
quantity or weight, as the casemay be, as furnished in
(e)  The term "carriage of goods" covers the period from writing by the shipper.
the time when the goods are loaded to the time when
(c)  The apparent order and conditions of the goods:
they are discharged from the ship. 
Provided, that no carrier, master, or agent of the carrier,
shall be bound to state or show in the bill of lading any
marks, number, quantity, or weight which he has

Page 4 of 15
reasonable ground for suspecting not accurately to
represent the good actually received or which he has
had no reasonable means of checking.  reasonable facilities to each other for inspecting and
(4)  Such a bill of lading shall be prima facie evidence of
the receipt by the carrier of the goods as therein
described in accordance with paragraphs (3) (a), (b), and
(c), of this section: (The rest of the provision is not
applicable to the Philippines).
(5)  The shipper shall be deemed to have guaranteed to
the carrier the accuracy at the time of shipment of the
marks, number, quantity, and weight, as furnished by
him; and the shipper shall indemnify the carrier against
all loss, damages, and expenses arising or resulting from
inaccuracies in such particulars. The right of the carrier
to such indemnity shall in no way limit his responsibility
and liability under the contract of carriage to any person
other than the shipper.  "shipped" bill of lading.
(6)  Unless notice or loss or damage and the general
nature of such loss or damage by given in writing to the
carrier or his agent at the port of discharge or at the
time of the removal of the goods into the custody of the
person entitled to delivery thereof under the contract of
carriage, such removal shall be prima facie evidence of
the delivery by the carrier of the goods as described in
the bill of lading. If the loss or damage is not apparent,
the notice must be given within three days of the
delivery. 
Said notice of loss or damage may be endorsed upon
the receipt for the goods given by the person taking
delivery thereof.
The notice in writing need not be given if the state of
the goods has at the time of their receipt been the
subject of joint survey or inspection.
In any event the carrier and the ship shall be discharged
from all liability in respect of loss or damage unless suit
is brought within one year after delivery of the goods or
the date when the goods should have been delivered:
Provided, that, if a notice of loss or damage, either
apparent or concealed, is not given as provided for in
this section, that fact shall not affect or prejudice the
right of the shipper to bring suit within one year after
the delivery of the goods or the date when the goods
should have been delivered.
In the case of any actual or apprehended loss or
damage, the carrier and the receiver shall give all
tallying the goods.
(7)  After the goods are loaded the bill of lading to be
issued by the carrier, master, or agent of the carrier to
the shipper shall if the shipper so demands, be a
"shipped" bill of lading: Provided, that if the shipper
shall have previously taken up any document of title to
such goods, he shall surrender the same as against the
issue of the "shipped" bill of lading, but at the option of
the carrier such document of title may be noted at the
port of shipment by the carrier, master, or agent with
the name or names of the ship or ships upon which the
goods have been shipped and the date or dates of
shipment, and when so noted the same shall for the
purpose of this section be deemed to constitute a
(8)  Any clause, covenant, or agreement in a contract of
carriage relieving the carrier of the ship from liability for
loss or damage to or in connection with the goods,
arising from negligence, fault, or failure in the duties
and obligations provide in this section or lessening such
liability otherwise than as provided in this Act, shall be
null and void and of no effect. A benefit of insurance in
favor of the carrier, or similar clause, shall be deemed to
be a clause relieving the carrier from liability. 
RIGHTS AND IMMUNITIES
Sec.  4.  (1) Neither the carrier nor the ship shall be
liable for loss or damage arising or resulting from
unseaworthiness unless caused by want of due diligence
on the part of the carrier to make the ship seaworthy
and to secure that the ship is properly manned,
equipped, and supplied, and to make the holds,
refrigerating and cooling chambers, and all other parts
of the ship in which goods are carried fit and safe for
their reception, carriage, and preservation, in
accordance with the provisions of paragraph (1) of
Section (3). Whenever loss or damage has resulted from
unseaworthiness, the burden of proving the exercise of
due diligence shall be on the carrier or other person
claiming exemption under this section. 
Page 5 of 15
(2)  Neither the carrier nor the ship shall be responsible exception to show that neither the actual fault or privity
for loss or damage arising or resulting from — of the carrier nor the fault or neglect of the agents or
servants of the carrier contributed to the loss or
(a)  Act, neglect, or default of the master, mariner, pilot, damage.
or the servants of the carrier in the navigation or in the
management of the ship; (3)  The shipper shall not be responsible for loss or
damage sustained by the carrier or the ship arising or
(b)  Fire, unless caused by the actual fault or privity of resulting from any cause without the act, or neglect of
the carrier;  the shipper, his agents, or his servants. 

(c)  Perils, dangers, and accidents of the sea or other (4)  Any deviation in saving or attempting to save life or
navigable water;  property at sea, or any reasonable deviation shall not be
deemed to be an infringement or breach or this Act or
(d)  Act of God; 
of the contract of carriage, and carrier shall not be liable
(e)  Act of war;  for any loss or damage resulting therefrom: Provided,
however, that if the deviation is for the purpose of
(f)  Act of public enemies; loading or unloading cargo or passengers it shall, prima
facie, be regarded as unreasonable.
(g)  Arrest or restraint of princes, rulers, or people, or
seizure under legal process; (5)  Neither the carrier nor the ship shall in any event be
or become liable for any loss or damage to or in
(h)  Quarantine restrictions; 
connection with the transportation of goods in an
(i)  Act or omission of the shipper or owner of the amount exceeding $500 per package of lawful money of
goods, his agent or representative; the United States, or in case of goods not shipped in
packages, per customary freight unit, or the equivalent
(j)  Strikes or lockouts or stoppage or restraint of labor of that sum in other currency, unless the nature and
from whatever cause, whether partial or general: value of such goods have been declared by the shipper
Provided, that nothing herein contained shall be before shipment and inserted in the bill of lading. This
construed to relieve a carrier from responsibility for the declaration, if embodied in the bill of lading, shall be
carrier's own acts;  prima facie evidence, but shall not be conclusive on the
carrier. 
(k)  Riotsand civil commotions; 
By agreement between the carrier, master or agent of
(l)  Saving or attempting to save life or property at sea;  the carrier, and the shipper another maximum amount
than that mentioned in this paragraph may be fixed:
(m)  Wastage in bulk or weight or any other loss or
Provided, that such maximum shall not be less than the
damage arising from inherent defect, quality, or vice of
figure above named. In no event shall the carrier be
the goods;
liable for more than the amount of damage actually
(n)  Insufficiency or packing; sustained.

(o)  Insufficiency or inadequacy of marks;  Neither the carrier nor the ship shall be responsible in
any event for loss damage to or in connection with the
(p)  Latent defects not discoverable by due diligence; transportation of the goods if the nature or value
and  thereof has been knowingly and fraudulently misstated
by the shipper in the bill of lading. 
(q)  Any other cause arising without the actual fault and
privity of the carrier and without the fault or neglect of (6)  Goods of an inflammable, explosive, or dangerous
the agents or servants of the carrier, but the burden of nature to the shipment whereof, the carrier, master or
proof shall be on the person claiming the benefit of this agent of the carrier, has not consented with knowledge

Page 6 of 15
of their nature and character, may at any time before
discharge be landed at any place or destroyed or
rendered innocuous by the carrier without
compensation, and the shipper of such goods shall be
liable for all damages and expenses directly or indirectly
arising out of or resulting from such shipment. If any
such goods shipped with such knowledge and consent
shall become a danger to the ship or cargo, they may in
like manner be landed at any place, or destroyed or
rendered innocuous by the carrier without liability on
the part of the carrier except to general average if any.   carrier or a shipper from entering into any agreement,
SURRENDER OF RIGHTS AND IMMUNITIES AND
INCREASE OF RESPONSIBILITIES AND LIABILITIES
Sec.  5.  A carrier shall be at liberty to surrender in
whole or in part all or any of his rights and immunities
or to increase any of his responsibilities and liabilities
under this Act, provided such surrender or increase shall
be embodied in the bill of lading issued to the shipper.
The provisions of this Act shall not be applicable to
charter parties; but if bills of lading are issued in the
case of a ship under a charter party, they shall comply
with the terms of this Act. Nothing in this Act shall be
held to prevent the insertion in a bill of lading of any
lawful provisions regarding general average.  
SPECIAL CONDITIONS
Sec.  6.  Notwithstanding the provisions of the preceding
section, a carrier, master or agent of the carrier, and a
shipper shall, in regard to any particular goods be at
liberty to enter into any agreement in any terms as to
the responsibility and liability of the carrier for such
goods, and as to the rights and immunities of the carrier
in respect to such goods, or his obligation to
seaworthiness, (so far as the stipulation regarding
seaworthiness is contrary to public policy), or the care
or diligence of his servants or agents in regard to the
loading, handling, stowage, carriage, custody, care and
discharge of the goods carried by sea; provided, that in
this case no bill of lading has been or shall be issued and
that the terms agreed shall be a non-negotiable
document and shall be marked as such.  
Any agreement so entered into shall have full legal
effect: Provided, that this section shall not apply to
ordinary commercial shipments made in the ordinary
course of trade but only to other shipments where the
character or condition of the property to be carried or
the circumstances, terms and conditions under which
the carriage is to be performed are such as reasonably
to justify a special agreement.
Sec.  7.  Nothing contained in this Act shall prevent a
stipulation, condition, reservation, or exemption as to
the responsibility and liability of the carrier or the ship
for the loss or damage to or in connection with the
custody and care and handling of goods prior to the
loading on and subsequent to the discharge from the
ship on which the goods are carried by sea.
Sec.  8.  The provisions of this Act shall not affect the
rights and obligations of the carrier under the provisions
of the Shipping Act, 1916, or under the provisions of
Sections 4281 to 4292, inclusive, of the Revised Statutes
of the United States, or of any amendments thereto, or
under the provisions of any other enactment for the
time being in force relating to the limitation of the
liability of the owners of seagoing vessels.  
TITLE II
Sec.  9.  Nothing contained in this Act shall be construed
as permitting a common carrier by water to discriminate
between competing shippers similarly placed in time
and circumstances, either (a) with respect to their right
to demand and receive bills of lading subject to the
provisions of this Act; or (b) when issuing such bills of
lading either in the surrender of any of the carrier's
rights and immunities or in the increase of any of the
carrier's responsibilities and liabilities pursuant to
Section 5, Title I, of this Act; (c) in any other way
prohibited by the Shipping Act, 1916, as amended. 
Sec.  10.  (Not applicable to the Philippines.) 
Sec.  11.  When under the custom of any trade the
weight of any bulk cargo inserted in the bill of lading is a
Page 7 of 15
weight ascertained or accepted by a third party other hereof, and any provisions thereof which may have
than the carrier or the shipper and the fact that the been suspended shall thereby be reinstated and again
weight as ascertained or accepted is stated in the bill of apply to contracts thereafter made for carriage of goods
lading, then notwithstanding anything in this Act, the by sea. Any proclamation of suspension or rescission of
bill of lading shall not be deemed to be prima facie any such suspension shall take effect on the date named
evidence against the carrier of the receipt of goods of therein, which date shall be not less than ten days from
the weight so inserted in the bills of lading, and the the issue of the proclamation.
accuracy thereof at the time of shipment shall not be
deemed to have been guaranteed by the shipper.  Any contract for the carriage of goods by sea, subject to
the provisions of this Act, effective during any period
Sec.  12.  (Not applicable to the Philippines.)  when Title I hereof, or any part thereof, is suspended,
shall be subject to all provisions of law now or hereafter
Sec.  13.  This Act shall apply to all contracts for carriage applicable to that part of Title I which may have thus
of goods by seas to or from ports of the United States in been suspended. 
foreign trade. As used in this Act the term "United
States" includes its districts, territories, and possessions: Sec.  15.  This Act shall take effect ninety days after the
Provided, however, that the Philippine Legislature may date of its approval; but nothing in this Act shall apply
by law exclude its application to transportation to or during a period not to exceed one year following its
from ports of the Philippine Islands. The term "foreign approval to any contract for the carriage of goods by
trade" means the transportation of goods between the sea, made before the date on which this Act is approved
ports of the United States and ports of foreign nor to any bill of lading or similar document of title
countries. Nothing in this Act shall be held to apply to issued, whether before or after such date of approval in
contracts for carriage of goods by sea between any port pursuance of any such contract as aforesaid. 
of the United States or its possessions and any other
port of the United States or its possessions: Provided, Sec.  16.  This Act may be cited as the "Carriage of
however, that any bill of lading or similar document of Goods by Sea Act."
the title which is evidence of a contract for the carriage
of goods by sea between such ports, containing an
express statement that it shall be subject to the
provisions of this Act; shall be subjected hereto as fully
as if subject hereto by the express provisions of this Act:
Provided, further, that every bill of lading or similar
document of title which is evidence of a contract for the
carriage of goods by sea from ports of the United States
in foreign trade, shall contain a statement that it shall
have effect subject to the provisions of this Act.  

Sec.  14.  Upon the certification of the Secretary of

Commerce that the foreign commerce of the United
States in its competition with that of foreign nations is
prejudiced by the provisions, or any of them, of the Title
I of this Act, or by the laws of any foreign country or
countries relating to the carriage of goods by sea, the
President of the United States may, from time to time
by proclamation, suspend any or all provisions of Title I
of this Act for such periods of time or indefinitely as
CODE OF COMMERCE OF THE
may be designated in the proclamation. The President PHILIPPINES
may at any time rescind such suspension of Title I

Page 8 of 15
COMMERCIAL CONTRACTS FOR
TRANSPORTATION
ARTICLE 349.    A contract of transportation by land or
water ways of any kind shall be considered commercial:
1.    When it has for its object merchandise or 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 to the 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 which shipment is 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 should be 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 the bills 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 a statement 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 of passengers, 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, no exceptions 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 carrier has 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 lading subscribed 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 respective
claims, 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 charged
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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.
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.cdta
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
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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 hecannot 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.
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.
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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 declaration of the merchandise. If the
carrier has acted by virtue of a formal order of the
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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.

Kinds of Transportation Contracts

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1.  Contract to carry - an agreement to carry the
passenger or cargo at some future date; it
is consensual and therefore perfected by mere consent.
There is a consensual "contract to carry" goods when
the carrier agrees to accept and transport goods at
some future date. There is a perfected "contract to
carry passengers even if no tickets have been issued as
long as there is a meeting of the minds regarding the
subject matter and consideration.
2. Contract of carriage - a contract where the
passenger boards the carrier or the cargo is loaded on
it; this is considered a real contract because it is only
when the carrier is actually used that it can be said to
have assumed the obligation as carrier.
There is perfected contract of carriage when a chance
passenger had been allowed to check-in at the counter
in lieu of a "no show" confirmed passenger, passed
through customs and immigration, boarded the shuttle
bus plane and was going up the staircase to the plane,
with his baggage already loaded on the plane. (Korean
Airlines vs. CA, 234 SCRA 717, 723)
When the goods are "unconditionally delivered and
received by the carrier", the contract of carriage is
perfected and becomes a real contract. It continues
until the passenger arrives at his destination or the
cargo is delivered to the consignee at its destination.
(British Airways vs. CA, infra)
Parties to contract of transportation
1.  Carrier or conductor - "One who binds himself to
transport persons, things, or news as the case may
be," or "one employed in or engaged in the business
of carrying goods for others for hire; those persons
or corporations who undertake to transport or
convey goods, property or persons, from one place
to another, gratuitously or for hire.
2.  Passenger - The person who is the object of
transportation. (LFM, P. 192); In transportation of
passengers, the party who agrees to present his own
person or those of others. (AFA, Pp. 3, 4)
3. Shipper or consignor - The party whose goods are to
be transported(LFM, P. 192).
4.  Consignee - "The party to whom the carrier is to
deliver the things being transported," "or one to
whom the carrier may lawfully make delivery in
accordance with its contract of carriage." (AFA, Pp. 3,
4;) the person to whom the goods are sent (LFM, P.
192). The consignor/shipper and the consignee may
be one and the same person.
Common carriers or public carriers - Persons,
corporations, firms or associations engaged in the
business of carrying or transporting passengers or
goods, or both, by land, water or air, for
compensation, offering their services to the public.
(NCC, Art. 1732).
Private carriers or special carriers - Those who transport
or undertake to transport in a particular instance
for hire or reward.
Air Carrier Defined --- An Air Carrier is a person who
undertakes, whether directly or indirectly, or by a
lease or any other arrangements, to engage in air
transportation or air commerce (Sec. 3[f], R.A. No.
776, as amended).
Requirement for engaging in air commerce
No person shall engage in air commerce and/or
air transportation, foreign and/or domestic unless there
is in force a Certificate of Public Convenience and
Necessity issued by the Civil Aeronautics Board (Sec. 11,
R.A. No. 776, as amended by PD 1462).
Authority of airlines over the baggages of passenger or
shipper
Aircraft companies which operate as public utilities or
operators of aircraft which are for hire are authorized to
open and investigate suspicious packages and cargoes in
the presence of the owner or shipper, of his authorized
representatives if present; if the owner, shipper or his
representative refuses to have the same opened and
inspected, the airline or air carrier is authorized to
refuse to accept the baggage. (R.A. No. 6235, Sec. 8)
Page 14 of 15
The airline company is liable for the death of all the
passengers of an airplane caused by an explosion of a
bomb in a luggage loaded on board the aircraft. The
ruling in the case of Nocum vs. Laguna Tayabas Bus Co.,
30 SCRA 69 (supra, P. 73) cannot apply in this case
because while there is no law that authorizes bus
operators to open the luggage of their passengers, R.A.
No. 6235 gives the airline companies operating as public
utilities the authority to open and investigate packages
and cargoes being loaded on board the aircraft. Should
the personnel of the airline company fail to discover the
explosive devise, it could only be due to their failure to
exercise the utmost diligence of very cautious persons
for which the air carrier could be made liable (Asked,
1971 and 1992 Bar Exams.).

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