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. cd
The ownership of a vessel shall likewise be acquired by possession in good faith,
continued for three
years, with a just title duly recorded.
In the absence of any of these requisites, continuous possession for ten years shall
be necessary in order
to acquire ownership.
A captain may not acquire by prescription the vessel of which he is in command.
ARTICLE 574. Builders of vessels may employ the materials and follow, with respect
to their
construction and rigging, the systems most suitable to their interests. Ship owners
and seamen shall be
subject to what the laws and regulations of the public administration on navigation,
customs, health,
safety of vessels, and other similar matters.
ARTICLE 575. Co-owners of vessels shall have the right of repurchase and
redemption in sales
made to strangers, but they may exercise the same only within the nine days
following the inscription
of the sale in the registry, and by depositing the price at the same time.
ARTICLE 576. In the sale of a vessel it shall always be understood as included the
rigging,
masts, stores and engine of a streamer appurtenant thereto, which at the time
belongs to the vendor.
The arms, munitions of war, provisions and fuel shall not be considered as included
in the sale.
The vendor shall be under the obligation to deliver to the purchaser a certified copy
of the record sheet
of the vessel in the registry up to the date of the sale.
ARTICLE 577. If the alienation of the vessel should be made while it is on a voyage,
the
freightage which it earns from the time it receives its last cargo shall pertain entirely
to the purchaser,
and the payment of the crew and other persons who make up its complement for the
same voyage shall
be for his account.
If the sale is made after the vessel has arrived at the port of its destination, the
freightage shall pertain
to the vendor, and the payment of the crew and other individuals who make up its
complement shall be
for his account, unless the contrary is stipulated in either case.
ARTICLE 578. If the vessel being on a voyage or in a foreign port, its owner or
owners should
voluntarily alienate it, either to Filipinos or to foreigners domiciled in the capital or in
a port of another
country, the bill of sale shall be executed before the consul of the Republic of the
Philippines at the port
where it terminates its voyage and said instrument shall produce no effect with
respect to third persons
if it is not inscribed in the registry of the consulate. The consul shall immediately
forward a true copy
of the instrument of purchase and sale of the vessel to the registry of vessels of the
port where said
vessel is inscribed and registered.
In every case the alienation of the vessel must be made to appear with a statement
of whether the
vendor receives its price in whole or in part, or whether he preserves in whole or in
part any claim on
said vessel. In case the sale is made to a Filipino, this fact shall be stated in the
certificate of navigation.
aisadc
When a vessel, being on a voyage, shall be rendered useless for navigation, the
captain shall apply to
the competent judge on court of the port of arrival, should it be in the Philippines; and
should it be in a
foreign country, to the consul of the Republic of the Philippines, should there be one,
or, where there is
none, to the judge or court or to the local authority; and the consul, or the judge or
court, shall order an
examination of the vessel to be made.
If the consignee or the insurer should reside at said port, or should have
representatives there, they must
be cited in order that they may take part in the proceedings on behalf of whoever
may be concerned.
ARTICLE 579. After the damage to the vessel and the impossibility of her being
repaired, in
order to continue the voyage had been shown, its sale at public auction shall be
ordered, subject to the
following rules:
1. The hull of the vessel, its rigging, engines, stores, and other articles shall be
appraised, after
making an inventory, said proceedings to be brought to the notice of the persons
who may wish to take
part in the auction.
2. The order or decree ordering the auction to be held shall be posted in the usual
places, an
announcement thereof to be inserted in the Official Gazette and in two of the
newspapers of the largest
circulation of the port where the auction is to be held, should there be any.
The period which may be fixed for the auction shall not be less than twenty days.
3. These announcements shall be repeated every ten days, and their publication
shall be made to
appear in the records.
4. The auction shall be held on the day fixed, with the formalities prescribed in the
common law
for judicial sales.
5. If the sale should take place while the vessel is in a foreign country, the special
provisions
governing such cases shall be observed.
ARTICLE 580. In all judicial sales of any vessel for the payment of creditors, the
following shall
have preference in the order stated 2
1. The credit in favor of the public treasury proven by means of an official certificate
of competent
authority.
2. The judicial costs of the proceedings, according to an appraisement approved by
the judge or
court.
3. The pilotage charges, tonnage dues, and the other sea or port charges, proven by
means of
proper certificates of the officers intrusted with the collection thereof.
4. The salaries of the depositaries and keepers of the vessel and any other
expenses for its
preservation from the time of arrival at the port until the sale, which appear to have
been paid or be due
by virtue of an account verified and approved by the judge or court. cdtai
5. The rent of the warehouse where the rigging and stores of the vessel have been
taken care of,
according to contract.
6. The salaries due the captain and crew during its last voyage, which shall be
verified by means
of the liquidation to be made in view of the lists and of the books of account of the
vessel, approved by
the chief of the Bureau of Merchant Marine, where there is one, and in his absence
by the consul or
judge or court.
7. The reimbursement for the goods of the freight which the captain may have sold in
order to
repair the vessel, provided that the sale has been ordered through a judicial
proceedings held with the
formalities required in such cases, and recorded in the certificate of registry of the
vessel.
8. The part of the price which has not been paid to the said vendor, the unpaid
credits for materials
and labor in the construction of the vessel, when it has not navigated, and those
arising from the repair
and equipment of the vessels and from its provisioning with victuals and fuel during
the last voyage.
In order that the credits provided for in this subdivision may enjoy this preference,
they must appear by
contracts recorded in the registry of vessels, or if they were contracted for the vessel
while on a voyage
and said vessel has not returned to the port where it is registered, they must be
made with the
authorization required for such cases and annotated in the certificate of registration
of the vessel. cdtai
9. The amount borrowed on bottomry on the hull, keel, tackle, and stores of the
vessel before its
departure, proven by means of the contract executed according to law and recorded
in the registry of
vessels; those borrowed during the voyage with the authorization mentioned in the
preceding
subdivision, satisfying the same requisites; and the insurance premium, proven by
the insurance policy
or a certificate taken from the books of the broker.
10. The indemnity due the shipper for the value of the goods shipped which were not
delivered to
the consignees, or for averages suffered for which the vessel is liable, provided that
either appear in a
judicial or arbitration decision.
ARTICLE 581. If the proceeds of the sale should not be sufficient to pay all the
creditors
included in one number or grade, the residue shall be divided among them pro rata.
ARTICLE 582. After the bill of the judicial sale at public auction has been executed
and
inscribed in the registry of vessels, all the other liabilities of the vessel in favor of the
creditors shall be
considered extinguished.
But if the sale should have been voluntary and should have been made while the
vessel was on a
voyage, the creditors shall preserve their rights against the vessel until it returns to
the port of her
registry, and three months after the inscription of the sale in the registry of vessel or
the arrival.
ARTICLE 583. If while on a voyage the captain should find it necessary to contract
one or more
of the obligations mentioned in subdivisions 8 and 9 of Article 580, he shall apply to
the judge or court
if he is in Philippine territory, and otherwise to the consul of the Republic of the
Philippines, should
there be one, and, in his absence, to the judge or court or proper local authority,
presenting the
certificate of the registration sheet treated of in Article 612 and the instruments
proving the obligation
contracted.
The judge or court, the consul, or the local authority, as the case may be, in view of
the result of the
proceedings instituted, shall make a temporary memorandum of their result in the
certificate, in order
that it may be recorded in the registry when the vessel returns to the port of its
registry, or so that it can
be admitted as a legal and preferred obligation in case of sale before its return, by
reason of the sale of
the vessel on account of a declaration of unseaworthiness.
The omission of this formality shall make the captain personally liable for the credits
prejudiced on his
account.
ARTICLE 584. The vessels subject to liability for the credits mentioned in Article 580
may be
attached and judicially sold in the manner prescribed in Article 579, in the port in
which they may be
found, at the instance of any of the creditors; but if they should be loaded and ready
to sail, the
attachment may not be effected except for debts contracted to prepare and provision
the vessel for the
same voyage, and even then the attachment shall be dissolved if any person
interested in its sailing
should give a bond for the return of the vessel within the period fixed in the certificate
of navigation
binding himself to pay the indebtedness insofar as it may be legal, should it fail to do
so, even if this
failure be due to fortuitous event.
For debts of any other kind whatsoever not comprised within the said Article 580, the
vessel may be
attached only in the port of her registry.
ARTICLE 585. For all purposes of law not modified or restricted by the provisions of
this Code,
vessels shall continue to be considered as personal property.

TITLE TWO
PERSONS WHO TAKE PART IN MARITIME COMMERCE
SECTION ONE
SHIPOWNERS AND SHIP AGENTS
ARTICLE 586. The shipowner and the ship agent shall be civilly liable for the acts of
the captain
and for the obligations contracted by the latter to repair, equip, and provision the
vessel, provided the
creditor proves that the amount claimed was invested for the benefit of the same.
By ship agent is understood the person entrusted with provisioning or representing
the vessel in the port
in which it may be found.
ARTICLE 587. The ship agent shall also be civilly liable for the indemnities in favor of
third
persons which may arise from the conduct of the captain in the care of the goods
which he loaded on
the vessel; but he may exempt himself therefrom by abandoning the vessel with all
her equipments and
the freight it may have earned during the voyage.
ARTICLE 588. Neither the shipowner nor the ship agent shall be liable for the
obligations
contracted by the captain, if the latter exceeds the powers and privileges pertaining
to him by reason of
his position or conferred upon him by the former.
Nevertheless, if the amounts claimed were invested for the benefit of the vessel, the
responsibility
therefor shall devolve upon its owner or agent.
ARTICLE 589. If two or more persons should be part owners of a merchant vessel, a
partnership
shall be presumed as established by the co-owners.
This partnership shall be governed by the resolutions of the majority of the members.
If the part owners should not be more than two, the disagreement of views, if any,
shall be decided by
the vote of the member having the largest interest. If the interests are equal, it should
be decided by lot.
The person having the smallest share in the ownership shall have one vote; and
proportionately the
other part owners as many votes as they have parts equal to the smallest one.
aisadc
A vessel may not be detained, attached or levied upon in execution in its entirety, for
the private debts
of a part owner, but the proceedings shall be limited to the interest which the debtor
may have in the
vessel, without interfering with the navigation.
ARTICLE 590. The co-owners of a vessel shall be civilly liable in the proportion of
their
interests in the common fund, for the results of the acts of the captain, referred to in
Article 587.
Each co-owner may exempt himself from this liability by the abandonment, before a
notary, of the part
of the vessel belonging to him.
ARTICLE 591. All the part owners shall be liable, in proportion to their respective
ownership,
for the expenses for repairing the vessel, and for other expenses which are incurred
by virtue of a
resolution of the majority.
They shall likewise be liable in the same proportion for the expenses for the
maintenance, equipment,
and provisioning of the vessel, necessary for navigation.
ARTICLE 592. The resolution of the majority with regard to the repair, equipment,
and
provisioning of the vessel in the port of departure shall bind the minority, unless the
minority members
renounce their interests, which must be acquired by the other co-owners, after a
judicial appraisement
of the value of the portion or portions assigned.
The resolutions of the majority relating to the dissolution of the partnership and sale
of the vessel shall
also be binding on the minority.
The sale of the vessel must be made at public auction, subject to the provisions of
the law of civil
procedure, unless the co-owners unanimously agree otherwise, saying always the
right of repurchase
and redemption provided for in Article 575.
ARTICLE 593. The owners of a vessel shall have preference in her charter over
other persons,
under the same conditions and price. If two or more of them should claim this right,
the one having the
greater interest shall be preferred; and should they have equal interests, the matter
shall be decided by
lot.
ARTICLE 594. The co-owners shall elect the manager who is to represent them in
the capacity of
ship agent.
The appointment of director or ship agent shall be revocable at the will of the
members.
ARTICLE 595. The ship agent, whether he is at the same time the owner of the
vessel, or a
manager for an owner or for an association of co-owners, must have the capacity to
trade and must be
recorded in the merchant's registry of the province.
The ship agent shall represent the ownership of the vessel, and may, in his own
name and in such
capacity, take judicial and extrajudicial steps in matters relating to commerce.
ARTICLE 596. The ship agent may discharge the duties of captain of the vessel,
subject in every
case to the provision of Article 609.
If two or more co-owners apply for the position of captain, the disagreement shall be
decided by a vote
of the members; and if the vote should result in a tie, it shall be decided in favor of
the co-owner having
the larger interest in the vessel.
If the interests of the applicants should be equal, and there should be a tie, the
matter shall be decided
by lot.
ARTICLE 597. The ship agent shall designate and come to terms with the captain,
and shall
contract in the name of the owners, who shall be bound in all that refer to repairs,
details of equipment,
armament, provisions of food and fuel, and freight of the vessel, and, in general, in
all that relate to the
requirements of navigation.
ARTICLE 598. The ship agent may not order a new voyage, or make contracts for a
new charter,
or insure the vessel, without the authorization of its owner or resolution of the
majority of the coowners,
unless these powers were granted him in the certificate of his appointment. cdasia
If he insures the vessel without authorization therefore, he shall be subsidiarily liable
for the solvency
of the insurer.
ARTICLE 599. The ship agent managing for an association shall render to his
associates an
account of the results of each voyage of the vessel, without prejudice to always
having the books and
correspondence relating to the vessel and to its voyages at their disposal.
ARTICLE 600. After the account of the managing agent has been approved by a
relative
majority, the co-owners shall pay the expenses in proportion to their interest, without
prejudice to the
civil or criminal actions which the minority may deem fit to institute afterwards.
In order to enforce the payment, the managing agent shall be entitled to an
executory action ("accion
ejecutiva"), which shall be instituted by virtue of a resolution of the majority, and
without further
proceedings than the acknowledgment of the signatures of the persons who voted
for the resolution.
ARTICLE 601. Should there be any profits, the co-owners may demand of the
managing agent
the amount corresponding to their interests by means of an executory action ("accion
ejecutiva"),
without any other requisite than the acknowledgment of the signatures on the
instrument approving the
account.
ARTICLE 602. The ship agent shall indemnify the captain for all the expenses he
may have
incurred with funds of his own or of others, for the benefit of the vessel.
ARTICLE 603. Before the vessel sets out to sea the ship agent may at his discretion
discharge the
captain and members of the crew whose contracts are not for a definite period or
voyage, paying them
the salaries earned according to their contracts, and without any indemnity
whatsoever, unless there is
an express and specific agreement in respect thereto.
ARTICLE 604. If the captain or any other member of the crew should be discharged
during the
voyage, they shall receive their salary until they return to the port where the contract
was made, unless
there should be just cause for the discharge, all in accordance with Article 636 and
following of this
Code.
ARTICLE 605. If the contracts of the captain and members of the crew with the ship
agent
should be for a definite period or voyage, they may not be discharged until after the
fulfillment of their
contracts, except by reason of insubordination in serious matters, robbery, theft,
habitual drunkenness,
or damage caused to the vessel or to its cargo through malice or manifest or proven
negligence.
ARTICLE 606. If the captain should be a co-owner of the vessel, he may not be
discharged
unless the ship agent returns to him the amount of his interest therein, which, in the
absence of
agreement between the parties, shall be appraised by experts appointed in the
manner established in the
law of civil procedure.
ARTICLE 607. If the captain who is a co-owner should have obtained the command
of the vessel
by virtue of a special agreement contained in the articles of association, he may not
be deprived of his
office except for the causes mentioned in Article 605.
ARTICLE 608. In case of the voluntary sale of the vessel, all contracts between the
ship agent
and the captain shall terminate, reserving to the latter his right to the indemnity which
may pertain to
him, according to the agreements made with the ship agent.
They vessel sold shall remain subject to the security of the payment of said
indemnity if, after the
action against the vendor has been instituted, the latter is found to be insolvent.
SECTION TWO
CAPTAINS AND MASTERS OF VESSELS
ARTICLE 609. Captains, masters or patrons of vessels must be Filipinos, have legal
capacity to
contract in accordance with this code, and prove the skill, capacity, and qualifications
necessary to
command and direct the vessel, as established by marine or navigation laws,
ordinances, or regulations,
and must not be disqualified according to the same for the discharge of the duties of
the position. cdt
If the owner of a vessel desires to be the captain thereof, without having the legal
qualifications
therefor, he shall limit himself to the financial administration of the vessel, and shall
intrust the
navigation to a person possessing the qualifications required by said ordinances and
regulations.
ARTICLE 610. The following powers shall be inherent in the position of captain,
master or
patron of a vessel:
1. To appoint or make contracts with the crew in the absence of the ship agent, and
to propose said
crew, should said agent be present; but the ship agent may not employ any member
against the
captain's express refusal.
2. To command the crew and direct the vessel to the port of its destination, in
accordance with the
instructions he may have received from the ship agent.
3. To impose, in accordance with the contracts and with the laws and regulations of
the merchant
marine, and when on board the vessel, correctional punishment upon those who fail
to comply with his
orders or are wanting in discipline, holding a preliminary hearing on the crimes
committed on board the
vessel on the seas, which crimes shall be turned over to the authorities having
jurisdiction over the
same at the first port touched.
4. To make contracts for the charter of the vessel in the absence of the ship agent or
of its
consignee, acting in accordance with the instructions received and protecting the
interests of the owner
with utmost care.
5. To adopt all proper measures to keep the vessel well supplied and equipped,
purchasing all that
may be necessary for the purpose, provided there is no time to request instruction
from the ship agent.
6. To order, in similar urgent cases while on a voyage, the repairs on the hull and
engines of the
vessel and in its rigging and equipment, which are absolutely necessary to enable it
to continue and
finish its voyage; but if he should arrive at a point where there is a consignee of the
vessel, he shall act
in concurrence with the latter.
ARTICLE 611. In order to comply with the obligations mentioned in the preceding
article, the
captain, when he has no funds and does not expect to receive any from the ship
agent, shall obtain the
same in the successive order stated below:
1. By requesting said funds from the consignee of the vessel or correspondents of
the ship agent.
2. By applying to the consignees of the cargo or to those interested therein.
3. By drawing on the ship agent.
4. By borrowing the amount required by means of a loan on bottomry.
5. By selling a sufficient amount of the cargo to cover the sum absolutely
indispensable for the
repair of the vessel and to enable it to continue its voyage. cd
In these two last cases he must apply to the judicial authority of the port, if in the
Philippines, and to
the consul of the Republic of the Philippines if in a foreign country, and where there
is none, to the
local authority, proceeding in accordance with the provisions of Article 583, and with
the provisions of
the law of civil procedure.
ARTICLE 612. The following obligations shall be inherent in the office of captain:
1. To have on board before starting on a voyage a detailed inventory of the hull,
engines, rigging,
spare-masts, tackle, and other equipment of the vessel; the royal or the navigation
certificate; the roll of
the persons who make up the crew of the vessel, and the contracts entered into with
them; the lists of
passengers; the bill of health; the certificate of the registry proving the ownership of
the vessel and all
the obligations which encumber the same up to that date; the charter parties or
authenticated copies
thereof; the invoices or manifests of the cargo, and the memorandum of the visit or
inspection by
experts, should it have been made at the port of departure.
2. To have a copy of this code on board.
3. To have three folioed and stamped books, placing at the beginning of each one a
memorandum
of the number of folios it contains, signed by the maritime authority, and in his
absence by the
competent authority.
In the first book, which shall be called "log book," he shall enter day by day the
condition of the
atmosphere, the prevailing winds, the courses taken, the rigging carried, the power
of the engines used
in navigation, the distances covered, the maneuvers executed, and other incidents of
navigation; he
shall also enter the damage suffered by the vessel in her hull, engines, rigging, and
tackle, no matter
what its cause may be, as well as the impairment and damage suffered by cargo,
and the effect and
importance of the jettison, should there be any; and in cases of serious decisions
which require the
advice or a meeting of the officers of the vessel, or even of the crew and
passengers, he shall record the
decisions adopted. For the information indicated he shall make use of the binnacle
book and of the
steam of engine book kept by the engineer.
In the second book called the "accounting book," he shall record all the amounts
collected and paid for
the account of the vessel, entering specifically article by article, the source of the
collection and the
amounts spent for provisions, repairs, acquisitions of equipment or goods, fuel, food,
outfits, wages,
and other expenses of whatever nature they may be. He shall furthermore enter
therein a list of all the
members of the crew, stating their domiciles, their wages and salaries, and the
amounts they may have
received on account, directly or by delivery to their families.
In the third book, called "freight book," he shall record the loading and discharge of
all the goods,
stating their marks and packages, names of the shippers and of the consignees,
ports of loading and
unloading, and the freightage they give. In this same book he shall record the names
and places of
sailing of the passengers, the number of packages in their baggage, and the price of
passage.
4. Before receiving cargo, to make with the officers of the crew and two experts, if
required by the
shippers and passengers, an examination of the vessel, in order to ascertain
whether it is water-tight,
with the rigging and engines in good condition, and with the equipment required for
good navigation,
preserving under his responsibility a certificate of the memorandum of his inspection,
signed by all
those who may have taken part therein.
The experts shall be appointed, one by the captain of the vessel and another by
those who request its
examination, and in case of disagreement a third shall be appointed by the marine
authority of the port
or by the authority, exercising his functions.
5. To remain constantly on board the vessel with the crew while the cargo is being
taken on board
and to carefully watch the stowage thereof; not to consent to the loading of any
merchandise or matter
of a dangerous character, such as inflammable or explosive substances, without the
precautions which
are recommended for their packing, handling and isolation; not to permit the carriage
on deck of any
cargo which by reason of its arrangement, volume, or weight makes the work of the
sailors difficult,
and which might endanger the safety of the vessel; and if, on account of the nature
of the merchandise,
the special character of the shipment, and principally the favorable season in which it
is undertaken,
merchandise may be carried on deck, he must hear the opinion of the officers of the
vessel and have the
consent of the shippers and of the ship agent.
6. To demand a pilot at the expense of the vessel whenever required by the
navigation, and
principally when he has to enter a port, canal, or river, or has to take a roadstead or
anchoring place
with which neither he nor the officers and crew are acquainted.
7. To be on deck on reaching land and to take command on entering and leaving
ports, canals,
roadsteads, and rivers, unless there is a pilot on board discharging his duties. He
shall not spend the
night away from the vessel except for serious causes or by reason of official
business. cdtai
8. To present himself, when making a port in distress, to the maritime authority if in
the
Philippines and to the consul of the Republic of the Philippines if in a foreign country,
before twentyfour
hours have elapsed, and to make a statement of the name registry, and port of
departure of the
vessel, of its cargo, and the cause of arrival which declaration shall be visaed by the
authority or the
consul, if after examining the same it is found to be acceptable, giving the captain
the proper certificate
proving his arrival in distress and the reasons therefor. In the absence of the
maritime authority or of
the consul, the declaration must be made before the local authority.
9. To take the necessary steps before the competent authority in order to record in
the certificate of
the vessel in the registry of vessels the obligations which he may contract in
accordance with Article
583.
10. To place under good care and custody all the papers and belongings of any
members of the crew
who might die on the vessel, drawing up a detailed inventory, in the presence of
passengers, or, in their
absence, of members of the crew as witnesses.
11. To conduct himself according to the rules and precepts contained in the
instructions of the ship
agent, being liable for all that which he may do in violation thereof.
12. To inform the ship agent from the port at which the vessel arrives, of the reason
of his arrival,
taking advantage of the semaphore, telegraph, mail, etc., as the case may be; to
notify him of the cargo
he may have received, stating the names and domiciles of the shippers, freightage
earned, and amounts
borrowed on bottomry loan; to advise him of his departure, and of any operation and
date which may
be of interest to him.
13. To observe the rules with respect to situation, lights and maneuvers in order to
avoid collisions.
14. To remain on board, in case the vessel is in danger, until all hope to save it is
lost, and before
abandoning it, to hear the officers of the crew, abiding by the decision of the majority;
and if the boats
are to be taken to, he shall take with him, before anything else, the books and
papers, and then the
articles of most value, being obliged to prove, in case of the loss of the books and
papers, that he did all
he could to save them.
15. In case of wreck, to make the proper protest in due form at the first port of arrival,
before the
competent authority or the Philippine consul, within twenty-four hours, specifying
therein all the
incidents of the wreck, in accordance with subdivision 8 of this article.
16. To comply with the obligations imposed by the laws and regulations on
navigation, customs,
health, and others.
ARTICLE 613. A captain who navigates for freight in common or on shares may not
make any
separate transaction for his own account; and should he do so, the profit which may
accrue shall belong
to the other persons interested, and the losses shall be borne by him exclusively.
ARTICLE 614. A captain who, having made an agreement to make a voyage, fails to
perform his
undertaking, without prevented by fortuitous accident or force majeure, shall
indemnify for all the
losses which he may cause without prejudice to the criminal penalties which may be
proper.
ARTICLE 615. Without the consent of the agent, the captain cannot have himself
substituted by
another person; and should he do so, besides being liable for all the acts of the
substitute and bound to
the indemnities mentioned in the foregoing articles, the captain as well as the
substitute may be
discharged by the ship agent.
ARTICLE 616. If the provisions and fuel of the vessel should be consumed before
arriving at the
port of destination, the captain shall order, with the consent of the officers of the
same, the arrival at the
nearest port to get a supply of either; but if there are persons on board who have
provisions of their
own, he may force them to deliver said provision for the common consumption of all
those who may be
on board, paying the price thereof at the same time, or at the latest, at the first port
reached.
ARTICLE 617. The captain may not contract loans on respondentia secured by the
cargo; and
should he do so, the contracts shall be void.
Neither may he borrow money on bottomry for his own transactions, except on the
portion of the vessel
he owns, provided no money has been previously borrowed on the whole vessel,
and there does not
exist any other kind of lien or obligation chargeable against the vessel. If he may do
so, he must state
what interest he has in the vessel.
In case of violation of this article, the principal, interest, and costs shall be for the
personal account of
the captain, and the ship agent may furthermore discharge him.
ARTICLE 618. The captain shall be civilly liable to the ship agent, and the latter to
the third
persons who may have made contracts with the former;
1. For all the damages suffered by the vessel and its cargo by reason of want of skill
or negligence
on his part. If a misdemeanor or crime has been committed, he shall be liable in
accordance with the
Penal Code. cda
2. For all the thefts committed by the crew, reserving his right of action against the
guilty parties.
3. For the losses, fines, and confiscations imposed an account of violation of
customs, police,
health, and navigation laws and regulations.
4. For the losses and damages caused by mutinies on board the vessel or by reason
of faults
committed by the crew in the service and defense of the same, if he does not prove
that he made timely
use of all his authority to prevent or avoid them.
5. For those caused by the misuse of the powers and the non-fulfillment of the
obligations
pertaining to him in accordance with Articles 610 and 612.
6. For those arising by reason of his going out of his course or taking a course which
he should not
have taken without sufficient cause, in the opinion of the officers of the vessel, at a
meeting with the
shippers or supercargoes who may be on board.
No exceptions whatsoever shall exempt him from this obligation.
7. For those arising by reason of his voluntarily entering a port other than that of his
destination,
outside of the cases or without the formalities referred to in Article 612.
8. For those arising by reason of non-observance of the provisions contained in the
regulations on
situation of lights and maneuvers for the purpose of preventing collisions.
ARTICLE 619. The captain shall be liable for the cargo from the time it is delivered to
him at the
dock or afloat alongside the at the port of loading, until he delivers it on the shore or
on the discharging
wharf at the port of unloading, unless the contrary has been expressly agreed upon.
ARTICLE 620. The captain shall not be liable for the damages caused to the vessel
or to the
cargo by force majeure; but he shall always be so for those arising through his own
fault, no agreement
to the contrary being valid.
Neither shall he be personally liable for the obligations he may have contracted for
the repair,
equipment, and provisioning of the vessel, which shall devolve upon the ship agent,
unless the former
has expressly bound himself personally or has signed a bill of exchange or
promissory note in his
name.
ARTICLE 621. A captain who borrows money on the hull, engine, rigging or tackle of
the vessel,
or pledges or sells merchandise or provisions outside of the cases and without the
formalities
prescribed in this Code, shall be liable for the principal, interests, and costs, and
shall indemnify for the
damages he may cause.
He who commits fraud in his accounts shall pay the amount defrauded and shall be
subject to the
provisions of the Penal Code.
ARTICLE 622. If while on a voyage the captain should learn of the appearance of
privateers or
men of war against his flag, he shall be obliged to make the nearest neutral port,
inform his agent or
shippers, and await an occasion to sail under convoy, or until the danger is over or
he has received
express orders from the ship agent or the shippers.
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.
cdasia
After the force majeure has been proved, he shall be exempted from liability.
ARTICLE 624. A captain whose vessel has gone through a hurricane or who
believes that the
cargo has suffered damages or averages, shall make a protest thereon before the
competent authority at
the first port he touches, within twenty-four hours following his arrival and shall ratify
it within the
same period when he arrives at his destination, immediately proceeding with the
proof of the facts, and
he may not open the hatches until after this has been done.
The captain shall proceed in the same manner, if, the vessel having been wrecked;
he is saved alone or
with part of his crew, in which case he shall appear before the nearest authority, and
make a sworn
statement of facts.
The authority or the consul shall verify the said facts receiving sworn statements of
the members of the
crew and passengers who may have been saved; and taking such other steps as
may assist in arriving at
the facts he shall make a statement of the result of the proceedings in the log book
and in that of the
sailing mate, and shall deliver to the captain the original record of the proceedings,
stamped and
folioed, with a memorandum of the folios, which he must rubricate, in order that it
may be presented to
the judge or court of the port of destination.
The statement of the captain shall be accepted if it is in accordance with those of the
crew and
passengers; if they disagree, the latter shall be accepted, always saying proof to the
contrary.
ARTICLE 625. The captain, under his personal responsibility as soon as he arrives
at the port of
destination, should get the necessary permission from the health and customs
officers, and perform the
other formalities required by the regulations of the administration, delivering the
cargo without any
defalcation, to the consignee, and in a proper case, the vessel, rigging, and
freightage to the ship agent.
If by reason of the absence of the consignee or on account of the nonappearance of
a legal holder of the
bills of lading, the captain should not know to whom he is to legally make the delivery
of the cargo, he
shall place it at the disposal of the proper judge or court or authority, in order that he
may determine
what is proper with regard to its deposit, preservation and custody.
SECTION THREE
OFFICERS AND CREW OF VESSELS
ARTICLE 626. In order to be a sailing mate it shall be necessary:
1. To have the qualifications required by the marine or navigation laws or
regulations.
2. Not to be disqualified in accordance therewith for the discharge of his duties.
ARTICLE 627. The sailing mate, as the second chief of the vessel, and unless the
agent orders
otherwise, shall take the place of the captain in cases of absence, sickness, or
death, and shall then
assume all his powers, duties, and responsibilities.
ARTICLE 628. The sailing mate must provide himself with charts of the seas in
which he will
navigate with the astronomical tables and instruments for observation which are in
use and which are
necessary for the discharge of his duties, being liable for the accidents which may
arise by reason of his
omission in this regard.
ARTICLE 629. The sailing mate shall particularly and personally keep a book, folioed
and
stamped on all its pages, denominated "Binnacle Book" with a memorandum at the
beginning stating
the number of folios it contains, signed by the competent authority, and shall enter
therein daily the
distance, the course travelled, the variations of the needle, the leeway, the direction
and force of the
wind, the condition of the atmosphere and of the sea, the rigging set, the latitude and
longitude
observed, the number of furnace heated, the steam pressure, the number of
revolutions, and under the
title "incidents," the maneuvers made, the meeting with other vessels, and all the
details and incidents
which. may occur during the voyage.
ARTICLE 630. In order to change the course and to take the one most convenient
for a good
voyage of the vessel, the sailing mate shall come to an agreement with the captain.
If the latter should
object, the sailing mate shall state to him the proper observations in the presence of
the other officers of
the sea. If the captain should still insist on his negative decision, the sailing mate
shall make the proper
protest, signed by him and by one other officer, in the log book, and shall obey the
captain, who alone
shall be responsible for the consequences of his decision.
ARTICLE 631. The sailing mate shall be responsible for all the damages caused to
the vessel and
the cargo by reason of his negligence or want of skill without prejudice to the criminal
liability which
may arise, if a felony or misdemeanor has been committed. aisadc
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, requesting the
necessary orders
and Instructions of the captain, and giving him prompt information of any occurrence
in which the
intervention of his authority may be necessary.
4. To assign to each sailor the work he is to do on board, in accordance with the
instruction
received and to see that it is promptly and accurately carried out.
5. To take charge under inventory of the rigging and all the equipment of the vessel,
if it should be
laid up, unless the ship agent has ordered otherwise.
With regard to engineers the following rules shall govern:
1. In order to be taken on board as a marine engineer forming part of the
complement of a
merchant vessel, it shall be necessary to have the qualifications which the laws and
regulations require,
and not be disqualified in accordance therewith for the discharge of his duties.
Engineers shall be
considered officers of the vessel but they shall have no authority or intervention
except in matters
referring to the motor apparatus.
2. When there are two or more engineers on board a vessel, one of them shall be
the chief, and the
other engineers and all the personnel of the engines shall be under his orders; he
shall also have charge
of the motor apparatus, the spare parts, the instruments and tools pertaining thereto,
the fuel, the
lubricating material and, finally, whatever is entrusted to an engineer on board a
vessel.
3. He shall keep the engines and boilers in good condition and state of cleanliness,
and shall order
what may be proper in order that they may always be ready to work with regularity,
being liable for the
accidents or damages which his negligence or want of skill may cause to the motor
apparatus, to the
vessel and to the cargo, without prejudice to the criminal liability which may be
proper if there has
been a felony or misdemeanor.
4. He shall not make any change in the motor apparatus, or proceed to repair the
averages he may
have noticed in the same, or change the normal speed of its movement without the
prior authorization
of the captain., to whom, if he should object to their being made, he shall state the
proper observations
in the presence of the other engineers or officers; and if, notwithstanding this, the
captain should insist
on his objection, the chief engineer shall make the proper protests, entering the
same in the engine
book, and shall obey the captain, who, alone shall be responsible for the
consequences of his decision.
5. He shall inform the captain of any average which may occur in the motor
apparatus, and shall
advise him whenever it may be necessary to stop the engines for some time, or
when any other incident
occurs in his department of which the captain should be immediately informed,
besides frequently
advising him of the consumption of fuel and lubricating material.
6. He shall keep a book or registry called the "engine book," in which shall be
entered all the date
referring to the work of the engines, such as, for example, the number of furnaces
heated, the vacuum
in the condenser, the temperature, the degree of saturation of the water in the boilers
the consumption
of fuel and lubricating material, and under the heading of "noteworthy occurrences,"
the averages and
maladjustments which occur in the engines and boilers, the causes thereof and the
means employed to
repair the same likewise, the force and direction of the wind, the rigging set and the
speed of the vessel
shall be stated, taking the information from the Binnacle Book.
ARTICLE 633. The second mate shall take command of the vessel in case of the
inability or
disqualification of the captain and the sailing mate, assuming in such case their
powers and
responsibility.
ARTICLE 634. The captain may make up the crew of his vessel with such number of
men as he
may consider proper, and in the absence of Filipino sailors, he may take on
foreigners residing in the
country, the number thereof not to exceed one-fifth of the crew. If in foreign ports the
captain should
not find a sufficient number of Filipino sailors, he may complete the crew with
foreigners, with the
consent of the consul or marine authorities.
The agreement which the captain may make with the members of the crew and
others who go to make
up the complement of the vessel, to which reference is made in Article 612, must be
reduced to writing
in the account book, without the intervention of a notary public or clerk of court
("escribano"), signed
by the parties thereto and visaed by the marine authority if they be executed in
Philippine territory or
by the consuls or consular agents of the Republic of the Philippines if executed
abroad, stating therein
all the obligations which each one contracts and all the rights he acquires said
authorities taking care
that these obligations and rights are recorded in a clear and definite manner which
give no room for
doubts or claims. cd
The captain shall take care to read to them the articles of this Code which concern
them, stating in said
document that they were read.
If the book contains the requisites prescribed in Article 612, and there should not
appear any signs of
alterations in its entries, it shall be admitted as evidence in questions which may
arise between the
captain and the crew with respect to the agreements contained therein and the
amounts paid on account
of the same.
Every member of the crew may demand of the captain a copy, signed by the latter,
of the agreement
and of the liquidation of his wages, as they appear in the book.
ARTICLE 635. A seaman who has been contracted to serve on a vessel may not
rescind his
contract or fail to comply therewith except by reason of a legitimate impediment
which may have
happened to him.
Neither may he transfer from the service of one vessel to another without obtaining
the written
permission of the captain of the vessel on which he may be.
If, without obtaining said permission, the seaman who has signed for one vessel
should sign for
another one, the second contract shall be void, and the captain may choose between
forcing him to
fulfill the service to which he first bound himself, or at his expense to look for a
person to substitute
him.
Furthermore, he shall lose the wages earned on his first contract, to the benefit of
the vessel for which
he had signed.
A captain who, knowing that a seaman is in the service of another vessel, should
have made a new
agreement with him without having required of him the permission referred to in the
preceding
paragraphs, shall be subsidiarily responsible to the captain of the vessel to which the
seaman first
belonged, for that part of the indemnity, referred to in the third paragraph of this
article, which the
seaman may not be able to pay.
ARTICLE 636. If there is no fixed period for which a seaman has been contracted he
may not be
discharged until the end of the return voyage to the port where he enlisted.
ARTICLE 637. Neither may the captain discharge a seaman during the time of his
contract
except for just cause, the following being considered as such:
1. The perpetration of a crime which disturbs order on the vessel.
2. Repeated insubordination, want of discipline, or non-fulfillment of the service.
3. Repeated incapacity and negligence in the fulfillment of the service he should
render.
4. Habitual drunkenness.
5. Any occurrence which incapacitates the seaman to perform the work entrusted to
him, with the
exception of that provided in Article 644.
6. Desertion.
The captain may, however, before getting out on a voyage and without giving any
reason, refuse to
permit a seaman whom he may have engaged to go on board, and leave him on
land, in which case he
will be obliged to pay him his wages as if he had rendered services.
This indemnity shall be paid from the funds of the vessel if the captain should have
acted for reasons of
prudence and in the interest of the safety and good services of the farmer. Should
this not be the case, it
shall be paid by the captain personally. aisadc
After the voyage has begun, during the same, and until the conclusion thereof, the
captain may not
abandon any member of his crew on land or on sea, unless, by reason of some
crime, his imprisonment
and delivery to the competent authority in the first port touched should be proper, a
matter obligatory
for the captain.
ARTICLE 638. If, after the crew has been engaged, the voyage is revoked by the will
of the ship
agent or of the charterers before or after the vessel has put to sea, or if the vessel is
for the same reason
given a destination different from that fixed in the agreement with the crew, the latter
shall be
indemnified on account of the rescission of the contract, according to the cases
follows:
1. If the revocation of the voyage should be decided upon before the departure of the
vessel from
the port, each sailor engaged shall be given one month's salary, besides what may
be due him, in
accordance with his contract, for the services rendered to the vessel up to the date
of the revocation.
2. If the agreement should have been for a fixed amount for the whole voyage, that
which may be
due for said month and days shall be determined in proportion to the approximate
number of days the
voyage should have lasted, in the judgment of experts, in the manner established in
the law of Civil
Procedure; and if the proposed voyage should be of such short duration that it is
calculated at
approximately one month, the indemnity shall be fixed for fifteen days, discounting in
all cases the
sums advanced.
3. If the revocation should take place after the vessel has put to sea, the seamen
engaged for a
fixed amount for the voyage shall receive in full the salary which may have been
offered them as if the
voyage had terminated; and those engaged by the month shall receive the amount
corresponding to the
time they might have been on board and to the time they may require to arrive at the
port of destination,
the captain being obliged, furthermore, to pay the seamen in both cases, the
passage to the said port or
to the port of sailing of the vessel, as may be convenient for them.
4. If the ship agent or the charterers of the vessel should give it a destination
different from that
fixed in the agreement, and the members of the crew should not agree thereto, they
shall be given by
way of indemnity half the amount fixed in case No. 1, besides what may be owed
them for the part of
the monthly wages corresponding to the days which have elapsed from the date of
their agreements.
If they accept the change, and the voyage, on account of the greater distance or of
other reasons, should
give rise to an increase of wages, the latter shall be adjusted privately or through
amicable arbitrators in
case of disagreement. Even though the voyage should be shortened to a nearer
point, this shall not give
rise to a reduction in the wages agreed upon.
If the revocation or change of the voyage should come from the shippers or
charterers, the agent shall
have a right to demand of them the indemnity which may be justly due.
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. cdasia
ARTICLE 641. If, after a voyage has been begun, any of the first three causes
mentioned in the
foregoing article should occur, the sailors shall be paid at the port which the captain
may deem
advisable to make for the benefit of the vessel and cargo, according to the time they
may have served
thereon; but if the vessel is to continue its voyage, the captain and the crew may
mutually demand the
enforcement of the contract.
In case of the occurrence of the fourth cause, the crew shall continue to be paid half
wages, if the
agreement is by month; but if the detention should exceed three months, the contract
shall be rescinded
and the crew shall be paid what they should have earned according to the contract if
the voyage had
been concluded. And if the agreement should be for a fixed sum for the voyage, the
contract must be
complied within the terms agreed upon.
In the fifth case, the crew shall have no other right than to collect the wages earned;
but if the disability
of the vessel should have been caused by the negligence or lack of skill of the
captain, engineer, or
sailing mate, they shall indemnify the crew for the damages suffered, always without
prejudice to the
criminal liability which may be proper.
ARTICLE 642. If the crew have been engaged on shares, they shall not be entitled,
by reason of
the revocation, delay, or greater extension of the voyage, to anything but the
proportionate part of the
indemnity which way be paid into the common funds of the vessel by the persons
liable for said
occurrences.
ARTICLE 643. If the vessel and her cargo should be totally lost, by reason of capture
or wreck,
all rights shall be extinguished, both as regards the crew to demand any wages
whatsoever, and as
regards the ship agent to recover the advances made.
If a portion of the vessel or of the cargo, or of both, should be saved, the crew
engaged on wages,
including the captain, shall retain their rights on the salvage, so far as they go, on the
remainder of the
vessel as well as on the amount of the freightage of the cargo saved; but sailors who
are engaged on
shares shall not have any right whatsoever on the salvage of the hull, but only on the
portion of the
freightage saved. If they should have worked to recover the remainder of the
shipwrecked vessel they
shall be given from the amount of the salvage an award in proportion of the efforts
made and to the
risks, encountered in order to accomplish the salvage.
ARTICLE 644. A seaman who falls sick shall not lose his right to wages during the
voyage,
unless the sickness is the result of his own fault. At any rate, the costs of the
attendance and cure shall
be defrayed from the common funds, in the form of a loan.
If the sickness should come from an injury received in the service or defense of the
vessel, the seaman
shall be attended and cured at the expense of the common funds deducting, before
anything else, from
the proceeds of the freightage the cost of the attendance and cure.
ARTICLE 645. If a seaman should die during the voyage, his heirs will be given the
wages
earned and not received according to his contract and the cause of his death,
namely
If he died a natural death and was engaged on wages, that which may have been
earned up to the date
of his death shall be paid.
If the contract was for a fixed sum for the whole voyage, half the amount earned
shall be paid if the
seamen died on the voyage out, and the whole amount if he died on the return
voyage.
And if the contract was on shares and death occurred after the voyage was begun,
the heirs shall be
paid the entire portion due the seaman; but if the latter died before the departure of
the vessel from the
port, the heirs shall not be entitled to claim anything.
If death occurred in the defense of the vessel, the seaman shall be considered as
living, and his heirs
shall be paid, at the end of the voyage, the full amount of wages or the integral part
of the profits which
may be due him as to others of his class.
In the same manner, the seaman captured while defending the vessel shall be
considered present so as
to enjoy the same benefits as the rest; but should he have been captured on account
of carelessness or
other accident not related to the service, he shall only receive the wages due up to
the day of his
capture.
ARTICLE 646. The vessel with her engines, rigging, equipment, and freightage shall
he liable for
the wages earned by the crew engaged per month or for the trip, the liquidation and
payment to take
place between one voyage and the other.
After a new voyage has been undertaken, credits of such kind pertaining to the
preceding voyage shall
lose their right of preference.
ARTICLE 647. The officers and the crew of the vessel shall be free from all
obligations if they
deem it proper, in the following cases:
1. If, before beginning the voyage, the captain attempts to change it, or a naval war
with the power
to which the vessel was destined occurs.
2. If a disease should break out and be officially declared an epidemic in the port of
destination.
3. If the vessel should change owner or captain.
ARTICLE 648. By the complement of a vessel shall be understood all the persons on
board, from
the captain to the cabin boy, necessary for the management, maneuvers, and
service, and therefore, the
complement shall include the crew, the sailing mates, engineers, stokers and other
employees on board
not having specific designations; but it shall not include the passengers or the
persons whom the vessel
is transporting.
SECTION FOUR
SUPERCARGOES
ARTICLE 649. Supercargoes shall discharge on board the vessel the administrative
duties which
the ship agent or the shippers may have assigned to them; they shall keep an
account and record of their
transactions in a book which shall have the same conditions and requisites as
required for the
accounting book of the captain, and they shall respect the latter in his capacity as
chief of the vessel.
cdtai
The powers and responsibilities of the captain shall cease, when there is a
supercargo, with regard to
that part of the administration legitimately conferred upon the latter, but shall
continue in force for all
acts which are inseparable from his authority and office.
ARTICLE 650. All the provisions contained in the second section of Title III, Book II,
with
regard to capacity, manner of making contracts, and liabilities of factors, shall be
applicable to
supercargoes.
ARTICLE 651. Supercargoes may not, without special authorization or agreement,
make any
transaction for their own account during the voyage, with the exception of the
ventures which, in
accordance with the custom of the port of destination, they are permitted to do.
Neither shall they be permitted to invest in the return trip more than the profits from
the ventures,
unless there is an express authorization from the principals.
TITLE THREE
SPECIAL CONTRACTS OF MARITIME COMMERCE
SECTION ONE
CHARTER PARTIES
PART I
FORMS AND EFFECTS OF CHARTER PARTIES
ARTICLE 652. A charter party must be drawn in duplicate and signed by the
contracting parties,
and when either does not know how or is not able to do so, by two witnesses at his
request.
The charter party shall contain, besides the conditions freely stipulated, the following
circumstances:
1. The kind, name, and tonnage of the vessel.
2. Its flag and port of registry.
3. The name, surname, and domicile of the captain.
4. The name, surname, and domicile of the ship agent, if the latter should make the
charter party.
5. The name, surname, and domicile of the charterer; and if he states that he is
acting by
commission, that of the person for whose account he makes the contract.
6. The port of loading and unloading.
7. The capacity, number of tons or the weight or measurement which they
respectively bind
themselves to load and to transport, or whether the charter party is total.
8. The freightage to be paid, stating whether it is to be a fixed amount for the voyage
or so much
per month, or for the space to be occupied, or for the weight or measure of the
goods of which the
cargo consists, or in any other manner whatsoever agreed upon.
9. The amount of primage to be paid to the captain.
10. The days agreed upon for loading and unloading.
11. The lay days and extra lay days to be allowed and the demurrage to be paid for
each of them.
ARTICLE 653. If the cargo should be received without the charter party having been
signed, the
contract shall be understood as executed in accordance with what appears in the bill
of lading, the sole
evidence of title with regard to the cargo for determining the rights and obligations of
the ship agent,
of the captain, and of the charterer. cdt
ARTICLE 654. The charter parties executed with the intervention of a broker, who
certifies to
the authenticity of the signatures of the contracting parties because they were signed
in his presence,
shall be full evidence in court; and if they should be conflicting, that which accords
with one which the
broker must keep in his registry, if kept in accordance with law, shall govern.
The contracts shall also be admitted as evidence, even though a broker has not
taken part therein, if the
contracting parties acknowledge the signatures to be the same as their own.
If no broker has intervened in the charter party and the signatures are not
acknowledged, doubts shall
be decided by what is provided for in the bill of lading and in the absence thereof, by
the proofs
submitted by the parties.
ARTICLE 655. Charter parties executed by the captain in the absence of the ship
agent shall be
valid and effective, even though in executing them he should have acted in violation
of the orders and
instructions of the ship agent or shipowner; but the latter shall have a right of action
against the captain
for indemnification of damages.
ARTICLE 656. If in the charter party the time in which the loading and unloading are
to take
place is not stated, the usages of the port where these acts take place shall be
observed. After the
stipulated or the customary period has passed, and there is no express proviso in
the charter party fixing
the indemnity for the delay, the captain shall be entitled to demand demurrage for
the lay days and
extra lay days which may have elapsed in loading and unloading.
ARTICLE 657. If during the voyage the vessel should be rendered unseaworthy, the
captain shall
be obliged to charter at his expense another one in good condition to receive the
cargo and carry it to its
destination, for which purpose he shall be obliged to look for a vessel not only at the
port of arrival but
also in the neighborhood within distance of 150 kilometers.
If the captain, through indolence or malice, should not furnish a vessel to its
destination, the shippers,
after requiring the captain to charter a vessel within an inextendible period, may
charter one and
petition the judicial authority to summarily approve the charter party which they may
have made.
The same authority shall judicially ("por la via de appremio") compel the captain, to
carry out, for his
account and under his responsibility, the charter made by the shippers.
If the captain, notwithstanding his diligence, should not find a vessel for the charter,
he shall deposit
the cargo at the disposal of the shippers, to whom he shall communicate the facts on
the first
opportunity which presents itself, the freight being adjusted in such cases by the
distance covered by
the vessel, with no right to any indemnification whatsoever.
ARTICLE 658. The freightage shall accrue according to the conditions stipulated in
the contract,
and should they not be expressed, or should they be ambiguous, the following rules
shall be observed:
1. If the vessel has been chartered by months or by days, the freightage shall begin
to run from the
day the loading of the vessel is begun.
2. In charters made for a fixed period, the freightage shall begin to run from that very
day.
3. If the freightage is charged according to weight, the payment shall be made
according to gross
weight, including the containers, such as barrels or any other objects in which the
cargo is contained.
ARTICLE 659. The merchandise sold by the captain to pay for the necessary repairs
to the hull,
machinery or equipment, or for unavoidable and urgent needs, shall pay freightage.
cdt
The price of this merchandise shall be fixed according to the result of the voyage,
namely:
1. If the vessel should arrive safely at the port of destination, the captain shall pay
the price which
the sale of merchandise of the same kind brings at that port.
2. If the vessel should be lost, the captain shall pay the price realized from said
merchandise in the
sale.
The same rule shall be observed in the payment of the freightage, which shall be in
full if the vessel
arrives at her destination, and in proportion to the distance covered if she should be
lost before arrival.
ARTICLE 660. Merchandise jettisoned for the common safety shall not pay
freightage; but the
amount of the latter shall be considered as general average computing the same in
proportion to the
distance covered when they were jettisoned.
ARTICLE 661. Neither merchandise lost by reason of shipwreck or stranding nor
those seized by
the pirates or enemies, shall pay freightage.
If the freightage should have been paid in advance, it shall be returned, unless there
is an agreement to
the contrary.
ARTICLE 662. If the vessel or the merchandise should be redeemed, or the effects
of the
shipwreck be salvaged, the freightage corresponding to the distance covered by the
vessel transporting
the cargo shall be paid; and should the vessel, after being repaired, transport said
merchandise to the
port of destination, the full freightage shall be paid, without prejudice to what may be
due by reason of
the average.
ARTICLE 663. Merchandise which suffer deterioration or diminutions on account of
inherent
defects or bad quality and condition of the packing, or because of fortuitous event,
shall pay freightage
in full and as stipulated in the charter party.
ARTICLE 664. The natural increase in weight or size of the merchandise loaded on
the vessel
shall accrue to the benefit of the owner, and shall pay the proper freightage fixed in
the contract for the
same.
ARTICLE 665. The cargo shall be specially liable for the payment of the freightage,
expenses
and duties arising therefrom, which must be reimbursed by the shippers, as well as
for the part of the
general average which may correspond to it; but it shall not be legal for the captain
to delay unloading
on account of suspicion that this obligation may not be complied with.
Should there be reasons for distrust, the judge or court, at the instance of the
captain, may order the
deposit of the merchandise until he has been paid in full.
ARTICLE 666. The captain may request the sale of the cargo to the amount
necessary to pay the
freightage, expenses, and averages due him, reserving the right to demand the
balance due him therefor
if the proceeds of the sale should not suffice to cover his credit.
ARTICLE 667. The goods loaded shall be liable in the first place for the freight and
expenses
thereof during twenty days, to be counted from the date of their delivery or deposit.
During this period,
the sale of the same may be requested, even though there be other creditors and the
bankruptcy of the
shipper or consignee should occur.
This right may not he made use of, however, on the goods which, after being
delivered, were turned
over to a third person without malice on the part of the latter and for a valuable
consideration. cdasia
ARTICLE 668. If the consignee should not be found or should refuse to receive the
cargo, the
judge or court, at the instance of the captain, shall order its deposit and the sale of
what may be
necessary to pay the freightage and other expenses on the same.
The sale shall likewise be allowed when the goods deposited run the risk of
deteriorating, or by reason
of their condition or other circumstances the expenses of preservation and custody
should be
disproportionate.
PART 2
RIGHTS AND OBLIGATIONS OF SHIPOWNERS
ARTICLE 669. The shipowner or the captain shall observe in charter parties the
capacity of the
vessel or that expressly designated in its registry, a difference greater than 2 per
cent between that
stated and her true capacity not being permissible.
If the shipowner or the captain should contract to carry a greater amount of cargo
than the vessel can
carry in view of her tonnage, they shall indemnify the shippers whose contracts they
do not fulfill for
the losses they may have caused when by reason of their default, according to the
following cases, viz:
If the vessel has been chartered by one shipper only, and there should appear to be
an error or fraud in
her capacity, and the charterer should not wish to rescind the contract, when he has
a right to do so, the
freightage shall he reduced in proportion to the cargo which the vessel can not
receive, the person from
whom the vessel is chartered being furthermore obliged to indemnify the charterer
for the losses he
may have caused him.
If, on the contrary there should be several charter parties, and by reason of want of
space all the cargo
contracted for cannot be loaded, and none of the charterers desires to rescind the
contract, preference
shall be given to the person who has already loaded and arranged the freight in the
vessel, and the rest
shall take the places corresponding to them in the order of the dates of their
contracts.
Should there be no priority, the charterers may load, if they wish, in proportion to the
amounts of
weight or space for which each may have contracted, and the person from whom the
vessel was
chartered shall he obliged to indemnify them for losses and damages.
ARTICLE 670. If the person from whom the vessel is chartered, after receiving a part
of the
freight, should not find sufficient to make up at least three-fifths of the amount which
the vessel may
hold, at the price he may have fixed, he may substitute for the transportation another
vessel inspected
and declared suitable for the same voyage, the expenses of transfer and the
increase in the price of the
charter, should there be any, being for his account. Should he not be able to make
this change, he shall
undertake the voyage at the time agreed upon; and should no time have been fixed,
within fifteen days
from the time the loading began, unless otherwise stipulated.
If the owner of the part of the freight already loaded should procure some more at
the same price and
under similar or proportionate conditions to those accepted for the freight received,
the person from
whom the vessel is chartered or the captain can not refuse to accept the rest of the
cargo; and should he
do so, the shipper shall have a right to demand that the vessel put to sea with the
cargo which it may
have on board.
ARTICLE 671. After three-fifths of the vessel has been loaded, the person from
whom she is
chartered may not, without the consent of the charterers or shippers, substitute the
vessel designated in
the charter party by another one, under the penalty of making himself thereby liable
for all the losses
and damages occurring during the voyage to the cargo of those who did not consent
to the change.
ARTICLE 672. If the vessel has been chartered in whole, the captain may not,
without the
consent of the charterer, accept cargo from any other person; and should he do so,
said charterer may
oblige him to unload it and to indemnify him for the losses suffered thereby.
ARTICLE 673. The person from whom the vessel is chartered shall he liable for all
the losses
caused to the charterer by reason of the voluntary delay of the captain in putting to
sea, according to the
rules prescribed, provided he has been requested, notarially or judicially, to put to
sea at the proper
time.
ARTICLE 674. If the charterer should carry to the vessel more cargo than that
contracted for, the
excess may be admitted in accordance with the price stipulated in the contract, if it
can be well stowed
without injuring the other shippers; but if in order to load it, the vessel would be
thrown out of trim, the
captain must refuse it or unload it at the expense of its owner.
In the same manner, the captain may, before leaving the port, unload merchandise
clandestinely placed
on board, or transport them, if he can do so with the vessel in trim, demanding by
way of freightage the
highest price which may have been stipulated for said voyage.
ARTICLE 675. If the vessel has been chartered to receive the cargo in another port,
the captain
shall appear before the consignee designated in the charter party; and, should the
latter not deliver the
cargo to him, he shall inform the charterer and wait his instructions, the lay days
agreed upon or those
allowed by custom in the port beginning to run in the meantime, unless there is an
express, agreement
to the contrary.
Should the captain not receive an answer within the time necessary therefor, he shall
make efforts to
find freight; and should he not find any after the lay days and extra lay days have
elapsed, he shall
make a protest and return to the port where the charter was made.
The charterer shall pay the freightage in full, discounting that which may have been
earned on the
merchandise which may have been carried on the voyage out or on the return trip, if
carried for the
account of third persons.
The same shall be done if a vessel, having been chartered for the round trip, should
not be given any
cargo on its return.
ARTICLE 676. The captain shall lose the freightage and shall indemnify the
charterers if the
latter should prove, even against the certificate of inspection, if one has been made
at the port of
departure, that the vessel was not in a condition to navigate at the time of receiving
the cargo.
ARTICLE 677. The charter party shall subsist if a declaration of war or a blockade
should take
place during the voyage, the captain not having any instructions from the charterer.
In such case the
captain must proceed to the nearest safe and neutral port, requesting and awaiting
orders from the
shipper, and the expenses and salaries paid during the detention shall be paid as
general average.
If, by orders of the shipper, the cargo should be discharged at the port of arrival, the
freightage for the
voyage out shall be paid in full.
ARTICLE 678. If the time necessary, in the opinion of the judge or court, to receive
the orders of
the shipper should have elapse, without the captain having received any instructions,
the cargo shall be
deposited, and it shall be liable for the payment of the freightage and expenses on its
account during the
delay, which shall be paid from the proceeds of the part first sold.
PART 3
OBLIGATIONS OF CHARTERERS
ARTICLE 679. The charterer of an entire vessel may sub-charter the whole or part
thereof on
such terms as he may consider most convenient, the captain not being allowed to
refuse to receive on
board the freight delivered by the second charterers, provided that the conditions of
the first charter are
not change, and that the price agreed upon is paid in full to the person from whom
the vessel is
chartered, even though the full cargo is not embarked, with the limitation established
in the next article.
cdtai
ARTICLE 680. A charterer who does not complete the full cargo he bound himself to
ship shall
pay the freightage of the amount he fails to ship, if the captain does not take other
freight to complete
the load of the vessel, in which case the first charterer shall pay the difference,
should there be any.
ARTICLE 681. If the charterer should load goods different from those stated at the
time of
executing the charter party, without the knowledge of the person from whom the
vessel was chartered
or of the captain, and should thereby give rise to losses, by reason of confiscation,
embargo, detention,
or other causes, to the person from whom the vessel was chartered or to the
shippers, the person giving
rise thereto shall be liable with the value of his shipment and furthermore with his
property, for the full
indemnity to all those injured through his fault.
ARTICLE 682. If the merchandise should have been shipped for the purpose of illicit
commerce,
and were taken on board with the knowledge of the person from whom the vessel
was chartered or of
the captain, the latter, jointly with the owner of the same, shall be liable for all the
losses which may be
caused the other shippers; and even though it may have been stipulated, they can
not demand any
indemnity whatsoever from the charterer for the damaged caused to the vessel.
ARTICLE 683. In case of making a port to repair the hull, machinery, or equipment of
the vessel,
the shippers must await until the vessel is repaired, being permitted to unload it at
their own expense
should they deem it proper.
If, for the benefit of the cargo subject to deterioration, the shippers or the court, or
the consul, or the
competent authority in a foreign country, should order the merchandise to be
unloaded, the expenses of
unloading and reloading shall be for the account of the former.
ARTICLE 684. If the charterer, without the occurrence of any of the cases of force
majeure
mentioned in the foregoing article, should wish to unload his merchandise before
arriving at the port of
destination, he shall pay the full freightage, the expenses of the arrival made at his
request, and the
losses and damages caused the other shippers, should there be any.
ARTICLE 685. In charters for transportation of general freight, any of the shippers
may unload
the merchandise before the beginning of the voyage, paying one-half of the
freightage, the expense of
stowing and restowing the cargo, and any other damage which for his reason he
may cause the other
shippers.
ARTICLE 686. After the vessel has been unloaded and the cargo placed at the
disposal of the
consignee, the latter must immediately pay the captain the freightage due and the
other expenses for
which said cargo may be liable.
The primage must be paid in the same proportion and at the same time as the
freightage, all the changes
and modifications to which the latter should be subject also governing the former.
ARTICLE 687. The charterers and shippers may not abandon merchandise
damaged on account
of inherent defect or fortuitous event, for the payment of the freightage and other
expenses. aisadc
The abandonment shall be proper, however, if the cargo should consist of liquids
and they have leaked
out, nothing remaining in the containers but one-fourth part of their contents.
PART 4
TOTAL OR PARTIAL RESCISSION OF CHARTER PARTIES
ARTICLE 688. A charter party may be rescinded at the request of the charterer:
1. If before loading the vessel he should not agree with that stated in the certificate of
tonnage, or
if there should be an error in the statement of the flag under which she sails.
2. If the vessel should not be placed at the disposal of the charterer within the period
and in the
manner agreed upon.
3. If after the vessel has put to sea, she should return to the port of departure, on
account of risk
from pirates, enemies, or bad weather, and the shippers should agree to unload her.
In the second and third cases the person from whom the vessel was chartered shall
indemnify the
charterer for the voyage out.
4. If the charter should have been made by the months, the charterers shall pay the
full freightage
for one month, if the voyage is for a port in the same waters, and for two months, if
for a port in
different waters.
From one port to another of the Philippines and adjacent islands, the freightage for
one month only
shall be paid.
5. If the vessel should make a port during the voyage in order to make urgent
repairs, and the
charterers should prefer to dispose of the merchandise.
When the delay does not exceed thirty days, the shippers shall pay the full freightage
for the voyage
out.
Should the delay exceed thirty days, they shall only pay the freightage in proportion
to the distance
covered by the vessel.
ARTICLE 689. At the request of the person from whom the vessel is chartered the
charter party
may be rescinded:
1. If the charterer, at the termination of the extra lay days, does not place the cargo
alongside the
vessel.
In such case the charterer must pay half the freight stipulated, besides the
demurrage due for the lay
days and extra lay days.
2. If the person from whom the vessel was chartered should sell it before the
charterer has begun
to load it, and the purchaser should load it for his own account.
In such case the vendor shall indemnify the charterer for the losses he may suffer.
If the new owner of the vessel should not load it for his own account, the charter
party shall be
respected, and the vendor shall indemnify the purchaser if the former did not inform
him of the charter
pending at the time of making the sale.
ARTICLE 690. The charter party shall be rescinded and all actions arising therefrom
shall be
extinguished, if, before the vessel puts to sea from the port of departure, any of the
following cases
should occur:
1. A declaration of war or interdiction of commerce with the power to whose ports the
vessel was
to make its voyage.
2. A condition of blockade of the port of destination of said vessel, or the breaking
out of an
epidemic after the contract was executed.
3. The prohibition to receive at the said port the merchandise constituting the cargo
of the vessel.
4. An indefinite detention, by reason of an embargo of the vessel by order of the
government, or
for any other reason independent of the will of the ship agent.
5. The inability of the vessel to navigate, without fault of the captain or ship agent.
The unloading shall be made for the account of the charterer.
ARTICLE 691. If the vessel cannot put to sea on account of the closing of the port of
departure
or any other temporary cause, the charter shall remain in force, with neither one of
the contracting
parties having a right to claim damages.
The subsistence and wages of the crew shall be considered as general average.
During the interruption, the charterer may at the proper time and for his own account,
unload and load
the merchandise, paying demurrage if he delays the reloading after the cause for the
detention has
ceased.
ARTICLE 692. A charter party shall be partially rescinded, unless there is an
agreement to the
contrary, and the captain shall only be entitled to the freightage for the voyage out, if,
by reason of a
declaration of war, closing of ports, or interdiction of commercial relations during the
voyage, the
vessel should make the port designated for such a case in the instructions of the
charterer.
PART 5
PASSENGERS ON SEA VOYAGES
ARTICLE 693. If the passage price has not been agreed upon, the judge or court
shall summarily
fix it, after a declaration of experts.
ARTICLE 694. Should the passenger not arrive on board at the time fixed, or should
leave the
vessel without permission from the captain when the latter is ready to leave the port,
the captain may
continue the voyage and demand the full passage price.
ARTICLE 695. The right to passage, if issued to a specified person, may not be
transferred
without the consent of the captain or of the consignee.
ARTICLE 696. If before beginning the voyage the passenger should die, his heirs
shall only be
obliged to pay half of the fare agreed upon.
If the expenses of subsistence are included in the price stipulated, the judge or court,
after hearing
experts if he considers it necessary, shall fix the amount which has to be left for the
benefit of the
vessel.
Should another passenger be received in the place of the deceased, no payment
shall be made by said
heirs.
ARTICLE 697. If before the voyage is begun it is suspended through the exclusive
fault of the
captain or ship agent, the passengers shall have the right to a refund of their fares
and to recover losses
and damages; but if the suspension is due to fortuitous events, or to force majeure,
or to any other cause
independent of the captain or ship agent, the passengers shall only be entitled to the
return of the fare.
cd
ARTICLE 698. In case a voyage already begun should be interrupted, the
passengers shall be
obliged to pay the fare in proportion to the distance covered, without right to recover
for losses and
damages if the interruption is due to fortuitous event or to force majeure, but with a
right to indemnity
if the interruption should have been caused by the captain exclusively. If the
interruption should be
caused by the disability of the vessel, and a passenger should agree to await the
repairs, he may not be
required to pay any increased price of passage, but his living expenses during the
stay shall be for his
own account.
In case of delay in the departure of the vessel, the passengers have the right to
remain on board and to
be furnished with food for the account of the vessel unless the delay is due to
fortuitous events or to
force majeure. If the delay should exceed ten days, passengers requesting the same
shall be entitled to
the return of the fare; and if it is due exclusively to the fault of the captain or ship
agent, they may also
demand indemnity for losses and damages.
A vessel exclusively devoted to the transportation of passengers must take them
directly to the port or
ports of destination, no matter what the number of passengers may be, making all
the stops indicated in
its itinerary.
ARTICLE 699. If the contract is rescinded, before or after the commencement of the
voyage, the
captain shall have a right to claim payment of what he may have furnished the
passengers.
ARTICLE 700. In all matters pertaining to the preservation of order and discipline on
board the
vessel passengers shall be subject to the orders of the captain, without any
distinction whatsoever.
ARTICLE 701. The convenience or the interest of the passengers shall not obligate
or empowers
the captain to stand in shore or enter places which may take the vessel out of her
course, or to remain in
the ports he must or in under necessity of touching for a period longer than that
required by the needs
of navigation.
ARTICLE 702. In the absence of an agreement to the contrary, it shall be understood
that the
subsistence of the passengers during the voyage is included in the price of the
passage; but should it be
for the account of the latter, the captain shall be under obligation, in case of
necessity, to furnish the
supply of food necessary for their sustenance at a reasonable price.
ARTICLE 703. A passenger shall be considered a shipper insofar as the goods he
carries on
board are concerned, and the captain shall not be responsible for what the former
may keep under his
immediate and special custody, unless the damage arises from an act of the captain
or of the crew.
ARTICLE 704. The captain, in order to collect the passage-money and expenses of
sustenance,
may retain the goods belonging to the passenger, and in case of the sale of the
same he shall be given
preference over other creditors acting the same way as in the collection of
freightage.
ARTICLE 705. In case of the death of a passenger during the voyage, the captain
shall be
authorized, with regard to the body, to take the steps required by the circumstances,
and shall carefully
take care of the papers and goods which may be on board belonging to the
passenger, observing the
provisions of case No. 10 of Article 612 with regard to members of the crew.
PART 6
BILLS OF LADING
ARTICLE 706. The captain of the vessel and the shipper shall have the obligation of
drawing up
the bill of lading in which shall be stated:
1. The name, registry, and tonnage of the vessel.
2. The name of the captain and his domicile.
3. The port of loading and that of unloading.
4. The name of the shipper.
5. The name of the consignee, if the bill of lading is issued in the name of a specified
person.
6. The quantity, quality, number of packages and marks of the merchandise.
7. The freightage and the primage stipulated.
The bill of lading may be issued to bearer, to order, or in the name of a specified
person, and must be
signed within twenty-four hours after the cargo has been received on board, the
shipper being entitled
to demand the unloading at the expense of the captain should the latter not sign it,
and, in every case,
the losses and damages suffered thereby. cdasia
ARTICLE 707. Four true copies of the original bill of lading shall be made, and all of
them shall
be signed by the captain and the shipper. Of these, the shipper shall keep one and
send another to the
consignee; the captain shall take two, one for himself and another for the ship agent.
There may also be drawn up as many copies of the bill of lading as may be
considered necessary by the
person interested; but when they are issued to order or to bearer, they shall be
stated in all the copies,
be they the first four or the subsequent ones, the destination of each one, stating
whether it is for the
agent, for the captain, for the shipper, or for the consignee. If the copy sent to the
latter should have a
duplicate, this circumstance and the fact that it is not valid except in default of the
first one must be
stated therein.
ARTICLE 708. Bills of lading issued to bearer and sent to the consignee shall be
transferable by
actual delivery of the instrument; and those issued to order, by virtue of an
indorsement.
In either case, the person to whom the bill of lading is transferred shall acquire all the
rights and actions
of the transferor or indorser with regard to the merchandise mentioned in the same.
ARTICLE 709. A bill of lading drawn up in accordance with the provisions of this title
shall be
proof as between all those interested in the cargo and between the latter and the
insurers, proof to the
contrary being reserved for the latter.
ARTICLE 710. If the bills of lading do not agree, and no change or erasure can be
observed in
any of them, those possessed by the shipper or consignee signed by the captain
shall be proof against
the captain or ship agent in favor of the consignee or shipper; and those possessed
by the captain or
ship agent signed by the shipper shall be proof against the shipper or consignee in
favor of the captain
or ship agent.
ARTICLE 711. The legitimate holder of a bill of lading who fails to present it to the
captain of
the vessel before the unloading obliging the latter thereby to unload it and place it in
deposit, shall be
responsible for the expenses of warehousing and other expenses arising therefrom.
ARTICLE 712. The captain may not by himself change the destination of the
merchandise. In
admitting this change at the instance of the shipper, he must first take up the bill of
lading which he
may have issued, under pain of being liable for the cargo to the legitimate holder of
the same.
ARTICLE 713. If before the delivery of the cargo a new bill of lading should be
demanded of the
captain, on the allegation that the failure to present the previous ones is due to their
loss or to any other
just cause, he shall be obliged to issue it, provided that security for the value of the
cargo is given to his
satisfaction, but without changing the consignment, and stating therein the
circumstances prescribed in
the last paragraph of Article 707, under penalty, should he not so state, of being held
liable for said
cargo if improperly delivered through his fault.
ARTICLE 714. If before the vessel puts to sea the captain should die or should
cease to hold his
position through any cause, the shippers shall have the right to demand of the new
captain the
ratification of the first bills of lading, and the latter must do so, provided that all the
copies previously
issued be presented or returned to him, and it should appear from all examination of
the cargo that they
are correct.
The expenses arising from the examination of the cargo shall be defrayed by the
ship agent, without
prejudice to the right of action of the latter against the first captain if he ceased to be
such through his
own fault. Should said examination not be made, it shall be understood that the new
captain accepts the
cargo as it appears from the bills of lading issued.
ARTICLE 715. Bills of lading will give rise to a most summary action or to judicial,
compulsion
("accion sumarisima o de apremios"), according to the case, for the delivery of the
cargo and the
payment of the freightage and the expenses thereby incurred.
ARTICLE 716. If several persons should present bills of lading issued to bearer or to
order,
indorsed in their favor, demanding the same merchandise, the captain shall prefer, in
making delivery
the person who presents the copy first issued, except when the latter one was issued
on proof of the loss
of the first, and both are presented by different persons.
In such case, as well as when only second subsequent copies, issued without this
proof, are presented,
the captain shall apply to the judge or court, so that he may order the deposit of the
merchandise and
their delivery, through him, to the proper person.
ARTICLE 717. The delivery of the bill of lading shall effect the cancellation of all the
provisional receipts of prior date given by the captain or his subordinates for partial
deliveries of the
cargo which may have been made.
ARTICLE 718. After the cargo has been delivered the bill of lading which the captain
signed, or
at least the copy by reason of which the delivery is made, shall be returned to him,
with the receipt for
the merchandise mentioned therein.
The delay on the part of the consignee shall make him liable for the damages which
such delay may
cause the captain.
SECTION TWO
LOANS ON BOTTOMRY AND RESPONDENTIA
ARTICLE 719. A loan in which under any condition whatever, the repayment of the
sum loaned
and of the premium stipulated depends upon the safe arrival in port of the goods on
which it is made, or
of the price they may receive in case of accident, shall be considered a loan on
bottomry or
respondentia.
ARTICLE 720. Loans on bottomry or respondentia may be executed:
1. By means of a public instrument.
2. By means of a policy signed by the contracting parties and the broker taking part
therein. cdt
3. By means of a private instrument.
Under whichever of these forms the contract is executed, it shall be entered in the
certificate of the
registry of the vessel and shall be recorded in the registry of vessels, without which
requisites the
credits of this kind shall not have, with regard to other credits, the preference which,
according to their
nature, they should have, although the obligation shall be valid between the
contracting parties.
The contracts made during a voyage shall be governed by the provisions of Articles
583 and 611, and
shall be effective with regard to third persons from the date of their execution, if they
should be
recorded in the registry of vessels of the port of registry of the vessel before the
lapse of eight days
following its arrival. If said eight days should elapse without the record having been
made in the
corresponding registry, the contracts made during the voyage of a vessel shall
produce no effect with
regard to third persons, except from the day and date of their inscription.
In order that the policy of the contracts executed in accordance with No. 2 may have
binding force,
they must conform to the registry of the broker who took part therein. With respect to
those executed in
accordance with No. 3 the acknowledgment of the signature shall be required.
Contracts which are not reduced to writing shall not give rise to judicial action.
ARTICLE 721. In a contract on bottomry or respondentia the following must be
stated:
1. The kind, name, and registry of the vessel.
2. The name, surname, and domicile of the captain.
3. The names, surnames, and domiciles of the person giving and the person
receiving the loan.
4. The amount of the loan and the premium stipulated.
5. The time for repayment.
6. The goods pledged to secure repayment.
7. The voyage during which the risk is run.
ARTICLE 722. The contract may be made to order, in which case they shall be
transferable by
indorsement, and the indorsee shall acquire all the rights and shall incur all the risks
corresponding to
the indorser.
ARTICLE 723. Loans may be made in goods and in merchandise, fixing their value
in order to
determine the principal of the loan.
ARTICLE 724. The loans may be constituted jointly or separately:
1. On the hull of the vessel.
2. On the rigging.
3. On the equipment, provisions, and fuel.
4. On the engine, if the vessel is a steamer.
5. On the merchandise loaded.
If the loan in constituted on the hull of the vessel, the rigging, equipment and other
goods, provisions,
fuel, steam engines, and the freightage earned during the voyage on which the loan
is made shall also
be considered as included in the liability for the loan. cdtai
If the loan is made on the cargo, all that which constitutes the same shall be subject
to the repayment;
and if on a particular object of the vessel or of the cargo, only the object concretely
and specifically
mentioned shall be liable.
ARTICLE 725. No loans on bottomry may be made on the salaries of the crew or on
the profits
expected.
ARTICLE 726. If the lender should prove that he loaned an amount larger than the
value of the
object liable for the bottomry loan, on account of fraudulent measures employed by
the borrower, the
loan shall be valid only for the amount at which said object is appraised by experts.
The surplus principal shall be returned with legal interests for the entire time required
for repayment.
ARTICLE 727. If the full amount of the loan contracted in order to load the vessel
should not be
used for the cargo, the balance shall be returned before clearing.
The same procedure shall be observed with regard to the goods taken as loan, if
they were not loaded.
ARTICLE 728. The loan which the captain takes at the point of residence of the
owners of the
vessel shall only affect that part thereof which belongs to the captain, if the other
owners or their agents
should not have given their express authorization therefor or should not have taken
part in the
transaction.
If one or more of the owners should be requested to furnish the amount necessary to
repair or provision
the vessel, and they should not do so within twenty-four hours, the interest which the
parties in default
may have in the vessel shall be liable for the loan in the proper proportion.
Outside of the residence of the owners the captain may contract loans in accordance
with the provisions
of Articles 583 and 611.
ARTICLE 729. Should the goods on which money is taken not be subjected to risk,
the contract
shall be considered a simple loan, with the obligation on the part of the borrower to
return the principal
and interest at the legal rate, if that agreed upon should not be lower.
ARTICLE 730. Loans made during the voyage shall have preference over those
made before the
clearing of the vessel, and they shall be graduated in the inverse order of their dates.
The loans for the last voyage shall have preference over prior ones.
Should several loans have been made at the same port of arrival under stress and
for the same purpose,
all of them shall be paid pro rata.
ARTICLE 731. The actions pertaining to the lender shall be extinguished by the
absolute loss of
the goods on which the loan was made, if it arose from an accident of the sea at the
time and during the
voyage designated in the contract, and it is proven that the cargo was on board; but
this shall not take
place if the loss was caused by the inherent defect of the thing, or through the fault
or malice, of the
borrower, or barratry on the part of the captain, or if it was caused by damages
suffered by the vessel as
a consequence of being engaged in contraband, or if it arose from having loaded the
merchandise on a
vessel different from that designated in the contract, unless this change should have
been made by
reason of force majeure.
Proof of the loss as well as of the existence in the vessel of the goods declared to
the lender as the
object of the loan is incumbent upon him who received the loan.
ARTICLE 732. Lenders on bottomry or respondentia shall suffer, in proportion to
their
respective interest, the general average which may take place in the goods on which
the loan is made.
In particular averages, in the absence of an express agreement between the
contracting parties, the
lender on bottomry or respondentia shall also contribute in proportion to his
respective interest, should
it not belong to the kind of risks excepted in the foregoing article.
ARTICLE 733. Should the period during which the lender shall run the risk not have
been stated
in the contract, it shall last, with regard to the vessel, engines, rigging, and
equipment, from the
moment said vessel puts to sea until she drops anchor in the port of destination; and
with regard to the
merchandise, from the time they are loaded at the shore or wharf of the port of
shipment until they are
unloaded in the port of consignment. aisadc
ARTICLE 734. In case of shipwreck, the amount liable for the payment of the loan
shall be
reduced to the proceeds of the goods saved, after deducting the costs of the
salvage.
If the loan should be on the vessel or any of its parts, the freightage earned during
the voyage for which
said loan was contracted shall also be liable for its payment, as far as it may reach.
ARTICLE 735. If the same vessel or cargo should be the object of a loan on
bottomry or respondentia
and marine insurance, the value of what may be saved in case of shipwreck shall be
divided between
the lender and the insurer, in proportion to the legitimate interest of each one, taking
into consideration,
for this purpose only, the principal with respect to the loan, and without prejudice to
the right of
preference of other creditors in accordance with Article 580.
ARTICLE 736. If there should be delay in repayment of the principal and premiums
of the loan,
only the former shall bear of legal interest.