transpo codals 2

7/30/2019 Transpo Codals 2

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MEMORANDUM OF AGREEMENT - PCG ANDPHILIPPINE PORTS AUTHORITY

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement, entered into by andbetween:

The PHILIPPINE PORTS AUTHORITY, a governmentagency created by virtue of presidential Degree No.857, as amended, with principal office at PPA Building,Bonifacio Drive, South Harbor, Port Area, Manila hereinrepresented by its General Manager, ATTY. OSCAR M.SEVILLA herein after referred to as PPA;-and-The PHILIPPINES COAST GUARD, a governmentagency created by virtue of Republic Act No. 5172, withprincipal office at #139 25th Street, Port Area, Manilaherein represented by the Commandant VADMWILFREDO D. TAMAYO hereinafter referred to as PCG.

WITNESSETH:

WHEREAS, the PPA is mandated by law to establish,maintain and operate port infrastructure design toenhance the safety of ships entering and leaving portenvirons and adjacent sealance;

WHEREAS, the PPA establish the Vessel TrafficManagement Systems (VTMS) at the Port District ofManila and Port of Batangas with the followingobjectives:1. To enhance vessel traffic service of waterways;2. To ensure safety of navigation of vessels;3. To safeguard the security of vessels, facilities,individuals, and their properties;4. To protect the marine environment of surroundingwaters; and

5. To provide users of the VTMS timely information andnecessary assistance within the VTMS covered area.

WHEREAS, the establishment of the VTMS is in theaccordance with the International Conviction on theSafety of Life at Sea (SOLAS) , 1974, as amended,which the Philippines has adopted and ratified;

WHEREAS, the PCG is mandated to enforce and assist,within its capabilities, in the enforcement of allapplicable laws upon the high seas and waters withinthe jurisdiction of the Philippines;

WHEREAS, in order to minimize the risk of collision, the

PCG has establish the Traffic Separation Schemes (TSS)for vessels navigating through CorregidorIsland passages and Verde Island passageways locatedin the provinces of Cavite and Batangas, respectively;

WHEREAS, said TSS lanes established by the PCG havebeen made an integral part of the VTMS covered areas;

NOW, THEREFORE, in consideration of the foregoingpremises, and in order to further promote safety of lifeat sea and protection of the marine environment, thePPA and the PCG hereby agree that they will jointlyimplement the VTMS, subject to the followingguidelines:

A. The PPA shall:1. Direct and supervise the operation of the VTMS

Control Centers2. Designate VTMS Manager/Supervisor who shall be

responsible for the over all operation of the VTMSControl Centers

3. Main workstations covering part of the Manila Bay,Batangas Bay and Balayan Bay including the harborlimits located within the bay

4. Operate and maintain the VTMS Control Centersand radar stations

5. Assign and least nine (9) personnel to man theControl Centers and sustain a 24/7 day operation

6. Provide security in each VTMS Control Center andits respective Radar Stations

7. Provide training for personnel assigned as VTMSoperators and those in charge of the servicing andmaintenance of VTMS relay stations

8. Authorize PCG use the VTMS facility andequipment in broadcasting Notice to Mariners (NOTAM),weather bulletins and other maritime safetyinformation, as well as, for other purposes related in theenforcement of the PCG mandate

9. Be responsible for the establishment andenforcement of house rules covering the command and

control arrangement, access control, securityarrangements and other related matters

10. Designate the Port District Manager-Manila/Northern Luzon and Port Manager Batangas ascoordinators for VTMS Control Center Manila andBatangas respectivelyB. The PCG shall:

1. Assign at least nine (9) PCG personnel in itsControl Center to augment their PPA counterparts inmanning VTMS Control Centers on a 24/7- dayoperation.

2. In coordination to the training and skills thatassigned PCG personnel shall acquire, the PCG shallensure that their assignment with the VTMS ControlCenters will not be less than two (2) years unless,

others, terminated for cause.3. Designated the Station Commanders of CGS

Manila and CGS Batangas as PCG coordinators for VTMSControl Center Manila and Batangas, respectively:

4. Upon request by the PPA, assist in securityaugmentation in the VTMS operation.

5. Man workstation per Control Center coveringa. Corregidors surrounding water and approaches

and part of the Manila Bay; andb. Verde Islands north and south passageways

6. Make available one (1) appropriate watercraftwithin VTMS Manila and Batangas controlled areas forrapid deployment during calls for search and rescue, oipollution, piracy, sea jacking, an other emergencies and

VTMS related missions

The parties further agree that:1. There shall be a regular coordinative meeting at leasonce a month among the PPA, PCG, and the VTMS Staffto be called by PPA2. They shall, within the framework of this Agreementexplore the areas of cooperation including but notlimited to logistical support, personnel, security andother related matters3. Any modifications or changes in this Memorandum ofAgreement shall be made only with the mutual andwritten consent of both parties and that changes shallbe deemed part of the Agreement


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This Memorandum of Agreement shall take effectsigning of the same by herein contracting parties

IN WITHNESS WHEREOF, the parties have hereunto set their hands on this 26th day of February2009, at Manila, Philippines.

Philippine Ports Authority Philippine Coast GuardBy: By:

ATTY. OSCAR M. SEVILLA VADM WILFREDO D. TAMAYOGeneral Manager Commandant

SIGNED IN THE PRESENCE OF:

MR. LEOPOLDO F. BUNGUBUNG RADM RAMON C. LIWAG

AGM for Operations Deputy for OperationsShar

CIVIL CODE OF THE PHILIPPINESCOMMON CARRIERS

ARTICLE 1732. Common carriers are persons,corporations, firms or associations engaged in thebusiness of carrying or transporting passengers orgoods or both, by land, water, or air, for compensation,offering their services to the public.

Vigilance Over Goods

ARTICLE 1733. Common carriers, from the nature of

their business and for reasons of public policy, arebound to observe extraordinary diligence in thevigilance over the goods and for the safety of thepassengers transported by them, according to all thecircumstances of each case. PaitdoSuch extraordinary diligence in the vigilance over thegoods is further expressed in articles 1734, 1735, and1745, Nos. 5, 6, and 7, while the extraordinarydiligence for the safety of the passengers is further setforth in articles 1755 and 1756.ARTICLE 1734. Common carriers are responsible for theloss, destruction, or deterioration of the goods, unlessthe same is due to any of the following causes only:(1) Flood, storm, earthquake, lightning, or other natural

disaster or calamity;(2) Act of the public enemy in war, whetherinternational or civil;(3) Act or omission of the shipper or owner of thegoods;(4) The character of the goods or defects in thepacking or in the containers; meriee(5) Order or act of competent public authority.ARTICLE 1735. In all cases other than those mentionedin Nos. 1, 2, 3, 4, and 5 of the preceding article, if thegoods are lost, destroyed or deteriorated, commoncarriers are presumed to have been at fault or to haveacted negligently, unless they prove that theyobserved extraordinary diligence as required in article1733.

ARTICLE 1736. The extraordinary responsibility of thecommon carrier lasts from the time the goods areunconditionally placed in the possession of, andreceived by the carrier for transportation until thesame are delivered, actually or constructively, by thecarrier to the consignee, or to the person who has aright to receive them, without prejudice to theprovisions of article 1738.ARTICLE 1737. The common carriers duty to observeextraordinary diligence in the vigilance over the goodsremains in full force and effect even when they aretemporarily unloaded or stored in transit, unless theshipper or owner has made use of the right of stoppagein transitu.

ARTICLE 1738. The extraordinary liability of thecommon carrier continues to be operative even duringthe time the goods are stored in a warehouse of thecarrier at the place of destination, until the consigneehas been advised of the arrival of the goods and hashad reasonable opportunity thereafter to remove themor otherwise dispose of them.ARTICLE 1739. In order that the common carrier maybe exempted from responsibility, the natural disastermust have been the proximate and only cause of theloss. However, the common carrier must exercise duediligence to prevent or minimize loss before, duringand after the occurrence of flood, storm or othenatural disaster in order that the common carrier maybe exempted from liability for the loss, destruction, ordeterioration of the goods. The same duty is incumbentupon the common carrier in case of an act of the publicenemy referred to in article 1734, No. 2.ARTICLE 1740. If the common carrier negligently incursin delay in transporting the goods, a natural disastershall not free such carrier from responsibility.ARTICLE 1741. If the shipper or owner merelycontributed to the loss, destruction or deterioration ofthe goods, the proximate cause thereof being thenegligence of the common carrier, the latter shall be

liable in damages, which however, shall be equitablyreduced.ARTICLE 1742. Even if the loss, destruction, odeterioration of the goods should be caused by thecharacter of the goods, or the faulty nature of thepacking or of the containers, the common carrier mustexercise due diligence to forestall or lessen the loss.ARTICLE 1743. If through the order of public authoritythe goods are seized or destroyed, the common carrieis not responsible, provided said public authority hadpower to issue the order.ARTICLE 1744. A stipulation between the commoncarrier and the shipper or owner limiting the liability ofthe former for the loss, destruction, or deterioration ofthe goods to a degree less than extraordinary diligence

shall be valid, provided it be: mimows(1) In writing, signed by the shipper or owner;(2) Supported by a valuable consideration other thanthe service rendered by the common carrier; and(3) Reasonable, just and not contrary to public policy.ARTICLE 1745. Any of the following or similastipulations shall be considered unreasonable, unjusand contrary to public policy:(1) That the goods are transported at the risk of theowner or shipper;(2) That the common carrier will not be liable for anyloss, destruction, or deterioration of the goods;(3) That the common carrier need not observe anydiligence in the custody of the goods;

(4) That the common carrier shall exercise a degree ofdiligence less than that of a good father of a family, orof a man of ordinary prudence in the vigilance over themovables transported;(5) That the common carrier shall not be responsiblefor the acts or omission of his or its employees;(6) That the common carriers liability for actscommitted by thieves, or of robbers who do not actwith grave or irresistible threat, violence or force, isdispensed with or diminished;(7) That the common carrier is not responsible for theloss, destruction, or deterioration of goods on accountof the defective condition of the car, vehicle, ship


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airplane or other equipment used in the contract ofcarriage.ARTICLE 1746. An agreement limiting the commoncarriers liability may be annulled by the shipper orowner if the common carrier refused to carry the goodsunless the former agreed to such stipulation.ARTICLE 1747. If the common carrier, without justcause, delays the transportation of the goods orchanges the stipulated or usual route, the contractlimiting the common carriers liability cannot beavailed of in case of the loss, destruction, ordeterioration of the goods.ARTICLE 1748. An agreement limiting the commoncarriers liability for delay on account of strikes or riotsis valid.ARTICLE 1749. A stipulation that the common carriersliability is limited to the value of the goods appearingin the bill of lading, unless the shipper or ownerdeclares a greater value, is binding.ARTICLE 1750. A contract fixing the sum that may berecovered by the owner or shipper for the loss,destruction, or deterioration of the goods is valid, if it isreasonable and just under the circumstances, and hasbeen fairly and freely agreed upon.ARTICLE 1751. The fact that the common carrier has no

competitor along the line or route, or a part thereof, towhich the contract refers shall be taken intoconsideration on the question of whether or not astipulation limiting the common carriers liability isreasonable, just and in consonance with public policy.ARTICLE 1752. Even when there is an agreementlimiting the liability of the common carrier in thevigilance over the goods, the common carrier isdisputably presumed to have been negligent in case oftheir loss, destruction or deterioration.ARTICLE 1753. The law of the country to which thegoods are to be transported shall govern the liability ofthe common carrier for their loss, destruction ordeterioration.ARTICLE 1754. The provisions of articles 1733 to 1753

shall apply to the passengers baggage which is not inhis personal custody or in that of his employee. As toother baggage, the rules in articles 1998 and 2000 to2003 concerning the responsibility of hotel-keepersshall be applicable.

Safety of PassengersARTICLE 1755. A common carrier is bound to carry thepassengers safely as far as human care and foresightcan provide, using the utmost diligence of verycautious persons, with a due regard for all thecircumstances.ARTICLE 1756. In case of death of or injuries to

passengers, common carriers are presumed to havebeen at fault or to have acted negligently, unless theyprove that they observed extraordinary diligence asprescribed in articles 1733 and 1755.ARTICLE 1757. The responsibility of a common carrierfor the safety of passengers as required in articles1733 and 1755 cannot be dispensed with or lessenedby stipulation, by the posting of notices, by statementson tickets, or otherwise.ARTICLE 1758. When a passenger is carriedgratuitously, a stipulation limiting the common carriersliability for negligence is valid, but not for wilful acts orgross negligence.

The reduction of fare does not justify any limitation ofthe common carriers liability.ARTICLE 1759. Common carriers are liable for thedeath of or injuries to passengers through thenegligence or wilful acts of the formers employeesalthough such employees may have acted beyond thescope of their authority or in violation of the orders ofthe common carriers. orIsitThis liability of the common carriers does not ceaseupon proof that they exercised all the diligence of agood father of a family in the selection and supervisionof their employees.ARTICLE 1760. The common carriers responsibilityprescribed in the preceding article cannot beeliminated or limited by stipulation, by the posting onotices, by statements on the tickets or otherwise.ARTICLE 1761. The passenger must observe thediligence of a good father of a family to avoid injury tohimself.ARTICLE 1762. The contributory negligence of thepassenger does not bar recovery of damages for hisdeath or injuries, if the proximate cause thereof is thenegligence of the common carrier, but the amount ofdamages shall be equitably reduced.ARTICLE 1763. A common carrier is responsible fo

injuries suffered by a passenger on account of thewilful acts or negligence of other passengers or ostrangers, if the common carriers employees throughthe exercise of the diligence of a good father of afamily could have prevented or stopped the act oomission.Common ProvisionsARTICLE 1764. Damages in cases comprised in thisSection shall be awarded in accordance with Title XVIIof this Book, concerning Damages. Article 2206 shalalso apply to the death of a passenger caused by thebreach of contract by a common carrier.ARTICLE 1765. The Public Service Commission may, onits own motion or on petition of any interested party

after due hearing, cancel the certificate of publicconvenience granted to any common carrier thatrepeatedly fails to comply with his or its duty toobserve extraordinary diligence as prescribed in thisSection.ARTICLE 1766. In all matters not regulated by thisCode, the rights and obligations of common carriersshall be governed by the Code of Commerce and byspecial laws.

Title XII. - DEPOSITCHAPTER 3NECESSARY DEPOSIT

Art. 1998. The deposit of effects made by the travellersin hotels or inns shall also be regarded as necessaryThe keepers of hotels or inns shall be responsible fothem as depositaries, provided that notice was given tothem, or to their employees, of the effects brought bythe guests and that, on the part of the latter, they takethe precautions which said hotel-keepers or theisubstitutes advised relative to the care and vigilance oftheir effects. (1783)Art. 2000. The responsibility referred to in the twopreceding articles shall include the loss of, or injury tothe personal property of the guests caused by theservants or employees of the keepers of hotels or innsas well as strangers; but not that which may proceed


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from any force majeure. The fact that travellers areconstrained to rely on the vigilance of the keeper ofthe hotels or inns shall be considered in determiningthe degree of care required of him. (1784a)Art. 2001. The act of a thief or robber, who has enteredthe hotel is not deemed force majeure, unless it isdone with the use of arms or through an irresistibleforce. (n)Art. 2002. The hotel-keeper is not liable forcompensation if the loss is due to the acts of the guest,his family, servants or visitors, or if the loss arises fromthe character of the things brought into the hotel. (n)Art. 2003. The hotel-keeper cannot free himself fromresponsibility by posting notices to the effect that he isnot liable for the articles brought by the guest. Anystipulation between the hotel-keeper and the guestwhereby the responsibility of the former as set forth inarticles 1998 to 2001 is suppressed or diminished shallbe void. (n)


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Title XVIII. DAMAGES

Art. 2199. Except as provided by law or by stipulation,one is entitled to an adequate compensation only forsuch pecuniary loss suffered by him as he has dulyproved. Such compensation is referred to as actual orcompensatory damages.Art. 2201. In contracts and quasi-contracts, thedamages for which the obligor who acted in good faithis liable shall be those that are the natural andprobable consequences of the breach of the obligation,and which the parties have foreseen or could havereasonably foreseen at the time the obligation wasconstituted.In case of fraud, bad faith, malice or wanton attitude,the obligor shall be responsible for all damages whichmay be reasonably attributed to the non-performanceof the obligation. (1107a)Art. 2203. The party suffering loss or injury mustexercise the diligence of a good father of a family tominimize the damages resulting from the act oromission in question.Art. 2206. The amount of damages for death caused bya crime or quasi-delict shall be at least three thousandpesos, even though there may have been mitigating

circumstances. In addition:(1) The defendant shall be liable for the loss of theearning capacity of the deceased, and the indemnityshall be paid to the heirs of the latter; such indemnityshall in every case be assessed and awarded by thecourt, unless the deceased on account of permanentphysical disability not caused by the defendant, had noearning capacity at the time of his death;(2) If the deceased was obliged to give supportaccording to the provisions of Article 291, the recipientwho is not an heir called to the decedent's inheritanceby the law of testate or intestate succession, maydemand support from the person causing the death, fora period not exceeding five years, the exact duration tobe fixed by the court;

(3) The spouse, legitimate and illegitimate descendantsand ascendants of the deceased may demand moraldamages for mental anguish by reason of the death ofthe deceased.

CHAPTER 3OTHER KINDS OF DAMAGES

Art. 2216. No proof of pecuniary loss is necessary inorder that moral, nominal, temperate, liquidated orexemplary damages, may be adjudicated. Theassessment of such damages, except liquidated ones,is left to the discretion of the court, according to thecircumstances of each case.

SECTION 1. - Moral DamagesArt. 2217. Moral damages include physical suffering,mental anguish, fright, serious anxiety, besmirchedreputation, wounded feelings, moral shock, socialhumiliation, and similar injury. Though incapable ofpecuniary computation, moral damages may berecovered if they are the proximate result of thedefendant's wrongful act for omission.Art. 2219. Moral damages may be recovered in thefollowing and analogous cases:(1) A criminal offense resulting in physical injuries;(2) Quasi-delicts causing physical injuries;

(3) Seduction, abduction, rape, or other lascivious acts;(4) Adultery or concubinage;(5) Illegal or arbitrary detention or arrest;(6) Illegal search;(7) Libel, slander or any other form of defamation;(8) Malicious prosecution;(9) Acts mentioned in Article 309;(10) Acts and actions referred to in Articles 21, 26, 2728, 29, 30, 32, 34, and 35.The parents of the female seduced, abducted, rapedor abused, referred to in No. 3 of this article, may alsorecover moral damages.The spouse, descendants, ascendants, and brothersand sisters may bring the action mentioned in No. 9 ofthis article, in the order named.Art. 2220. Willful injury to property may be a legaground for awarding moral damages if the court shouldfind that, under the circumstances, such damages arejustly due. The same rule applies to breaches ocontract where the defendant acted fraudulently or inbad faith.

SECTION 5. - Exemplary or Corrective DamagesArt. 2229. Exemplary or corrective damages are

imposed, by way of example or correction for thepublic good, in addition to the moral, temperateliquidated or compensatory damages.Art. 2232. In contracts and quasi-contracts, the courtmay award exemplary damages if the defendant actedin a wanton, fraudulent, reckless, oppressive, omalevolent manner.Art. 2233. Exemplary damages cannot be recovered asa matter of right; the court will decide whether or notthey should be adjudicated.

SECTION 2. - Nominal DamagesArt. 2221. Nominal damages are adjudicated in orderthat a right of the plaintiff, which has been violated or

invaded by the defendant, may be vindicated orecognized, and not for the purpose of indemnifyingthe plaintiff for any loss suffered by him.

SECTION 3. - Temperate or Moderate DamagesArt. 2224. Temperate or moderate damages, which aremore than nominal but less than compensatorydamages, may be recovered when the court finds thatsome pecuniary loss has been suffered but its amountcan not, from the nature of the case, be provided withcertainty.

SECTION 4. - Liquidated Damages

Art. 2226. Liquidated damages are those agreed uponby the parties to a contract, to be paid in case obreach thereof.

CHAPTER 2ACTUAL OR COMPENSATORY DAMAGES

Art. 2208. In the absence of stipulation, attorney's feesand expenses of litigation, other than judicial costscannot be recovered, except:(1) When exemplary damages are awarded;


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(2) When the defendant's act or omission hascompelled the plaintiff to litigate with third persons orto incur expenses to protect his interest;(3) In criminal cases of malicious prosecution againstthe plaintiff;(4) In case of a clearly unfounded civil action orproceeding against the plaintiff;(5) Where the defendant acted in gross and evidentbad faith in refusing to satisfy the plaintiff's plainlyvalid, just and demandable claim;(6) In actions for legal support;(7) In actions for the recovery of wages of householdhelpers, laborers and skilled workers;(8) In actions for indemnity under workmen'scompensation and employer's liability laws;(9) In a separate civil action to recover civil liabilityarising from a crime;(10) When at least double judicial costs are awarded;(11) In any other case where the court deems it justand equitable that attorney's fees and expenses oflitigation should be recovered.In all cases, the attorney's fees and expenses oflitigation must be reasonable.

Art. 2210. Interest may, in the discretion of the court,

be allowed upon damages awarded for breach ofcontract.

REPEALING CLAUSEArt. 2270. The following laws and regulations arehereby repealed:

(1) Those parts and provisions of the Civil Codeof 1889 which are in force on the date whenthis new Civil Code becomes effective:(2) The provisions of the Code of Commercegoverning sales, partnership, agency, loan,deposit and guaranty;(3) The provisions of the Code of CivilProcedure on prescription as far as inconsistent

with this Code; and(4) All laws, Acts, parts of Acts, rules of court,executive orders, and administrativeregulations which are inconsistent with thisCode. (n)

CHAPTER 2CLASSIFICATION OF CREDITSArt. 2241. With reference to specific movable propertyof the debtor, the following claims or liens shall bepreferred:(1) Duties, taxes and fees due thereon to the State orany subdivision thereof;

(2) Claims arising from misappropriation, breach oftrust, or malfeasance by public officials committed inthe performance of their duties, on the movables,money or securities obtained by them;(3) Claims for the unpaid price of movables sold, onsaid movables, so long as they are in the possession ofthe debtor, up to the value of the same; and if themovable has been resold by the debtor and the price isstill unpaid, the lien may be enforced on the price; thisright is not lost by the immobilization of the thing bydestination, provided it has not lost its form, substanceand identity; neither is the right lost by the sale of thething together with other property for a lump sum,

when the price thereof can be determinedproportionally;(4) Credits guaranteed with a pledge so long as thethings pledged are in the hands of the creditor, othose guaranteed by a chattel mortgage, upon thethings pledged or mortgaged, up to the value thereof;(5) Credits for the making, repair, safekeeping opreservation of personal property, on the movable thusmade, repaired, kept or possessed;(6) Claims for laborers' wages, on the goodsmanufactured or the work done;(7) For expenses of salvage, upon the goods salvaged;(8) Credits between the landlord and the tenantarising from the contract of tenancy on shares, on theshare of each in the fruits or harvest;(9) Credits for transportation, upon the goods carriedfor the price of the contract and incidental expensesuntil their delivery and for thirty days thereafter;(10) Credits for lodging and supplies usually furnishedto travellers by hotel keepers, on the movablesbelonging to the guest as long as such movables are inthe hotel, but not for money loaned to the guests;(11) Credits for seeds and expenses for cultivation andharvest advanced to the debtor, upon the fruitsharvested;

(12) Credits for rent for one year, upon the personaproperty of the lessee existing on the immovableleased and on the fruits of the same, but not on moneyor instruments of credit;(13) Claims in favor of the depositor if the depositaryhas wrongfully sold the thing deposited, upon the priceof the sale.In the foregoing cases, if the movables to which thelien or preference attaches have been wrongfullytaken, the creditor may demand them from anypossessor, within thirty days from the unlawful seizure(1922a)

BOOK III

DIFFERENT MODES OF ACQUIRING OWNERSHIP

PRELIMINARY PROVISION

Art. 712. Ownership is acquired by occupation and byintellectual creation.Ownership and other real rights over property areacquired and transmitted by law, by donation, byestate and intestate succession, and in consequence ofcertain contracts, by tradition.They may also be acquired by means oprescription. (609a)


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COMMON CARRIERS

CODE OF COMMERCE OF THE PHILIPPINESCOMMERCIAL CONTRACTS FORTRANSPORTATION

ARTICLE 361. [The merchandise shall be transportedat the risk and venture of the shipper, if the contraryhas not been expressly stipulated.As a consequence, all the losses and deteriorationswhich the goods may suffer during the transportationby reason of fortuitous event, force majeure, or theinherent nature and defect of the goods, shall be forthe account and risk of the shipper. cdtaProof of these accidents is incumbent upon the carrier.]

ARTICLE 366. Within the twenty-four hours followingthe receipt of the merchandise, the claim against thecarrier for damage or average be found therein uponopening the packages, may be made, provided that theindications of the damage or average which gives riseto the claim cannot be ascertained from the outsidepart of such packages, in which case the claim shall be

admitted only at the time of receipt.After the periods mentioned have elapsed, or thetransportation charges have been paid, no claim shallbe admitted against the carrier with regard to thecondition in which the goods transported weredelivered.

ART. 698. In case of interruption of a voyage alreadybegun, the passengers shall only be obliged to pay thefare in proportion to the distance covered, withoutright to recover damages if the interruption is due tofortuitous event or force majeure, but with a right toindemnity, if the interruption should have been causedby the captain exclusively. If the interruption should becaused by the disability of the vessel, and the

passenger should agree to wait for her repairs, he maynot be required to pay any increased fare of passage,but his living expenses during the delay shall be for hisown account.


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December 1, 1888CODE OF COMMERCE *

TITLE VIICommercial Contracts for Transportation Overland

ARTICLE 349. A contract for all kinds of transportationover land or river shall be considered commercial:

1. When it involves merchandise orany commercial goods.

2. When, no matter what its objectmay be, the carrier is amerchant or is customarilyengaged in makingtransportation for the public.

ARTICLE 350. The shipper as well as the carrier ofmerchandise and goods may mutually demand of eachother the issue of a bill of lading in which there shall bestated:

1. The name, surname, and domicileof the shipper.

2. The name, surname, and domicileof the carrier.

3. The name, surname and domicileof the person to whom or to

whose order the goods areaddressed, or whether theyare to be delivered to thebearer of the said bill.

4. A description of the goods, statingtheir generic character, theirweight, and the externalmarks or signs of thepackages containing thesame.

5. The cost of the transportation.6. The date on which the shipment is

made.7. The place of the delivery to the

carrier.

8. The place and time at which thedelivery is to be made to theconsignee.

9. The damages to be paid by thecarrier in case of delay, if anyagreement is made on thispoint.

ARTICLE 351. In shipments made over railroads or byother enterprises which are subject to schedules or thetime fixed by regulations, it shall be sufficient that thebills of lading or declarations of shipment furnished bythe shipper refer, with regard to the rate, terms, andspecial conditions of the transportation, to theschedules and regulations, the application of which is

requested; and should no schedule be determined thecarrier must apply the rate of the merchandise payingthe lowest, with the condition inherent thereto, alwaysincluding such statement or reference in the bill oflading delivered to the shipper.ARTICLE 352. Bills of lading or tickets in the case oftransportation of passengers may be different, one forpersons and another for baggage, but all of them shallcontain the name of the carrier, the date of shipment,the points of departure and arrival, the price, and withregard to baggage, the number and weight of thepackages, with any other indications which may beconsidered necessary in order to easily identify them.

ARTICLE 353. The legal basis of the contract betweenthe shipper and the carrier shall be the bills of ladingby the contents of which all disputes which may arisewith regard to their execution and fulfillment shall bedecided without admission of other exceptions thanforgery or material errors in the drafting thereof.After the contract has been complied with the bill oflading issued by the carrier shall be returned to himand by virtue of the exchange of this certificate for thearticle transported, the respective obligations andactions shall be considered as canceled, unless in thesame act the claims which the contracting partiesdesired to reserve are reduced to writing, exceptionbeing made of the provisions of Article 366.If in case of loss or for any other reason whatsoeverthe consignee can not return upon receiving themerchandise the bill of lading subscribed by thecarrier, he shall give said carrier a receipt for the goodsdelivered, this receipt producing the same effects asthe return of the bill of lading.ARTICLE 354. In the absence of a bill of lading therespective claims of the parties shall be decided by thelegal proofs that each one may submit in support of hisclaims, in accordance with the general provisionsestablished in this Code for commercial contracts. cd

ARTICLE 355. The liability of the carrier shall beginfrom the moment he receives the merchandise, inperson or through a person intrusted thereto in theplace indicated for their reception.ARTICLE 356. Carriers may refuse to accept packageswhich appear unfit for transportation; and if saidtransportation is to be made over a railroad, and theshipment is insisted on, the company shall carry itbeing exempt from all liability if its objections are sostated in the bill of lading.ARTICLE 357. If the carrier by reason of well-foundedsuspicions as to the correctness of the declaration ofthe contents of a package should determine toexamine it, he shall do so before witnesses, in thepresence of the shipper or of the consignee.

Should the shipper or consignee to be cited not appearthe examination shall be made before a notary, whoshall draft a certificate of the result of the examinationfor the proper purposes.If the declaration of the shipper should be correct, theexpenses caused by the examination and those ocarefully repacking the packages shall be defrayed bythe carrier, and in a contrary case by the shipper.ARTICLE 358. Should no period within which goods areto be delivered be previously fixed, the carrier shall beunder the obligation to forward them in the firstshipment of the same or similar merchandise which hemay make to the point of delivery; and should he notdo so, the damages occasioned by the delay shall be

suffered by him.ARTICLE 359. If there should be an agreement betweenthe shipper and the carrier with regard to the road overwhich the transportation is to be made, the carrier cannot change the route, unless obliged to do so by forcemajeure; and should he do so without being forced tohe shall be liable for any damage which may besuffered by the goods transported for any other causewhatsoever, besides being required to pay the amountwhich may have been stipulated for such a case.When on account of the said force majeure the carrieis obliged to take another route, causing an increase in


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the transportation charges, he shall be reimbursed forsaid increase after presenting the formal proof thereof.ARTICLE 360. The shipper may, without changing theplace where the delivery is to be made, change theconsignment of the goods delivered to the carrier, andthe latter shall comply with his orders, provided that atthe time of making the change of the consignee the billof lading subscribed by the carrier be returned to him,if one were issued, exchanging it for anothercontaining the novation of the contract.The expenses arising from the change of consignmentshall be defrayed by the shipper.ARTICLE 361. Merchandise shall be transported at therisk and venture of the shipper, if the contrary was notexpressly stipulated.Therefore, all damages and impairment suffered by thegoods during the transportation, by reason of accident,force majeure, or by virtue of the nature or defect ofthe articles, shall be for the account and risk of theshipper. cdtaThe proof of these accidents is incumbent on thecarrier.ARTICLE 362. The carrier, however, shall be liable forthe losses and damages arising from the causesmentioned in the foregoing article if it is proved that

they occurred on account of his negligence or becausehe did not take the precautions usually adopted bycareful persons, unless the shipper committed fraud inthe bill of lading, making him believe that the goodswere of a class or quality different from what theyreally were.If, notwithstanding the precaution referred to in thisarticle, the goods transported run the risk of being loston account of the nature or by reason of anunavoidable accident, without there being time for theowners of the same to dispose thereof, the carrier shallproceed to their sale, placing them for this purpose atthe disposal, of the judicial authority or the officialsdetermined by special provisions.ARTICLE 363. With the exception of the cases

prescribed in the second paragraph of Article 361, thecarrier shall be obliged to deliver the goodstransported in the same condition in which, accordingto the bill of lading, they were at the time of theirreceipt, without any detriment or impairment, andshould he not do so, he shall be obliged to pay thevalue of the goods not delivered at the point wherethey should have been and at the time the deliveryshould have taken place.If part of the goods transported should be delivered theconsignee may refuse to receive them, when he provesthat he can not make use thereof without the others.ARTICLE 364. If the effect of the damage referred to inArticle 361 should be only a reduction in the value of

the goods, the obligation of the carrier shall bereduced to the payment of the amount of saidreduction in value, after appraisal by experts.ARTICLE 365. If, on account of the damage, the goodsare rendered useless for purposes of sale orconsumption in the use for which they are properlydestined the consignee shall not be bound to receivethem, and may leave them on the hands of the carrier,demanding payment therefor at current market prices.If among the goods damaged there should be some ingood condition and without any defect whatsoever, theforegoing provision shall be applicable with regard tothe damaged ones, and the consignee shall receivethose which are sound, this separation being made by

distinct and separate articles, no object being dividedfor the purpose, unless the consignee proves theimpossibility of conveniently making use thereof in thisform. cdtThe same provision shall be applied to merchandise inbales or packages, with distinction of the packageswhich appear sound.ARTICLE 366. Within the twenty-four hours followingthe receipt of the merchandise a claim may be broughtagainst the carrier on account of damage or averagefound therein on opening the packages, provided thatthe indications of the damage or average giving rise tothe claim can not be ascertained from the exterior ofsaid packages, in which case said claim would only beadmitted on the receipt of the packages.After the periods mentioned have elapsed, or after thetransportation charges have been paid, no claimwhatsoever shall be admitted against the carrier withregard to the condition in which the goods transportedwere delivered.ARTICLE 367. If there should occur doubts and disputesbetween the consignee and the carrier with regard tothe condition of goods transported at the time of theirdelivery to the former, the said goods shall beexamined by experts appointed by the parties, and a

third one, in case of disagreement, appointed by thejudicial authority, the result of the examination beingreduced to writing; and if the persons interested shouldnot agree to the report of the experts and could notsettle their disputes, said judicial authority shall ordethe deposits of the merchandise in a safe warehouseand the parties interested shall make use of their rightsin the proper manner.ARTICLE 368. The carrier must deliver to the consigneewithout any delay or difficulty the merchandisereceived by him, by reason of the mere fact of beingdesignated in the bill of lading to receive it; and shouldsaid carrier not do so he shall be liable for the damageswhich may arise therefrom.ARTICLE 369. Should the consignee be not found at the

domicile indicated in the bill of lading, or should refuseto pay the transportation charges and expenses, or toreceive the goods, the deposit of said goods shall beordered by the municipal judge, where there is nojudge of first instance, to be placed at the disposal ofthe shipper or sender, without prejudice to a personhaving a better right, this deposit having all the effectsof a delivery.ARTICLE 370. If a period has been fixed for the deliveryof the goods, it must be made within the same, andotherwise the carrier shall pay the indemnity agreedupon in the bill of lading, neither the shipper noconsignee being entitled to anything else.Should no indemnity have been agreed upon and the

delay exceeds the time fixed in the bill of lading, thecarrier shall be liable for the damages which may havebeen caused by the delay.ARTICLE 371. In cases of delay on account of the faultof the carrier, referred to in the foregoing articles, theconsignee may leave the goods transported on thehands of the carrier, informing him thereof in writingbefore the arrival of the same at the point odestination.When this abandonment occurs, the carrier shalsatisfy the total value of the goods, as if they had beenlost or mislaid. aisadcShould the abandonment not occur the indemnity forloss and damages on account of the delays can not


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exceed the current price of the goods transported onthe day and at the place where the delivery was tohave been made. The same provision shall beobserved in all cases where this indemnity is due.ARTICLE 372. The appraisement of the goods which thecarrier must pay in case of their being lost or mislaidshall be fixed in accordance with what is stated in thebill of lading, no proofs being allowed on the part of theshipper that there were among the goods declaredtherein articles of greater value, and money.Horses, vehicles, vessels, equipment, and all the otherprincipal and accessory means of transportation, shallbe especially obligated in favor of the shipper,although with relation to railroads said obligation shallbe subordinated to the provisions of the laws ofconcession with regard to property and to those of thisCode with regard to the manner and form of makingattachments and retentions against the saidcompanies.ARTICLE 373. A carrier who delivers merchandise to aconsignee by virtue of agreements or combinedservices with other carriers shall assume theobligations of the carriers who preceded him, reservinghis right to proceed against the latter if he should notbe directly responsible for the fault which gives rise to

the claim of the shipper or of the consignee.The carrier making the delivery shall also assume allthe actions and rights of those who may have precededhim in the transportation.The sender and the consignee shall have an immediateright of action against the carrier who executed thetransportation contract, or against the other carrierswho received the goods transported without reserve.The reservations made by the latter shall not exemptthem, however, from the liabilities they may haveincurred by reason of their own acts.ARTICLE 374. The consignees to whom the remittancemay have been made can not defer the payment of theexpenses and transportation charges on the goods thatthey received after twenty-four hours have elapsed

from the time of the delivery; and in case of delay inmaking this payment, the carrier may request thejudicial sale of the goods he transported to a sufficientamount to cover the transportation charges and theexpenses incurred.ARTICLE 375. The goods transported shall bespecifically obligated to answer for the transportationcharges and for the expenses and fees caused by thesame during their transportations, or until the time oftheir delivery.This special right shall be limited to eight days afterthe delivery has been made, and after said prescriptionthe carrier shall have no further right of action thanthat corresponding to an ordinary creditor.

ARTICLE 376. The preference of the carrier to thepayment of what is due him for the transportation andexpenses of the goods delivered to the consignee shallnot be affected by the bankruptcy of the latter,provided the action is brought within the eight daysmentioned in the foregoing article.ARTICLE 377. The carrier shall be liable for all theconsequences arising from noncompliance on his partwith the formalities prescribed by the laws andregulations of the public administration during theentire course of the trip and on the arrival at the pointof destination, except when his omission arises fromhis having been induced into error by false statementsof the shipper in the declaration of the merchandise.

If the carrier has acted in accordance with a formaorder received from the shipper or consignee of themerchandise both shall incur liability. cdARTICLE 378. Transportation agents shall be obliged tokeep a special registry, with the formalities required byArticle 36, in which there shall be entered, inprogressive order of numbers and dates, all the goodsthe transportation of which is undertaken, stating thecircumstances required by Articles 350 et seq. for theresponsive bills of lading.ARTICLE 379. The provisions contained in Articles 349et seq. shall also be understood as relating to personswho, although they do not personally effect thetransportation of commercial goods, contract to do sothrough others, either as contractors for a special andfixed transaction or as freight and transportationagents.In either case they shall be subrogated to the place ofthe carriers with regard to the obligations and liabilityof the latter, as well as with regard to their right.


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BOOK IIIMaritime CommerceTITLE IVessels

ARTICLE 573. Merchant vessels constitute propertywhich may be acquired and transferred by any of themeans recognized by law. The acquisition of a vesselmust be included in a written instrument, which shallnot produce any effect with regard to third persons ifnot recorded in the mercantile registry. cdThe ownership of a vessel shall also be acquired by thepossession thereof in good faith for three years, with agood title duly recorded.In the absence of any of these requisites, uninterruptedpossession for ten years shall be necessary in order toacquire ownership.A captain can not acquire by prescription the ship ofwhich he is in command.ARTICLE 574. The builders of vessels may employ thematerial and with regard to their construction andrigging may follow the system which is mostconvenient to their interests. Ship agents and seamenshall be subject to the provisions of the laws andregulations of the public administration on navigation,

customs, health, safety of the vessels, and othersimilar provisions.ARTICLE 575. Part owners of vessels shall enjoy theright of option of purchase and withdrawal in the salesmade to strangers; but they can only exercise it withinthe nine days following the record of the sale in theregistry and by delivering the price at once.ARTICLE 576. The rigging, tackle, stores, and engine ofa vessel, if it is a steamer, shall always be understoodas included in the sale thereof if they are owned by thevendor at the time of the sale.The arms, munitions of war, provisions, and fuel shallnot be considered as included in the sale.The vendor shall be under the obligation to deliver tothe purchaser a certificate of the record of the vessel in

the registry up to the date of the sale.ARTICLE 577. If the alienation of the vessel should takeplace while said vessel is on a voyage, the purchasershall receive all the freights it earns from the time itreceived its last cargo, and the payment of the crewand other persons which go to make up itscomplement shall be paid by the purchaser for the saidvoyage.If the sale takes place after the arrival of the vessel atthe port of its destination, the freights shall belong tothe vendors and he shall pay the crew and otherpersons which go to make up its complement, unlessthere is an agreement to the contrary in either case.ARTICLE 578. If, the steamer being on a voyage or in a

foreign port, her owner or owners should voluntarilyalienate her either to Spaniards * or to foreignersdomiciled in the capital or in a port of another country,the bill of sale shall be executed before the consul ofSpain * of the port where she terminates her voyage,and said instrument shall have no effect with regard tothird persons if it is not recorded in the registry of theconsulate. The consul shall immediately forward a truecopy of the bill of purchase of the vessel to the[commercial registry] of the port where said vessel isrecorded and registered.In every case the alienation of the vessel must bestated, indicating whether the vendor receives the fullprice or part thereof, or whether he retains any interest

in said vessel in full or in part. In case the sale is madeto a Spaniard, * this fact shall be stated in thecertificate of navigation. aisadcWhen, the ship being on a voyage, it should berendered useless for navigation, the captain shall applyto the judge or court of competent jurisdiction of theport of arrival, should it be a foreign port, to the consuof Spain, * should there be one or to the judge, or court,or local authority in the absence of the former; and theconsul, or the judge, or court, or in their absence, thelocal authority, shall order an examination of the vesseto be made.If the consignee or the underwriter should reside atsaid port, or should have representatives there, theymust be cited in order to take part in the proceedingsfor the account of whom it may concern.ARTICLE 579. After the damage to the vessel has beenproven as well as the impossibility of her beingrepaired, to continue the voyage, her sale at publicauction shall be ordered, subject to the following rules:

1. The hull of the vessel, her rigging,engines, stores, and otherarticles shall be appraised bymeans of an inventory, said

proceedings being brought tothe notice of the persons whomay wish to take part in theauction.

2. The order or decree ordering thepublic auction shall be postedin the usual places, and shallbe advertised in thenewspapers of the portwhere the auction is to beheld, should there be any,and in the other newspaperswhich the court maydetermine.

The period which may be fixed for

the auction can not be lessthan twenty days.

3. These advertisements shall berepeated every ten days, andtheir publication shall bestated in the proceedings.

4. The auction shall be held on theday fixed, with the formalitiesprescribed in the commonlaw for judicial sales.

5. If the sale should take place whenthe vessel is in a foreigncountry, the specialprovisions governing such

cases shall be observed.ARTICLE 580. In all judicial sales of vessels for thepayment of creditors, the said creditors shall havepreference in the order stated:

1. The credits in favor of the publictreasury proven by means ofan official certificate of thecompetent authority.

2. The judicial costs of theproceedings, according to anappraisement approved bythe judge or court.

3. The pilotage charges, tonnagedues, and the other sea or


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port charges, proven bymeans of proper certificatesof the officers intrusted withthe collection.

4. The salaries of the caretakers andwatchmen of the vessel andany other expense connectedwith the preservation of saidvessel, from the time ofarrival until her sale, whichappear to have been paid orare due by virtue of a trueaccount approved by thejudge or court. cdta

5. The rent of the warehouse wherethe rigging and stores of thevessel have been taken careof, according to contract.

6. The salaries due the captain andcrew during their lastvoyage, which shall beverified by virtue of theliquidation made from therolls of the crew and accountbooks of the vessel,

approved by the chief of theBureau of Merchant Marinewhere there is one, and in hisabsence by the consul, orjudge, or court.

7. The reimbursement for the parts ofthe freight the captain mayhave sold in order to repairthe vessel, provided the salehas been ordered by ajudicial instrument executedwith the formalities requiredin such cases, and recordedin the certificate of theregistry of the vessel.

8. The part of the price which has notbeen paid the last vendor,the credits pending for thepayment of material andwork in the construction ofthe vessel, when it has notnavigated, and those arisingfrom the repair andequipment of the vessel andits provisioning with victualsand fuel during its lastvoyage.

In order that the credits provided for in this subdivisionmay enjoy the preference they must appear by

contracts recorded in the commercial registry, or ifthey were contracted for the vessel while on a voyageand said vessel has not returned to the port of herregistry, they must be made under the authorityrequired for such cases and entered in the certificate ofregistry of the said vessel. cdtai

9. The amounts borrowed onbottomry bonds before thedeparture of the vessel,proven by means of thecontracts executed accordingto law and recorded in thecommercial registry; theamounts borrowed during the

voyage with the authoritymentioned in the foregoingsubdivision, filling the samerequisites, and the insurancepremium, proven by thepolicy of the contract orcertificate taken from thebooks of the broker.

10. The indemnity due the shippersfor the value of the goodsshipped, which were notdelivered to the consignees,or for averages suffered forwhich the vessel is liable,provided either appear in ajudicial or arbitrationdecision.

ARTICLE 581. If the proceeds of the sale are notsufficient to pay all the creditors included in onenumber or grade, the amount shall be divided amongthem pro rata.ARTICLE 582. After the bill of the judicial sale aauction has been executed and recorded in thecommercial registry, all the other liabilities of thevessel in favor of the creditors shall be considered

canceled.But if the sale should have been voluntary, and tookplace while the vessel was on a voyage, the creditorsshall retain their rights against the vessel until hereturn to the port of her registry, and three monthsafter the record of sale in the commercial registry, orafter her arrival.ARTICLE 583. If the ship being on a voyage the captainshould find it necessary to contract one or more of theobligations mentioned in Nos. 8 and 9 of Article 580, heshall apply to the judge or court if he is in Spanishterritory, and otherwise to the consul of Spain, * shouldthere be one, and, in his absence to the judge or courtor to the proper local authority, presenting thecertificate of the registry of the vessel treated of in

Article 612, and the instruments proving the obligationcontracted.The judge or court, the consul or the local authority asthe case may be, in view of the result of theproceedings instituted, shall make a temporarymemorandum in the certificate of their result, in ordethat it may be recorded in the registry when the vessereturns to the port of her registry, or so that it can beadmitted as a legal and preferred obligation in case ofsale before the return, by reason of the sale of thevessel by virtue of a declaration of unseaworthiness.The lack of this formality shall make the captainpersonally liable to the creditors who may beprejudiced through his fault.

ARTICLE 584. The vessels subject to the liability for thecredits mentioned in Article 580 may be attached andjudicially sold in the manner prescribed in Article 579in the port in which they are, at the instance of any ofthe creditors; but if they should be freighted and readyto sail the attachment can not take place except fordebts contracted for the preparation and provisioningof the vessel for the same voyage, and even then theattachment shall be dissolved if any person interestedin her sailing should give bond for the return of thevessel within the period fixed in the certificate onavigation, and binding himself to pay the debt in sofar as it may be legal, should the vessel be delayed in


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her return even if it were caused by some fortuitousevent.For debts of any other kind whatsoever not included inthe said Article 580, the vessel can only be attached inthe port of her registry.ARTICLE 585. For all purposes of law not modified orrestricted by the provisions of this Code, vessels shallcontinue to be considered as personal property.

TITLE IIPersons Who May Take Part in Maritime CommerceSECTION IOwners of Vessels and Ship Agents

ARTICLE 586. The owner of a vessel and the agent shallbe civilly liable for the acts of the captain and for theobligations contracted by the latter to repair, equip,and provision the vessel, provided the creditor provesthat the amount claimed was invested therein.By agent is understood the person intrusted with theprovisioning of a vessel, or who represents her in theport in which she happens to be.ARTICLE 587. The agent shall also be civilly liable forthe indemnities in favor of third persons which arisefrom the conduct of the captain in the care of thegoods which the vessel carried; but he may exempthimself therefrom by abandoning the vessel with all

her equipments and the freight he may have earnedduring the voyage.ARTICLE 588. Neither the owner of the vessel nor theagent shall be liable for the obligations contracted bythe captain if the latter exceeds his powers andprivileges which are his by reason of his position orhave been conferred upon him by the former.However, if the amounts claimed were made use of forthe benefit of the vessel, the owner or agent shall beliable.ARTICLE 589. If two or more persons should be partowners of a merchant vessel, an association shall bepresumed as established by the part owners.This association shall be governed by the resolutions ofa majority of the members.

A majority shall be the relative majority of the votingmembers.If there should be only two part owners, in case ofdisagreement the vote of the member having thelargest interest shall be decisive. If the interests areequal, it shall be decided by lot.The representation of the smallest part in theownership shall have one vote; and proportionately theother part owners as many votes as they have partsequal to the smallest one. aisadcA vessel can not be detained, attached or levied uponexecution in her entirety for the private debts of a partowner, but the proceedings shall be limited to theinterest the debtor may have in the vessel, without

interfering with her navigation.ARTICLE 590. The owners of a vessel shall be civillyliable in the proportion of their contribution to thecommon fund, for the results of the acts of the captain,referred to in Article 587.Each part owner may exempt himself from this liabilityby the abandonment before a notary of the part of thevessel belonging to him.ARTICLE 591. All the part owners shall be liable, inproportion to their respective ownership, for theexpenses of repairs to the vessel, and for otherexpenses which are incurred by virtue of a resolutionof the majority.

They shall likewise be liable in the same proportion fothe expenses of maintenance, equipment, andprovisioning of the vessel, necessary for navigation.ARTICLE 592. The resolutions of the majority withregard to the repair, equipment, and provisioning othe vessel in the port of departure shall bind themajority unless the partners in the minority renouncetheir participation therein, which must be acquired bythe other part owners after a judicial appraisement ofthe value of the portion or portions assigned.The resolutions of the majority relating to thedissolution of the association and sale of the vesseshall also be binding on the minority.The sale of the vessel must take place at a publicauction, subject to the provisions of the law of civiprocedure unless the part owners unanimously agreeotherwise, the right of option to purchase and towithdraw mentioned in Article 575 being alwaysreserved in favor of said part owners.ARTICLE 593. The owners of a vessel shall havepreference in her charter to other persons, offeringequal conditions and price. If two or more of the formershould claim said right the one having greater interestshall be preferred, and should they have an equa

interest it shall be decided by lot.ARTICLE 594. The part owners shall elect the managerwho is to represent them in the capacity of agent.The appointment of director or agent shall berevocable at the will of the members.ARTICLE 595. The agent, be he at the same time anowner of a vessel or a manager for an owner or for anassociation of co-owners, must be qualified to tradeand must be recorded in the merchant's registry of theprovince.The agent shall represent the ownership of the vesseland may in his own name and in such capacity takejudicial and extrajudicial steps in all that relates tocommerce.ARTICLE 596. The agent may discharge the duties o

captain of the vessel, subject, in every case, to theprovisions contained in Article 609.If two or more co-owners request the position ocaptain, the disagreement shall be decided by a voteof the members; and if the vote should result in a tiethe position shall be given to the part owner having thelarger interest in the vessel.If the interest of the petitioners should be the sameand there should be a tie, the matter shall be decidedby lot.ARTICLE 597. The agent shall select and come to anagreement with the captain, and shall contract in thename of the owners, who shall be bound in all thatrefers to repairs, details of equipment, armament

provisions, fuel, and freight of the vessel, and, ingeneral, in all that relates to the requirements onavigation.ARTICLE 598. The agent can not order a new voyagenor make contracts for a new charter, nor insure thevessel, without the authority of her owner or by virtueof a resolution of the majority of the co-owners, unlessthese privileges were granted him in the certificate ofhis appointment. cdasiaIf he should insure the vessel without authority thereforhe shall be secondarily liable for the solvency of theunderwriter.ARTICLE 599. The managing agent of an associationshall give his co-owners an account of the results o


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each voyage of the vessel, without prejudice to alwayshaving the books and correspondence relating to thevessel and to its voyages at the disposal of the same.ARTICLE 600. After the account of the managing agenthas been approved by a relative majority, the co-owners shall satisfy the expenses in proportion to theirinterest, without prejudice to the civil or criminalactions which the minority may deem fit to instituteafterwards.In order to enforce the payment, the managing agentshall have a right of action to secure execution, whichshall be instituted by virtue of a resolution of themajority, and without further proceedings than theacknowledgment of the signatures of the persons whovoted the resolution.ARTICLE 601. Should there be any profits, the co-owners may demand of the managing agent theamount due them, by means of an executory actionwithout further requisites than the acknowledgment ofthe signatures of the instrument approving theaccount.ARTICLE 602. The agent shall indemnify the captain forall the expenses he may have incurred from his ownfunds or from those of other persons, for the benefit ofthe vessel.

ARTICLE 603. Before a vessel goes out to sea the agentshall have at his discretion, a right to discharge thecaptain and members of the crew whose contract didnot state a definite period nor a definite voyage,paying them the salaries earned according to theircontracts, and without any indemnity whatsoever,unless there is a special and specific agreement inrespect thereto.ARTICLE 604. If the captain or any other member of thecrew should be discharged during the voyage, theyshall receive their salary until the return to the placewhere the contract was made, unless there are goodreasons for the discharge, all in accordance withArticles 636 et seq. of this Code.ARTICLE 605. If the contracts of the captain and

members of the crew with the agent should be for adefinite period or voyage, they can not be dischargeduntil the fulfillment of their contracts, except forreasons of insubordination in serious matters, robbery,theft, habitual drunkenness, and damage caused to thevessel or to its cargo by malice or manifest or provennegligence.ARTICLE 606. If the captain should be a part owner inthe vessel, he can not be discharged without the agentreturning him the amount of his interest therein, which,in the absence of an agreement between the parties,shall be appraised by experts appointed in the mannerestablished in the law of civil procedure.ARTICLE 607. If the captain who is a part owner should

have obtained the command of the vessel by virtue ofa special agreement contained in the articles of co-partnership, he can not be deprived thereof except forthe reasons mentioned in Article 605.ARTICLE 608. In case of the voluntary sale of thevessel, all contracts between the agent and captainshall terminate, the right to proper indemnity beingreserved in favor of the captain, according to theagreements made with the agent.They vessel sold shall remain subject to the security ofthe payment of said indemnity if, after the actionagainst the vendor has been instituted, the lattershould be insolvent.

SECTION II

Captains and Masters of VesselsARTICLE 609. Captains and masters of vessels must beSpaniards * having legal capacity to bind themselves inaccordance with this Code, and must prove that theyhave the skill, capacity, and qualifications required tocommand and direct the vessel, as established bymarine laws, ordinances, or regulations, or by those ofnavigation, and that they are not disqualified accordingto the same for the discharge of the duties of thatposition. cdtIf the owner of a vessel desires to be the captainthereof and does not have the legal qualificationstherefor, he shall limit himself to the financiaadministration of the vessel, and shall intrust henavigation to a person possessing the qualificationsrequired by said ordinances and regulations.ARTICLE 610. The following powers are inherent in theposition of captain or master of a vessel:

1. To appoint or make contracts withthe crew in the absence ofthe agent and propose saidcrew, should said agent bepresent; but the agent shallnot be permitted to employany member against the

captain's express refusal.2. To command the crew and direct

the vessel to the port of itsdestination, in accordancewith the instructions he mayhave received from theagent.

3. To impose, in accordance with theagreements and the laws andregulations of the merchantsmarine, on board the vessel,correctional punishmentupon those who do notcomply with his orders orwho conduct themselves

against discipline, holding apreliminary investigation onthe crimes committed onboard the vessel on the highseas, which shall be turnedover to the authorities, whoare to take cognizancethereof, at the first porttouched.

4. To make contracts for the charterof the vessel in the absenceof the agent or of herconsignee, acting inaccordance with the

instructions received andprotecting the interests ofthe owner most carefully.

5. To adopt all the measures whichmay be necessary to keepthe vessel well supplied andequipped, purchasing for thepurpose all that may benecessary, provided there isno time to requestinstructions of the agent.

6. To make, in similar urgent casesand on a voyage, the repairsto the hull and engines of the


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vessel and to her rigging andequipment which areabsolutely necessary in orderfor her to be able to continueand conclude her voyage; butif she should arrive at a pointwhere there is a consignee ofthe vessel, he shall act inconcurrence with the latter.

ARTICLE 611. In order to comply with the obligationsmentioned in the foregoing article, the captain, whenhe has no funds and does not expect to receive anyfrom the agent, shall procure the same in thesuccessive order stated below:

1. By requesting said funds of theconsignees orcorrespondents of a vessel.

2. By applying to the consignees ofthe cargo or to the personsinterested therein.

3. By drawing on the agent.4. By borrowing the amount required

by means of a bottomrybond.

5. By selling a sufficient amount of

the cargo to cover theamount absolutely necessaryto repair the vessel, and toequip her to pursue thevoyage. cd

In the two latter cases he must apply to the judicialauthority of the port, if in Spain * and to the Spanish *

consul, if in a foreign country; and where there shouldbe none, to the local authority, proceeding inaccordance with the prescriptions of Article 583, andwith the provisions of the law of civil procedure.ARTICLE 612. The following obligations are inherent inthe office of captain:

1. To have on board before startingon a voyage a detailed

inventory of the hull,engines, rigging, tackle,stores, and other equipmentsof the vessel; the navigationcertificate; the roll of thepersons who make up thecrew of the vessel, and thecontracts entered into withthe crew; the list of passengers; the healthcertificate; the certificate ofthe registry proving theownership of the vessel, andall the obligations which

encumber the same up tothat date; the charters orauthenticated copies thereof;the invoices or manifest ofthe cargo, and theinstrument of the expert visitor inspection, should it havebeen made at the port ofdeparture.

2. To have a copy of this Code onboard.

3. To have three folioed and stampedbooks, placing at thebeginning of each one a note

of the number of folios itcontains, signed by themaritime official, and in hisabsence by the competentauthority.

In the first book, which shall be called "log book," heshall enter every day the condition of the atmosphere,the prevailing winds, the course sailed, the riggingcarried, the horsepower of the engines, the distancecovered, the maneuvers executed, and other incidentsof navigation. He shall also enter the damage sufferedby the vessel in her hull, engines, rigging, and tackleno matter what is its cause, as well as theimperfections and averages of the cargo, and theeffects and consequence of the jettison, should therebe any; and in cases of grave resolutions which requirethe advice or a meeting of the officers of the vessel, oreven of the passengers and crew, he shall record thedecision adopted. For the informations indicated heshall make use of the binnacle book, and of the steamor engine book kept by the engineer.In the second book, called the "accounting book," heshall enter all the amounts collected and paid for theaccount of the vessel, entering specifically article by

article, the sources of the collection, and the amountsinvested in provisions, repairs, acquisition of rigging ogoods, fuel, outfits, wages, and all other expenses. Heshall furthermore enter therein a list of all themembers of the crew, stating their domiciles, theiwages and salaries, and the amounts they may havereceived on account, either directly or by delivery totheir families.In the third book, called "freight book," he shall recordthe entry and exit of all the goods, stating their marksand packages, names of the shippers and of theconsignees, ports of loading and unloading, and thefreight earned. In the same book he shall record thenames and places of sailing of the passengers and thenumber of packages of which their baggage consists

and the price of the passage.4. To make, before receiving the freight, with theofficers of the crew, and the two experts, if required bythe shippers and passengers, an examination of thevessel, in order to ascertain whether she is watertight,and whether the rigging and engines are in goodcondition; and if she has the equipment required fogood navigation, preserving a certificate of thememorandum of this inspection, signed by all thepersons who may have taken part therein, under theirliability.The experts shall be appointed one by the captain othe vessel and the other one by the persons whorequest the examination, and in case of disagreement

a third shall be appointed by the marine authority ofthe port.5. To remain constantly on board the vessel with thecrew during the time the freight is taken on board andcarefully watch the stowage thereof; not to consent toany merchandise or goods of a dangerous character tobe taken on, such as inflammable or explosivesubstances, without the precautions which arerecommended for their packing, management andisolation; not to permit that any freight be carried ondeck which by reason of its disposition, volume, oweight makes the work of the sailors difficult, andwhich might endanger the safety of the vessel; and ifon account of the nature of the merchandise, the


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special character of the shipment, and principally thefavorable season it takes place, he allows merchandiseto be carried on deck, he must hear the opinion of theofficers of the vessel, and have the consent of theshippers and of the agent.6. To demand a pilot at the expense of the vesselwhenever required by navigation, and principally whena port, canal, or river, or a roadstead or anchoringplace is to be entered with which neither he, theofficers nor the crew are acquainted.7. To be on deck at the time of sighting land and totake command on entering and leaving ports, canals,roadsteads, and rivers, unless there is a pilot on boarddischarging his duties. He shall not spend the nightaway from the vessel except for serious causes or byreason of official business. cdtai8. To present himself, when making a port in distress,to the maritime authority if in Spain * and to theSpanish * consul if in a foreign country, before twenty-four hours have elapsed, and make a statement of thename, registry, and port of departure of the vessel, ofits cargo, and reason of arrival, which declaration shallbe vised by the authority or by the consul if afterexamining the same it is found to be acceptable, givingthe captain the proper certificate in order to show his

arrival under stress and the reasons therefor. In theabsence of marine officials or of the consul, thedeclaration must be made before the local authority.9. To take the steps necessary before the competentauthority in order to enter in the certificate of theCommercial Registry of the vessel the obligationswhich he may contract in accordance with Article 583.10. To put in a safe place and keep all the papers andbelongings of any members of the crew who might dieon the vessel, drawing up a detailed inventory, in thepresence of passengers as witnesses, and, in theirabsence, of members of the crew.11. To conduct himself according to the rules andprecepts contained in the instructions of the agent,being liable for all that he may do in violation thereof.

12. To give an account to the agent from the portwhere the vessel arrives, of the reason thereof, takingadvantage of the semaphore, telegraph, mail, etc.,according to the cases; notify him the freight he mayhave received, stating the name and domicile of theshippers, freight earned, and amounts borrowed onbottomry bond, advise him of his departure, and givehim any information and data which may be of interest.13. To observe the rules on the situation of lights andevolutions to prevent collisions.14. To remain on board in case of danger to the vessel,until all hope to save her is lost, and beforeabandoning her to hear the officers of the crew,abiding by the decision of the majority; and if he

should have to take a boat he shall take with him,before anything else, the books and papers, and thenthe articles of most value, being obliged to prove incase of the loss of the books and papers that he did allhe could to save them.15. In case of wreck he shall make the proper protestin due form at the first port reached, before thecompetent authority or the Spanish * consul, withintwenty-four hours, stating therein all the incidents ofthe wreck, in accordance with case 8 of this article.16. To comply with the obligations imposed by the lawsand rules of navigation, customs, health, and others.ARTICLE 613. A captain who navigates for freight incommon or on shares can not make any transaction for

his exclusive account, and should he do so the profitshall belong to the other persons in interest, and thelosses shall be for his own exclusive account.ARTICLE 614. A captain who, having made anagreement to make a voyage, should not fulfill hisobligation, without being prevented by an accidentcase or by force majeure, shall pay for all the losses hisaction may cause, without prejudice to criminapenalties which may be proper.ARTICLE 615. Without the consent of the agent, thecaptain can not have himself substituted by anotheperson; and should he do so, besides being liable for althe acts of the substitute and bound to the indemnitiesmentioned in the foregoing article, the substitute aswell as the captain may be discharged by the agent.ARTICLE 616. If the provisions and fuel of the vesseare consumed before arriving at the port odestination, the captain shall decide, with the consentof the officers of the same, to make the nearest port toget a supply of either; but if there are persons on boardwho have provisions of their own he may force them toturn said provisions over for the common consumptionof all persons on board, paying the price thereofimmediately, or at the latest, at the first port reached.ARTICLE 617. The captain can not contract loans on

respondentia, and should he do so the contracts shalbe void.Neither can he borrow money on bottomry for his owntransactions, except on the portion of the vessel heowns, provided no money has been previouslyborrowed on the whole vessel, and provided there doesnot exist any other kind of lien or obligation thereon.When he is permitted to do so, he must necessarilystate what interest he has in the vessel.In case of violation of this article the principal, interestand costs shall be charged to the private account ofthe captain, and the agent may furthermore have theright to discharge him.ARTICLE 618. The captain shall be civilly liable to theagent, 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 his cargo byreason of want of skill ornegligence on his part. If amisdemeanor or crime hasbeen committed he shall beliable in accordance with thePenal Code. cda

2. For all the thefts committed by thecrew, reserving his right ofaction against the guiltyparties.

3. For the losses, fines, and

confiscations imposed anaccount of violation of thelaws and regulations ofcustoms, police, health, andnavigation.

4. For the losses and damagescaused by mutinies on boardthe vessel, or by reason offaults committed by the crewin the service and defense ofthe same, if he does notprove that he made full useof his authority to prevent oravoid them.


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5. For those arising by reason of anundue use of powers andnon-fulfillment of theobligations which are his inaccordance with Articles 610and 612.

6. For those arising by reason of hisgoing out of his course ortaking a course which heshould not have takenwithout sufficient cause, inthe opinion of the officers ofthe vessel, at a meeting withthe shippers or supercargoeswho may be on board.

No exception whatsoever shallexempt him from thisobligation.

7. For those arising by reason of hisvoluntarily entering a portother than his destination,with the exception of thecases or without theformalities referred to inArticle 612.

8. For those arising by reason of the

non-observance of theprovisions contained in theregulations for lights andevolutions for the purpose ofpreventing collisions.

ARTICLE 619. The captain shall be liable for the cargofrom the time it is turned over to him at the dock, orafloat alongside the ship, at the port of loading until hedelivers it on the shores or on the discharging wharf, ofthe port of unloading unless the contrary has beenexpressly agreed upon.ARTICLE 620. The captain shall not be liable for thedamages caused to the vessel or to the cargo by

reason of force majeure; but he shall always be so no agreement to the contrary being valid for thosearising through his own fault.Neither shall he be personally liable for the obligationshe may have contracted for the repair, equipment, andprovisioning of the vessel, which shall be incurred bythe agent, unless the former has expressly boundhimself personally or signed a draft or promissory notein his name.ARTICLE 621. A captain who borrows money onbottomry, or who pledges or sells merchandise orprovisions in other cases and without the formalitiesprescribed in this Code, shall be liable for the principle,interest, and costs, and shall indemnify for the

damages he may cause.The captain who commits fraud in his accounts shallreimburse the amount defrauded, and shall be subjectto the provisions contained in the Penal Code.ARTICLE 622. If when on a voyage the captain shouldreceive news of the appearance of privateers or men ofwar against his flag, he shall be obliged to make thenearest neutral port, inform his agent or shippers, andawait an occasion to sail under convoy or until thedanger is over or to receive final orders from the agentor shippers.ARTICLE 623. If he should find himself being attackedby a privateer and after having done all that waspossible to avoid the encounter and have resisted the

delivery of the equipment of the vessel or of its cargothey should be forcibly taken away from him, or heshould be obliged to deliver them, he shall make anentry in his freight book and shall prove the fact beforethe competent authority at the first port he touchescdasiaAfter the force majeure has been proven, he shall beexempted from liability.ARTICLE 624. A captain whose vessel has gone througha hurricane or who believes that the cargo has suffereddamages or averages, shall make a protest thereonbefore the competent authority at the first port hetouches within the twenty-four hours following hisarrival, and shall ratify it within the same period whenhe arrives at the place of his destination, immediatelyproceeding with the proof of the facts, it not beingpermitted to open the hatches until this has beendone.The captain shall proceed in the same manner if, thevessel having been wrecked, he is saved alone or withpart of his crew, in which case he shall appear beforethe nearest authority, and make a sworn statement ofthe facts.The authority or the consul abroad shall verify the saidfacts, receiving a sworn statement of the members o

the crew and passengers who may have been savedand taking the other steps which may assist in arrivingat the facts, drafting a certificate of the result of theproceedings in the log book and in that of the sailingmate, and shall deliver the original records of theproceedings to the captain, stamped and folioed, witha memorandum of the folios, which he must rubricatefor their presentation to the judge or court of the portof destination.The statement of the captain shall be believed if it is inaccordance with those of the crew and passengers; ithey disagree, the latter shall be accepted, unlessthere is proof to the contrary.ARTICLE 625. The captain, under his personal liabilityas soon as he arrives at the port of destination, obtains

the necessary permission from the health and customsofficers and fulfills the other formalities required by theregulations of the administration, shall turn over thecargo, without any defalcation, to the consignees, andin a proper case, the vessel, rigging, and freights to theagent.If, by reason of the absence of the consignee or onaccount of the nonappearance of a legal holder of theinvoices, the captain does not know to whom he is tomake the legal delivery of the cargo, he shall place itat the disposal of the proper judge or court oauthority, in order that he may decide with regard toits deposit, preservation, and custody.

SECTION III

Officers and Crews of VesselsARTICLE 626. In order to be a sailing mate it shall benecessary:

1. To have the conditions required bythe marine or navigation lawsor regulations.

2. Not to be disqualified inaccordance therewith for thedischarge of the position.

ARTICLE 627. The sailing mate, as the second chief othe vessel and unless the agent orders otherwise, shaltake the place of the captain in cases of absencesickness, or death, and shall then assume all hispowers, obligations, and responsibilities.


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ARTICLE 628. The sailing mate must supply himselfwith charts of the waters which are to be navigated,with the maps and quadrants or sextants which are inuse and which are necessary for the discharge of hisduties, being liable for the accidents which may ariseby reason of his fault in this matter.ARTICLE 629. The sailing mate shall personally andspecially keep a book folioed and stamped on all itspages, called the "binnacle book", with a memorandumat the beginning stating the number of folios itcontains, signed by the competent authority, and shallenter therein daily the distance and course travelled,the variations of the needle, the leeway, the directionand force of the wind, the condition of the atmosphereand of the sea, the rigging set, the latitude andlongitude observed, the number of furnaces fired, thesteam pressure, the number of revolutions, and underthe name of "incidents" the revolutions made, themeetings with other vessels, and all the particulars andaccidents which may occur during the voyage.ARTICLE 630. In order to change the course and to takethe one most convenient for a good voyage of thevessel, the sailing mate shall come to an agreementwith the captain. If the latter should object, the sailingmate shall make the remarks he may consider

necessary in the presence of the other officers of thevessel. If the captain should still insist on his objection,the sailing mate shall make the proper protest, signedby him and by another one of the officers in the logbook, and shall obey the captain, who shall be the onlyone liable for the consequences of his order.ARTICLE 631. The sailing mate shall be liable for all thedamages suffered by the vessel and cargo by reason ofhis negligence or want of skill, without prejudice to thecriminal liability which may arise, if a felony ormisdemeanor were committed. aisadcARTICLE 632. It shall be the duty of the second mate:

1. To watch over the preservation ofthe hull, and rigging of thevessel, and to take charge of

the tackle and equipmentwhich make up her outfit,suggesting to the captain therepairs necessary and thereplacement of the goodsand implements which arerendered useless and lost.

2. To take care that the cargo is wellarranged, keeping the vesselalways ready for evolutions.

3. To preserve order, discipline, andgood service among thecrew, requesting thenecessary orders and

instructions of the captain,and quickly informing him ofany occurrence in which theintervention of his authoritymay be necessary.

4. To assign to each sailor the workhe is to do on board, inaccordance with theinstructions received, andsee that it is exactly andcarefully carried out.

5. To take charge by inventory of therigging and all theequipments of the vessel, if it

should be laid up, unless theagent has ordered otherwise.

With

transpo codals 2

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