CHAPTER I
GENERAL CONSIDERATIONS
Contract of Transportation
• When a person obligates himself to transport persons or
property from one place to another for a consideration
• May be carriage of passengers or carriage of goods
• The person who obligates himself to transport ay be a
common carrier or a private carrier
CARRIAGE OF PASSENGERS
Parties: (1) common carrier and (2) passengers
Passenger
• One who travels in a public conveyance by virtue of contract,
express or implied with the carrier subject to payment of fare
or an equivalent thereof
• One still considered passenger even if he is being carried
gratuitously or under a reduced fare
CARRIAGE OF GOODS
Parties: (1) shipper and (2) carrier
Consignee
• To whom the goods are delivered
• May be the shipper himself; however, a consignee may be a
third party to the contract –– bound by terms and
conditions of the bill of lading where it was established that
he accepted the same and trying to enforce the
agreement
TYPES OF CONTRACTS OF CARRIAGE OF PASSENGERS
1. Contract to Carry –– agreement to carry the passenger at
some future date; this is consensual and is therefore
perfected by mere consent
2. Contract of carriage or common carriage –– a real
contract for not until the facilities of the carrier are
actually used can be said to have already assumed the
obligation of the carrier
CONTRACTS OF CARRIAGE OF GOODS
1. Contract to Carry –– whereby the carrier agrees to accept
and transport goods at some future date
2. Contract of carriage –– when goods are unconditionally
placed in the possession and control of the carrier and
upon their receipt by the carrier for transportation that
this contract is perfected
Note:
• The test as to whether the relation of shipper and carrier had
been established is, had the control and possession of goods
have been completely surrendered by the shipper, then it can
be said with certainty that the relation of the shipper and the
carrier has been established.
• The liability of the carrier as common carrier begins with the
actual delivery of goods for transportation and not merely with
the formal execution of a receipt or bill of lading; the issuance
of a bill of lading is not necessary to complete delivery and
acceptance
• The presence of a ticket or a bill of lading or any written
contract is not necessary for the perfection of a contract of
carriage
Aircraft
1. Contract to Carry –– perfected even when no tickets have
been issued to said passengers so long as there was
already a meeting of the minds with respect to the
subject matter and the consideration
2. Contract of carriage –– perfected if it can be established
that the passenger had checked in at the departure
area, passed thru customs, boarded shuttle bus,
proceeded to the ramp, etc.
Buses, jeepneys and street cars
• Once a (PUJ) stops, it is in effect making a continuing offer to
riders ––– it is then the duty of drivers to stop their conveyances
for a reasonable length of time in order to afford passengers
an opportunity to board and enter and are liable for injuries
suffered by boarding passengers resulting from sudden starting
up of the carrier
Trains
• One who want to board must purchase a ticket and must
present himself at the proper place and in a proper manner
for transportation; must as well have a bona fide intention to
use the facilities of the carrier, and possess sufficient fare
COMMON CARRIER
ARTICLE 1732. Common carriers are persons,
corporations, firms or associations engaged in the business of
carrying or transporting passengers or goods or both, by land,
water, or air, for compensation, offering their services to the
public.
• One that holds itself out as ready to engage in the
transportation of goods for hire as a public employment
and not as a casual operation
Tests:
1. Must be engaged in the business of carrying goods for
others as a public employment and must hold himself
out as ready to engage in the transportation of goods
for persons generally as business and not as a casual
operation
2. Must undertake to carry goods of the kind to which his
business is confined
3. Must undertake to carry by the method by which his
business is conducted and over his established roads
4. Must be for hire
Accordingly, 2nd and 3rd elements must not be part;
one is accordingly a common carrier provided has space for all
who opt to avail themselves of its transportation for a fee.
The true test for a common carrier is not the quantity or
extent of business actually transacted, the the number and
character of conveyances used in the activity but whether the
undertaking is a part of activity engaged in by the carrier that
he has held out to the general public as his business or
occupation.
Characteristics:
1. Art 1732 makes no distinction between one whose principal
business activity is the carrying of persons or goods or
both, and one who does such carrying only as an
ancillary activity or sideline
2. Art 1732 also carefully avoids making any distinction
between a person or enterprise offering transportation
service on a regular basis and one offering on an
occasional , unscheduled basis
3. Art 1732 does not distinguish between a carrier offering its
services to the general public or solicits business only
form a narrow segment of general public
4. One is a common carrier and has the obligations of the
common carrier under the CC even if he did not secure
a CPC
5. The CC makes no distinction as to the means of transporting
as long as it is by land, water or air
6. CC does not provide that transportation should be a motor
vehicle
7. One may be a common carrier even if he has no fixed and
publicly known route, maintains no terminals and issues
no tickets
8. One need not to be engaged in the business of public
transportation for the provisions o CC on common
carriers to apply to them
9. The carrier can also be a common carrier even if the
operator does not own the vehicle or vessel that he
operates
Not Common Carrier by Law –– Under Sec 7 of RA 10668, foreign Registered Owner Rule
vessels engaging in carriage conducted in accordance with the • Person who is the registered owner of a vehicle is liable for any
said law shall not be considered common carriers under the CC; damage caused by the negligent operation of the vehicle
does not offering public service therefore not falling under RA although the same was already sold or conveyed to another
9295 person at the time of the accident.
• Liable to the injured party subject to his right of recourse
CHARTER PARTY –– contract by which an entire ship or some part against the transferee or the buyer.
thereof is let by the owner to an other person for a specified time
or use Rationale: Identify the owner so that responsibility therefore can
1. Bareboat or demise charter –– where the charterer mans be fixed on a definite individual.
the vessel with his own people and in effect, the owner • Registered owner not liable if the vehicle was taken
of the voyage or service stipulated; transform common from his garage without his knowledge and consent
carrier into a private one. • Rule applies even if the registered owner leased the
2. Contract of affreightment –– like a voyage charter (single vehicle to another who is the actual operator.
voyage) or time charter (fixed period), does not Registered owner is directly liable; to be free from
transform into a private carrier; use of shipping space on liability, lessor-owner must register the lease contract
vessels leased by the owner as part or whole with the LTO to bind 3rd parties.
NB: However that even if whole part of vessel is chartered, if
those who man it are the owner’s crew, still remains to be a Right of Recourse: passenger > registered owner > transferee
common carrier. (Element of control)
Kabit System
Common Carrier Private Carrier • Arrangement whereby a person who has been granted a
(a) undertaking is part of a general (a) undertaking is a single certificate of public convenience allows other persons to
business or occupation transaction even if for a fee operate their motor vehicles under his license for a fee or
(b) must observe extraordinary (b) must observe ordinary percentage; not penalized by law but is contrary to public
diligence diligence only –– diligence of a policy
(c) presumption of negligence is good father of a family • Prohibition of kabit system applies also to aircrafts and vessel.
presumed (c) negligence not presumed
(d) cannot stipulate that it is (d) may validly enter into such Pari Delicto Rule –– parties to the kabit system cannot invoke the
exempt from liability stipulation same as against each other either to enforce their illegal
agreement or to invoke the same to escape liability. No action
Towage Arrastre Stevedoring Travel Agency arises from an illegal contract and neither parties can seek relief
from the courts
one vessel is hauling of handling of contract of
hired to bring cargo, the cargo in service;
Boundary System –– carrier cannot escape liability by claiming
another vessel handling of the holds of service of
that the driver is a lessee; cannot exempt himself on the ground
to another cargo on the the vessel or arranging and
that he is a lessor.
place. service wharf or between the facilitating the
rendered to a between the ships’ tackle booking,
CHAPTER II
vessel by establishment and the holds ticketing and
OBLIGATIONS OF THE PARTIES
towing for the of the of the vessel. accommodati
mre purpose consignee or provides labor on in a
Obligations of the Carrier:
of expediting shipper and in loading and package tour;
1. Accept passengers and goods without discrimination
her voyage the ship’s stowing of not a contract
2. Seasonably deliver the goods and bring passengers to their
without tackle. cargoes for its of carriage;
destinations
reference to responsibility clients; ordinary
3. Deliver the passengers or goods to the destination
any lasts until the ordinary diligence
4. Deliver the goods to the proper person
circumstances delivery of the diligence.
5. Exercise extraordinary diligence in the performance of its
of danger; cargo to the
duties
ordinary consignee;
diligence has nothing to
Duty to accept passengers and goods without discrimination
do with trade
• According to the rulings of the SC, present laws disallow
and
discrimination, forbid failures or refusals to receive persons or
navigation;
property for carriage which have the effect of giving an
services not
unreasonable or unnecessary preference or advantage to
maritime; but
any person
extraordinary
diligence is
Valid Grounds for Non-acceptance:
required
A. Goods sought to be transported are dangerous objects or
substances including dynamites and other explosives
• There are instances where the carrier may be
Types of Cargo Operation specially designed to carry dangerous chemicals
Line Service Tramp Service that are necessary for certain manufacturing
common carrier publicly offers no regular or fixed routes and businesses and may secure appropriate
services without discrimination to schedules, hired on contractual authorization for such.
any user, has regular ports, fixed basis, chartered by any one or few B. Unfit for transportation (Art. 356-357)
sailing schedules, and published shippers under mutually agreed • These goods may be by nature be unfit for
freight rates and attendant terms, matter of special transportation or are unfit because of improper
charges; common carrier arrangement between shipowner packaging or defect in containers
and shipper; common carrier C. Would result in overloading
depending on circumstances D. Considered contrabands or illegal goods
E. Injurious to health
F. Goods will be exposed to untoward danger like flood,
capture by enemies, etc
G. Goods like livestock will be exposed to diseases
H. Strike
I. Failure to tender goods on time
Duty to Make Timely Delivery
Agreement as to Time
Goods must be delivered within the stipulated time;
when expressed in a contract, one is bound and held liable for
any delay, no matter what cause it may have arisen from
What time must be followed?
1. What was stipulated
2. If there is no fixed period: in the first shipment of the
same or similar goods which he may make to
the point of delivery (Art 358, Code of
Commerce)
Reasonable Time
When a common carrier undertakes to convey goods,
the law implies a contract that they shall be delivered at
destination within a reasonable time, in the absence of any
agreement as to the time of delivery
1. Expected date of arrival reflected in the bill of lading may
be considered
2. May also depend upon nature of goods
Consequences of Delay
Excusable delay do not generally terminate the
contract of carriage and when it is removed, the master must
proceed with the voyage. During the detention delay, the vessel
continues to be liable as a common carrier and remains duty
bound to exercise extraordinary diligence. If delay is legally
inexcusable, the ff consequences results:
A. Carrier is still liable even if natural disaster caused the
damage
B. The stipulation limiting the liability of the carrier is inoperative
C. Carrier is liable for the damages caused by the delay
D. Consignee may exercise his right to abandon under Art 371
of the Code of Commerce
Right to Abandon
The consignee may leave the goods transported in the
hands of the carrier informing him in writing before the arrival of
the same at the point of destination. The carrier shall then be
liable for the total amount of goods.
The foregoing provision confers upon the consignee an
exceptional but limited right to abandon the goods transported
during the period intervening between the moment when the
fault of the carrier produces a delay which is the generative
cause of action until the moment just before the arrival of the
goods at the place of the delivery by communicating such
abandonment to the carrier in writing and when these
conditions do not concur, the refusal to accept cannot be
effective.
NB: It will be remembered that in overland transportation, an
unreasonable delay in the delivery of goods is sufficient ground
for the abandonment of goods. By analogy, this can also apply
to maritime transportation.
Place of Delivery
Delivered to the consignee in the place agreed upon
by the parties. If the place or warehouse is designated in the bill
of lading, the goods must be delivered in such place even if it is
not the usual place of delivery in the place of destination.
To whom delivered
To the consignee or any other person to whom the bill
of lading was validly transferred or negotiated; delivery must
generally be made to the owner or consignee or someone
lawfully authorized by him to receive the goods for his account.
Delay to Transport Passengers
• The carrier must commence its trip within a reasonable time –
– duty bound to transport passengers with reasonable
dispatch
• Also liable for any loss or damage, including any pecuniary loss
or loss of profit which the passenger may have suffered by
reason of delay
Duty to Exercise Extraordinary Diligence
Compliance must be with the element of integrity that
the goods should be delivered in the same condition that they
were received and to transport passengers without
encountering any harm or loss –– failure to exercise such will
result in the breach of obligation of the carrier thru negligence.
This high standard of care is imperatively demanded by
the preciousness of human life and by the consideration that
every person must in every way be safeguarded against all
injury.
Meaning of Extraordinary Diligence
• A man must use common sense, and exercise due reflection
in all his acts; it is his duty to be cautious, careful and prudent,
if not from instinct, then through fear of recurring punishment.
He is responsible for such results as anyone might foresee and
for acts which no one would have performed except through
culpable abandon. Otherwise, his own person, rights and
property, and those of his fellow beings, would ever be
exposed to all manner of danger and injury.
• It requires common carriers to render service with the greatest
skill and foresight and to use all the reasonable means to
ascertain the nature and characteristics of goods tendered for
shipment, and to exercise due care in the handling and
stowage including such methods as their nature requires,
Non-Delegable Duty
The duty of seaworthiness, the duty of care of the
cargo is non-delegable, and the carrier is accordingly
responsible for the acts of the master, the crew, the stevedore,
and his other agents. It has also been held that it is ordinarily the
duty of the master of a vessel to unload the cargo and place it
in readiness for delivery to the consignee, and there is an implied
obligation that this shall be accomplished with sound machinery,
competent hands, and in such manner that no unnecessary
injury shall be done thereto. And the fact that a consignee is
required to furnish persons to assist in unloading a shipment may
not relieve the carrier of its duty as to such unloading.
Presumption of Negligence
In case of injuries or damages, common carrier is
presumed to be at fault or have acted negligently unless he
observed extraordinary diligence in the vigilance thereof. The
court need not make an express findig of the fault of the carrier,
as long as it is shown that: (1) there exist a contract between the
passenger or shipper and common carrier, (2) that the loss,
deterioration, injury or death took place during the existence of
the contract. The presumption is operative even if both parties
cannot establish the cause of damage or injury
When goods are deemed delivered
The goods are deemed delivered to the carrier when
the goods are ready for and have been placed in the exclusive
possession, custody and control of the carrier for the purpose of
their immediate transportation and the carrier has accepted
them. When the carrier has thus accepted such delivery, the
liability of then carrier commences eo instanti.
Duty to Third Persons
Extraordinary diligence is primarily owed to passengers
and the goods being transported however it was ruled that the
duty even extends to the members of the crew or complement
operating it. TICKET, NO BOARDING” policy.

Effect of Stipulation on:
Goods Passengers
Parties cannot stipulate that the
There can be no stipulation lessening
carrier will not exercise ANY utmost diligence
diligence in the custody of goods,
neither can it be stipulated that
the goods are at the shipper’s risk.
HOWEVER, the law allows a
stipulation whereby the carrier will
exercise a degree of diligence
that is less than extraordinary with
respect to goods
Passenger’s Baggage
Passenger –– include whatever articles a passenger usually takes
with him for his own personal use, comfort, and convenience
according to the habits or wants of the particular class to which
he belongs either with reference to his immediate necessities or
for the purpose of his journey.
CHAPTER III
OBLIGATIONS OF THE PASSENGER AND SHIPPER
In a contract of Carriage, both the carrier and the
passenger or shipper, as the case may be, has prestations to
perform.
1. Duty to Exercise Due Diligence
A. The shipper is bound to pay the consideration in the
form of freight or fare.
B. The shipper and passenger are also bound to exercise
due diligence in avoiding damage or injury.
Negligence of Shipper or Passenger
The shipper is obliged to exercise due diligence in
avoiding damage to the goods that are being shipped or injury
to his person.
However the carrier cannot impute the negligence of its own
employee to the person or entity that hired the carrier provided
the passenger exercises no other control over the conduct of the
driver. (Sps. Fabre v. CA)
2. Duty to Disclose
A common carrier is entitled to fair representation of
the nature and value of the goods to be carried, with the
concomitant right to rely thereon, and a carrier has no
obligation to inquire into the correctness or sufficiency of such
information.
Damage caused by Cargoes
The shipper may be held liable for any damage that
may have been caused solely by the dangerous nature of the
cargoes or the defect of the packaging of the cargoes.
3. Payment of Freight
Common carriers are subject to heavy regulation with
respect to rates that they are charging to the public.
When private property is used for a public purpose and is
affected with public interest, it ceases to be juris private only and
becomes subject to regulation.
The fixing of just and reasonable rates involves a balancing of
the investor and the consumer interests.
Time to Pay the Freight
In the absence of any agreement, the consignee who
is supposed to pay must do so within 24 hours from the time of
delivery (Article 374)
(a) By Sea – the tickets are purchased in advance from ticket
outlets or booking offices. The carrier is bound to observe “NO
i. Unreasonable delay (a period of time that lapsed without just
cause and is solely attributable to the carrier which has
prejudiced the transportation of
passengers and/or cargoes (DEPARTURE/ARRIVAL) – ticket
refundable
ii. A passenger who no longer wants to use the carrier or has
actually failed to board the vessel can refund or revalidate the
ticket subject to assessment of surcharges.
Revalidation –– accreditation of the ticket that is not used and
intended to be used for another voyage.
(b) Carrier’s Lien – failure of consigner/consignee to pay the
consideration grants the carrier the right to use the goods to
answer for the cost of transportation and other fees. The right
may only be exercised within 30 days. Thereafter carrier shall
have no action than that corresponding to him as an ordinary
creditor.
4. Timely Loading and Unloading
The shipper must make sure that the goods are delivered on the
DATE, TIME, and PLACE agreed upon.
Consignee must likewise timely obtain delivery from carrier.
A. Carrier must give notice of arrival
B. Consignee must present BoL to the captain
Note: failure to do so, consignee is held responsible for
warehousing and other expenses.
Demurrage – claim for damages for failure to accept delivery.
Every improper detention of a vessel may be considered a
demurrage. Notice of arrival is often condition precedent to the
right to collect demurrage charges.
Lay days – period within which to load and unload the cargoes
as agreed by the parties.
5. Permits
Clearance from government agency for the carriage
of certain cargoes (ex. Animals, vehicles, hazardous substances,
etc.)
6. Shipper’s Load and Count
A shipper under this arrangement is not inspected or
inventoried by the carrier whose duty is only to transport and
deliver the containers in the same condition as when the carrier
received and accepted the containers for transport.
7. Duties of Passenger
The passenger must pay the proper fare for the transportation.
1. The passenger must present himself on the proper place.
2. Must present himself at the proper time.
3. Passenger is obligated not to bring such luggage that is in
excess of the weight and size prescribed by regulations
or contract.
4. Passenger is also prohibited from transporting prohibited
materials or goods, including animals.
Travel Documents
Passenger must secure appropriate travel documents.
A. Negligence if the passenger did not even check the date
of departure.
B. Airline may be held liable if the loss of documents was to the
negligence of its employee. (PAL vs. CA)
Air Transportation of Passengers
Civil Aviation Regulations provide for the following
unacceptable conducts:
1. No person on board may interfere with a crew member in
the performance of his or her duties.
2. Each passenger shall fasten his or her seat belt and keep it
 fastened while the seat belt sign is lighted.
3. No person on board an aircraft shall recklessly or negligently
act or omit to act in such a manner as to endanger the
aircraft or persons and property therein.
4. No person may secrete himself or herself nor secret a cargo
on board an aircraft
5. No person may smoke while the non-smoking sigh is lighted.
6. No person may tamper with, disable or destroy any smoke
detector installed in any airplane lavatory.
DEFENSES OF COMMON CARRIERS
1. Flood, storm, earthquake, lightning or other natural
disaster or calamity
2. Act of the public enemy in war, whether international or
civil
3. Acts or omission of the shipper or owner of the goods
4. The character of goods or defects in the packing or in the
containers
5. Order or act of competent public authority
6. Exercise of extraordinary diligence
Fortuitous event –– must be proximate and only cause to be valid
defense; must still exercise due diligence to minimize damage or
loss to be exonerated from liability for the same
Requisites:
¶a) Must be impossible to foresee the event or if foreseen,
must be impossible to avoid
¶b) The cause must be independent of human will
¶c) The occurrence must be such as to render it impossible for
the debtor to fulfill his obligation in a normal manner
¶d) The obligor must be free from any participation or
aggravation of the injury resulting to the creditor
 Fire not a natural calamity but yes, if caused by lightning
 Hijacking does not fall under categories of the exempting
causes; carrier presumed to be at fault unless there is proof
of extraordinary diligence
 Mechanical defects ≠ fortuitous event
 Tire blowouts ≠ fortuitous event
 Hijacking cannot exculpate the carrier from liability if it is
shown that employees were not overwhelmed and that
there is no showing of irresistible force. HOWEVER, can be
considered beyond control if for example hijacking was
made by 3 armed men = unforeseeable.
Public Enemy –– presupposes state of war and refers to
government of a foreign nation at war with country to which the
carrier belongs though not necessarily with that to which the
owner of goods owes allegiance
 Thieves, rioters and insurrectionists not included; merely
private depredators
 Rebels in insurrection are generally not embraced in the
definition of public enemy. HOWEVER, if the rebels hold a
portion of territory, have declared independence, cast off
allegiance and has organized armed hostility against
government and authority of latter is overthrown = may
take on dignity of a civil war and so matured and
magnified, parties are belligerents; entitled to belligerent
rights
 PIRATES (enemies of civilized nations) = excuses carrier
Improper Packing
Carriage of goods by Sea Act provides that carrier shall not be
liable for:
1. Wastage in bulk or weight or any damages arising from
the inherent defect, quality or vice of goods
2. Insufficiency of packing
3. Insufficiency or inadequacy of marks
4. Latent defects no discoverable by due diligence
NB: Note, Article 1742.
Thus, if carrier accepted goods knowing of improper packing or
even if carrier does not know but the defect was nonetheless
apparent upon ordinary observation NOT relieved from liability.
Acts or Omission of Shipper
1. Failure to disclose nature of goods
2. Improper marking or direction as to destination
3. Improper loading when he assumes such responsibility
 When merely contributory, partial defense
Order of Public Authority –– If thru order of public authority goods
were seized/destroyed, carrier not responsible PROVIDED said
public authority had power to issue order
NB: Mayor not considered public authority with power to issue
such order
DEFENSES IN CARRIAGE OF PASSENGERS
 Primary defense: exercise of ED (even in FE, must be proven)
 Re: Employees
 Carrier liable for acts of employees: can’t claim
exercise of due diligence in supervision and selection
(unlike in quasi-delicts)
 Re: Other passengers and third persons
 With respect to acts of strangers and other passengers
resulting in injury to a passenger: also subject to such
defense to prevent or stop act or omission
 Negligence of carrier need not be the sole cause of
injury or damage to passenger or goods: still liable
even if contractual breach concurs with negligent act
of another person
 Relate to cases of: Maranan and de Gillaco
PASSENGER’S BAGGAGES
 Inquiry may be made as to the nature of passenger’s
baggage but beyond this, constitutional boundaries
are already in danger of being transgressed
 General Rule: Carrier may only inquire on nature of
baggage but not search or inspect its contents
 Exception: Airline companies are required to inspect
every cargo
Kinds of Baggage:
1. Checked-in –– delivered to carrier; “goods”; 1733, 1734
and 1736; ED
2. Hand-carried –– in custody of passenger; “deposit”;
1998, 2000-2003; Ordinary Diligence
EXTRAORDINARY DILIGENCE
Rationale:
 A common carrier is bound to carry passengers safely as
far as human care and foresight can provide, using
utmost diligence of very cautious persons with due regard
for all circumstances
 Calculated to protect passengers from the tragic mishaps
that frequently occur in connection with rapid modern
transportation
A. EXTRAORDINARY DILIGENCE IN CARRIAGE BY SEA
Seaworthiness –– ED requires that ship is seaworthy; such is
impliedly warranted;
Must have degree of fitness which an owner exercising ED would
require his vessel to have at the commencement of voyage.
Includes:
(a) Fitness to withstand rigors of voyage
(b) Fitness to store the cargoes and accommodate
passengers to be transported
(c) Adequately equipped and properly manned
 Carrier carries burden of proving seaworthiness: certificates
≠ sufficient to overcome presumption of negligence
 General Test: WON ship and its appurtenances are
reasonably fit to perform service undertaken (e.g. dry-
docked and inspected by PCG)
 Carrier shall be bound before and at the beginning of
voyage to exercise due diligence to:
a) Make ship sea worthy
b) Properly man, equip and supply ship
c) Make all parts of the ship in which goods are
carried, fit and safe for their reception, carriage
and preservation
 Ship must be cargo-worthy –– efficiently strong and
equipped to carry the particular kind of cargo and safe to
proceed voyage

Overloading –– includes duty to take cargo and passengers

within carrying capacity of the vessel
Proper Storage –– ship may itself be suitable for cargo but it is not
enough because cargo must also be properly stored
NB: Must generally not placed on deck = raises presumption of
unseaworthiness unless proved that can’t interfere with proper
management

Negligence of Captain and Crew

Failure on part of carrier to provide competent captain
and crew must be distinguished from negligence of said persons,
because latter is covered by LIMITED LIABILITY RULE –– if can be
traced that they are really incompetent, LLR cannot be applied:
ship owner deemed negligent.

Deviation –– if there is agreement as to the road to be made,

carrier may not change route unless there be force majeure. Or
else, liable for all losses. On account of FM: reimbursed upon
formal proof –– increase in transportation charges
Transshipment –– act of taking cargo out of one ship to another;
if without legal excuse = violation of contract therefore subject
to liability

B. EXTRAORDINARY DILIGENCE IN CARRIAGE BY LAND

 Required to make sure that vehicles are in good
order/condition
 Duty bound to make sure that parts purchased are
not defective
 Failure to comply with basic traffic rules ≠ extraordinary
diligence
 NCC provides for presumption of negligence in case
accident occurs while operator is violating traffic rules
 No unbending duty to inspect each and every baggage
only on certain circumstances (Relate to case of Nocum)
C. EXTRAORDINARY DILIGENCE IN CARRIAGE BY AIR
Airworthiness –– components and accessories ae of proper
design and construction and are safe for navigation purposes;
such design and construction being consistent with accepted
engineering practice
 Flight cancelled due to FE ≠ duty ended –– still obligated to
look after the convenience and comfort of passenger
 Has duty to make inquiry as o general nature of articles
shipped and of their value before consents to carry them;
failure to do so cannot defeat shipper’s right to recovery of
full value of package if lost