1.A. What is a common carrier?

(5 pts)

Under Article 1732 of the Civil Code, a common carrier is a person, corporation, firm or association
engaged in the business of carrying or transporting passengers or goods or both, by land, water,
or air, for compensation, offering its services to the public.

B.Is J&T Express a common carrier? Why or why not? (10 pts)

Yes. J&T Express is a common carrier. Under the Civil Code, a common carrier is defined as a
person or a corporation engaged in the business of carrying or transporting passengers or goods
or both, by land, water, or air, for compensation, which is offered to the general public. J&T Express
is a corporation whose principal business, which is held out to the general public, is to carry goods
sent by a shipper or a seller to the consignee or the buyer of said goods.

C. Is a travel agency a common carrier? Why or why not? (5 points)

No. A travel agency is not a common carrier because it is not engaged in the business of
transporting persons or goods from one place to another. Its business activity is making travel
arrangements on behalf of its clientele for a fee. Therefore, a travel agency does not fit the
definition of a common carrier provided under the Civil Code which states that a common carrier
is a person, corporation or firm which is engaged in the business of transporting persons or goods
for compensation, offering its services to the public. (Page 54, Palabrica)

2. Differentiate diligence of a good father of a family from extraordinary diligence. (10 pts)

Diligence of a good father of a family requires reasonable care which an ordinarily prudent person
would have exercised in a similar situation. It is required by the Civil Code to be observed by parties
in ordinary contracts. On the other hand, extraordinary diligence requires the utmost diligence of
very cautious persons with due regard for all the circumstances. It is specifically required by the
Civil Code to be observed by common carriers when transporting or carrying goods or passengers,
by reason of the nature of their business and public policy.

3. Differentiate a common carrier from a private carrier. (5 points)

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, while private carriers are those persons or entities transporting
goods or persons by special agreement in a particular instance. A common carrier is required to
exercise extraordinary diligence in the carriage of goods or passengers. On the other hand, a
private carrier needs to exercise ordinary diligence only. In case of loss, destruction, or
deterioration of goods, common carriers are presumed to have been at fault or to have acted
negligently, while no such presumption applies to private carriers.

4. In a contract of carriage of passengers by land, when is such contract perfected and

when does it end? (15 points)

In a contract of carriage of passengers by land, such contract is perfected at the moment the riders
attempt to board the common carrier. By stopping near the riders, the common carrier is in effect
making a continuous offer to the riders. The act of attempting to board implies the acceptance by
the passenger of such offer. A contract of carriage of passengers by land ends when the passenger
has reached a reasonably safe place after disembarking from the common carrier. (Page 48-49,
Palabrica)

5. A. Explain the contract of adhesion. (5 pts)

A contract of adhesion is one wherein a party imposes a ready-made form of contract on the other.
The one who adheres to the contract is in reality free to reject it entirely; if he adheres, he gives
his consent. Such contracts are not entirely prohibited.

B. Can a common carrier reduce or avoid responsibility for extraordinary diligence by a

stipulation in a contract? Explain (10 pts.)

Yes. A common carrier may reduce or avoid responsibility for extraordinary diligence by a
stipulation in a contract. Article 1744 of the Civil Code provides that “[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.” (Page 144, Palabrica)

6. A. In the 2010 Quirino Grandstand incident where a dismissed police officer took over a
tour bus and Hong Kong tourists were held hostage, can the incident be considered as a
fortuitous event? (5 points)

Yes. The 2010 Quirino Grandstand incident can be considered as a fortuitous event. A fortuitous
event is one which cannot be foreseen or avoided and renders it impossible for the obligor to fulfill
its obligation. The act of the police officer could not have been avoided by the tour bus company,
being an act of a stranger outside its control.

or

No. (Page 95, Palabrica)

B. Is the Hong Kong travel company liable as a common carrier under the Philippine Laws?
Why or why not? (10 points)

No. The Hong Kong travel company is not liable as a common carrier under the Philippine Laws
because such a company is not considered a common carrier under Article 1732 of the Civil Code
which provides that for a person or entity to be considered a common carrier, its business of
transporting passengers or goods must be held out to the general public. In the case of the Hong
Kong travel company, it does not offer its services to the general public. Thus, it cannot be held
liable as a common carrier under the Philippine Laws.