Legal Aspects in Tourism and Hospitality Industry

Nature of Common
Carriers
GROUP 1
BSHM 4A
 What is Carrier?

- a person or company that undertakes the

professional conveyance of goods or people.
Law of Common Carriers
- the primary law that governs common carriers is the Civil
Code of the Philippines as clearly implied in Article 1766
thereof which states “in all matters not regulated by this Code,
the rights and obligations of common carriers shall be governed
by the Code of Commence and special laws.”
Code of Commerce
- is a set of laws designed to regulate commerce. Commercial codes
can facilitate commerce by providing protocols for resolving common
challenges and disputes.
Special Laws
- means acts of parliament or regulations and other acts constituting
law other than the provisions of the Code which deal with particular
matters relevant to any provisions of this Schedule. Special law
means a law applicable to a particular subject.
The LAW
Article 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.

Discussion of the LAW

- a common carrier is defined as one holding itself out to the public as
engaged in the transportation of freight or passenger for hire. It is one
who is in the business of transporting goods or persons for hire, as a
public utility.
Private Carriers
- also called a contract carrier, is one
that undertakes by special
agreement, in a particular instance
only, to transport persons or property
from one place to another.
 Charter Party
- a contract whereby a ship owners
agrees to place his ship, or part of it a
disposal of a person (the charterer) for
the carriage of goods from one part to
another on being paid freight.
 Case:
The MV Vlasons I is a vessel which renders tramping service and as such, does not transport cargo or shipment
for the general public. Its services are available only to specific persons who enter into special contract of charter
party with its owner. The term “FIOST” which is used in the shippings business is standard provision in the
NANYOZAI Charter Party which stands for “Freight In and Out including Stevedoring and Trading”, which
means the handling, loading and unloading of the cargoes are the esponsibility of the city owner, charterer.
Moreover, it is in the capacity that its owner, vlasons shipping Inc.. Entered into a contract of affreightment or
contract of voyage charter hire with National Steel Corporations. Is MV Vlasons I a common carrier?
 Legal Opinion:
MV Vlasons I is classified as a private carriers. It has been held that the true test of a common carriers is the carriage of
passengers or goods, provided it has space, for all who avail themselves of its transportation service for a fee. A carrier that
does not qualify under the above test is deemed a private carrier. Generally, private is undertaken by special agreement and
the carrier does not hold himself out to carry goods for the general public. The most typical, although not only form of
private carriage, is the charter party, a maritime contract by which the charterer, a party other than the ship owner, obtains
the use and service of all or some part of ship for a period of time or a voyage or voyages. In this regard, distinction must
be made between a voyage charter or time charter, the same is limited to the ship only, and its crew members are still under
the direct control of the ship owner, in which case, such ship may be classified as a common carrier. However, a bareboat of
demise charter includes both the vessels and crew under the direct control of the charterer, in such case, the ship may
already be classified as a private carriers.
THANK YOU!