June - De La Salle Lipa

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Co Untian, Crescencio P., Jr. Tax digest: a bar
reviewer on National Internal. Revenue taxes,
local and real property taxes, tariff and customs
duties. Manila: Rex ...

DLSU-Manila : Library : Taxation - De La

Salle University
xsite.dlsu.edu.ph Library Pathfinder Law
Article 349 A contract of transportation by land or water ways of any kind
shall be considered commercial:

1.

When it has for its object merchandise or any Article of

commerce.

2.

When, whatever its object may be, the carrier is a merchant or is

habitually engaged in transportation for the public.
Article 350 The shipper as well as the carrier of merchandise or goods
may mutually demand that a bill of lading be made, stating:

1.
2.
3.
4.
5.
6.
7.
8.
9.

The name, surname and residence of the shipper.

The name, surname and residence of the carrier.
The name, surname and residence of the person to whom or to
whose order the goods are to be sent or whether they are to be
delivered to the bearer of said bill.
The description of the goods, with a statement of their kind, of
their weight, and of the external marks or signs of the packages
in which they are contained.
The cost of transportation.
The date on which shipment is made.
The place of delivery to the carrier.
The place and the time at which delivery to the consignee shall
be made.

The indemnity to be paid by the carrier in case of delay, if there

should be any agreement on this matter.
Article 351 In transportation made by railroads or other enterprises
subject to regulation rate and time schedules, it shall be sufficient for the
bills of lading or the declaration of shipment furnished by the shipper to
refer, with respect to the cost, time and special conditions of the carriage,
to the schedules and regulations the application of which he requests; and
if the shipper does not determine the schedule, the carrier must apply the
rate of those which appear to be the lowest, with the conditions inherent
thereto, always including a statement or reference to in the bill of lading
which he delivers to the shipper.
Article 352 The bills of lading, or tickets in cases of transportation of
passengers, may be diverse, some for persons and others for baggage; but
all of them shall bear the name of the carrier, the date of shipment, the
points of departure and arrival, the cost, and, with respect to the baggage,
the number and weight of the packages, with such other manifestations
which may be considered necessary for their easy identification.
Article 353 The legal evidence of the contract between the shipper and
the carrier shall be the bills of lading, by the contents of which the disputes
which may arise regarding their execution and performance shall be
decided, no exceptions being admissible other than those of falsity and
material error in the drafting.
After the contract has been complied with, the bill of lading which the
carrier has issued shall be returned to him, and by virtue of the exchange
of this title with the thing transported, the respective obligations and
actions shall be considered cancelled, unless in the same act the claim
which the parties may wish to reserve be reduced to writing, with the
exception of that provided for in Article 366.
In case the consignee, upon receiving the goods, cannot return the bill of
lading subscribed by the carrier, because of its loss or of any other cause,
he must give the latter a receipt for the goods delivered, this receipt
producing the same effects as the return of the bill of lading.
Article 354 In the absence of a bill of lading, disputes shall be determined
by the legal proofs which the parties may present in support of their

respective claims, according to the general provisions established in this

Code for commercial contracts.
Article 355 The responsibility of the carrier shall commence from the
moment he receives the merchandise, personally or through a person
charged for the purpose, at the place indicated for receiving them.
Article 356 Carriers may refuse packages which appear unfit for
transportation; and if the carriage is to be made by railway, and the
shipment is insisted upon, the company shall transport them, being
exempt from all responsibility if its objections, is made to appear in the bill
of lading.
Article 357 If by reason of well-founded suspicion of falsity in the
declaration as to the contents of a package the carrier should decide to
examine it, he shall proceed with his investigation in the presence of
witnesses, with the shipper or consignee in attendance.
If the shipper or consignee who has to be cited does not attend, the
examination shall be made before a notary, who shall prepare a
memorandum of the result of the investigation, for such purposes as may
be proper.
If the declaration of the shipper should be true, the expense occasioned by
the examination and that of carefully repacking the packages shall be for
the account of the carrier and in a contrary case for the account of the
shipper.
Article 358 If there is no period fixed for the delivery of the goods the
carrier shall be bound to forward them in the first shipment of the same or
similar goods which he may make point where he must deliver them; and
should he not do so, the damages caused by the delay should be for his
account.
Article 359 If there is an agreement between the shipper and the carrier
as to the road over which the conveyance is to be made, the carrier may
not change the route, unless it be by reason of force majeure; and should
he do so without this cause, he shall be liable for all the losses which the
goods he transports may suffer from any other cause, beside paying the
sum which may have been stipulated for such case.
When on account of said cause of force majeure, the carrier had to take
another route which produced an increase in transportation charges, he
shall be reimbursed for such increase upon formal proof thereof.
Article 360 The shipper, without changing the place where the delivery is
to be made, may change the consignment of the goods which he delivered
to the carrier, provided that at the time of ordering the change of
consignee the bill of lading signed by the carrier, if one has been issued,
be returned to him, in exchange for another wherein the novation of the
contract appears.
The expenses which this change of consignment occasions shall be for the
account of the shipper.
Article 361 [The merchandise shall be transported at the risk and venture
of the shipper, if the contrary has not been expressly stipulated.
As a consequence, all the losses and deteriorations which the goods may
suffer during the transportation by reason of fortuitous event, force
majeure, or the inherent nature and defect of the goods, shall be for the
account and risk of the shipper.
Proof of these accidents is incumbent upon the carrier.]
Article 362 Nevertheless, the carrier shall be liable for the losses and
damages resulting from the causes mentioned in the preceding Article if it
is proved, as against him, that they arose through his negligence or by
reason of his having failed to take the precautions which usage has
established among careful persons, unless the shipper has committed
fraud in the bill of lading, representing the goods to be of a kind or quality
different from what they really were.
If, notwithstanding the precautions referred to in this article, the goods
transported run the risk of being lost, on account of their nature or by
reason of unavoidable accident, there being no time for their owners to
dispose of them, the carrier may proceed to sell them, placing them for
this purpose at the disposal of the judicial authority or of the officials
designated by special provisions.
Article 363 Outside of the cases mentioned in the second paragraph of
Article 361, the carrier shall be obliged to deliver the goods shipped in the
same condition in which, according to the bill of lading, they were found at
the time they were received, without any damage or impairment, and
failing to do so, to pay the value which those not delivered may have at
the point and at the time at which their delivery should have been made.
If those not delivered form part of the goods transported, the consignee
may refuse to receive the latter, when he proves that he cannot make use
of them independently of the others.
Article 364 If the effect of the damage referred to in Article 361 is merely
a diminution in the value of the goods, the obligation of the carrier shall be
reduced to the payment of the amount which, in the judgment of experts,
constitutes such difference in value.
Article 365 If, in consequence of the damage, the goods are rendered
useless for sale and consumption for the purposes for which they are
properly destined, the consignee shall not be bound to receive them, and
he may have them in the hands of the carrier, demanding of the latter
their value at the current price on that day.
If among the damaged goods there should be some pieces in good
condition and without any defect, the foregoing provision shall be
applicable with respect to those damaged and the consignee shall receive
those which are sound, this segregation to be made by distinct and
separate pieces and without dividing a single object, unless the consignee

proves the impossibility of conveniently making use of them in this form.

The same rule shall be applied to merchandise in bales or packages,
separating those parcels which appear sound.
Article 366 Within the twenty-four hours following the receipt of the
merchandise, the claim against the carrier for damage or average be found
therein upon opening the packages, may be made, provided that the
indications of the damage or average which gives rise to the claim cannot
be ascertained from the outside part of such packages, in which case the
claim shall be admitted only at the time of receipt.
After the periods mentioned have elapsed, or the transportation charges
have been paid, no claim shall be admitted against the carrier with regard
to the condition in which the goods transported were delivered.
Article 367 If doubts and disputes should arise between the consignee
and the carrier with respect to the condition of the goods transported at
the time their delivery to the former is made, the goods shall be examined
by experts appointed by the parties, and, in case of disagreement, by a
third one appointed by the judicial authority, the results to be reduced to
writing; and if the interested parties should not agree with the expert
opinion and they do not settle their differences, the merchandise shall be
deposited in a safe warehouse by order of the judicial authority, and they
shall exercise their rights in the manner that may be proper.
Article 368 The carrier must deliver to the consignee, without any delay
or obstruction, the goods which he may have received, by the mere fact of
being named in the bill of lading to receive them; and if he does not do so,
he shall be liable for the damages which may be caused thereby.
Article 369 If the consignee cannot be found at the residence indicated in
the bill of lading, or if he refuses to pay the transportation charges and
expenses, or if he refuses to receive the goods, the municipal judge, where
there is none of the first instance, shall provide for their deposit at the
disposal of the shipper, this deposit producing all the effects of delivery
without prejudice to third parties with a better right.
Article 370 If a period has been fixed for the delivery of the goods, it
must be made within such time, and, for failure to do so, the carrier shall
pay the indemnity stipulated in the bill of lading, neither the shipper nor
the consignee being entitled to anything else.
If no indemnity has been stipulated and the delay exceeds the time fixed in
the bill of lading, the carrier shall be liable for the damages which the
delay may have caused.
Article 371 In case of delay through the fault of the carrier, referred to in
the preceding articles, the consignee may leave the goods transported in
the hands of the former, advising him thereof in writing before their arrival
at the point of destination.
When this abandonment takes place, the carrier shall pay the full value of
the goods as if they had been lost or mislaid.
If the abandonment is not made, the indemnification for losses and
damages by reason of the delay cannot exceed the current price which the
goods transported would have had on the day and at the place in which
they should have been delivered; this same rule is to be observed in all
other cases in which this indemnity may be due.
Article 372 The value of the goods which the carrier must pay in cases if
loss or misplacement shall be determined in accordance with that declared
in the bill of lading, the shipper not being allowed to present proof that
among the goods declared therein there were articles of greater value and
money.
Horses, vehicles, vessels, equipment and all other principal and accessory
means of transportation shall be especially bound in favor of the shipper,

although with respect to railroads said liability shall be subordinated to the

provisions of the laws of concession with respect to the property, and to
what this Code established as to the manner and form of effecting seizures
and attachments against said companies.
Article 373 The carrier who makes the delivery of the merchandise to the
consignee by virtue of combined agreements or services with other
carriers shall assume the obligations of those who preceded him in the
conveyance, reserving his right to proceed against the latter if he was not
the party directly responsible for the fault which gave rise to the claim of
the shipper or consignee.
The carrier who makes the delivery shall likewise acquire all the actions
and rights of those who preceded him in the conveyance.
The shipper and the consignee shall have an immediate right of action
against the carrier who executed the transportation contract, or against
the other carriers who may have received the goods transported without
reservation.
However, the reservation made by the latter shall not relieve them from
the responsibilities which they may have incurred by their own acts.
Article 374 The consignees to whom the shipment was made may not
defer the payment of the expenses and transportation charges of the
goods they receive after the lapse of twenty-four hours following their
delivery; and in case of delay in this payment, the carrier may demand the
judicial sale of the goods transported in an amount necessary to cover the
cost of transportation and the expenses incurred.
Article 375 The goods transported shall be especially bound to answer for
the cost of transportation and for the expenses and fees incurred for them
during their conveyance and until the moment of their delivery.
This special right shall prescribe eight days after the delivery has been
made, and once prescribed, the carrier shall have no other action than that
corresponding to him as an ordinary creditor.
Article 376 The preference of the carrier to the payment of what is owed
him for the transportation and expenses of the goods delivered to the
consignee shall not be cut off by the bankruptcy of the latter, provided it is
claimed within the eight days mentioned in the preceding article.
Article 377 The carrier shall be liable for all the consequences which may
arise from his failure to comply with the formalities prescribed by the laws
and regulations of the public administration, during the whole course of
the trip and upon arrival at the point of destination, except when his failure
arises from having been led into error by falsehood on the part of the
shipper in the declaration of the merchandise. If the carrier has acted by
virtue of a formal order of the shipper or consignee of the merchandise,
both shall become responsible.
Article 378 Agents for transportation shall be obliged to keep a special
registry, with the formalities required by Article 36, in which all the goods
the transportation of which is undertaken shall be entered in consecutive
order of number and dates, with a statement of the circumstances required
in Article 350 and others following for the respective bills of lading.
Article 379 The provisions contained in Articles 349 and following shall be
understood as equally applicable to those who, although they do not
personally effect the transportation of the merchandise, contract to do so
through others, either as contractors for a particular and definite
operation, or as agents for transportations and conveyances.
In either case they shall be subrogated in the place of the carriers
themselves, with respect to the obligations and responsibility of the latter,
as well as with regard to their rights.