Code of Commerce

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TITLE SEVEN COMMERCIAL CONTRACTS FOR TRANSPORTATION OVERLAND SECTION 349. A contract of transportation by land or water ways of any kind shall be considered coercial! ". #hen it has for its ob$ect erchandise or any Section of coerce. %. #hen& whate'er its ob$ect ay be& the carrier is a erchant or habit(ally en)a)ed in transportation for the p(blic. SECTION 3*+. The shipper as well as the carrier of erchandise or )oods ay (t(ally deand that a bill of ladin) be ade& statin)! ". The nae& s(rnae and residence of the shipper. %. The nae& s(rnae and residence of the carrier. 3. The nae& s(rnae and residence of the person to who or to whose order the )oods are to be sent or whether they are to be deli'ered to the bearer of said bill. 4. The description of the )oods& with a stateent of their kind& of their wei)ht& and of the e,ternal arks or si)ns of the packa)es in which they are contained. *. The cost of transportation. -. The date on which shipent is ade. . The place of deli'ery to the carrier. /. The place and the tie at which deli'ery to the consi)nee shall be ade. 9. The indenity to be paid by the carrier in case of delay& if there sho(ld b any a)reeent on this atter.

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Code of Commerce

Transcript of Code of Commerce

TITLE SEVENCOMMERCIAL CONTRACTS FOR TRANSPORTATION OVERLAND

SECTION 349. A contract of transportation by land or water ways of any kind shall beconsidered commercial:

1. When it has for its object merchandise or any Section of commerce.2. When, whatever its object may be, the carrier is a merchant or is habitually engaged in transportation for the public.

SECTION 350. The shipper as well as the carrier of merchandise or goods may mutually demand that a bill of lading be made, stating:1. The name, surname and residence of the shipper.2. The name, surname and residence of the carrier.3. 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.4. 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.5. The cost of transportation.6. The date on which shipment is made.7. The place of delivery to the carrier.8. The place and the time at which delivery to the consignee shall be made.9. The indemnity to be paid by the carrier in case of delay, if there should be any agreement on this matter.

SECTION 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.

SECTION 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.

SECTION 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 Section 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.SECTION 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.

SECTION 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.

SECTION 362. Nevertheless, the carrier shall be liable for the losses and damages resulting from the causes mentioned in the preceding Section 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 Section, 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.

SECTION 363. Outside of the cases mentioned in the second paragraph of Section 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.

SECTION 364. If the effect of the damage referred to in Section 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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.SECTION 371. In case of delay through the fault of the carrier, referred to in the preceding Sections, 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.

SECTION 372. The value of the goods which the carrier must pay in cases if loss or misplacement shall he 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 Sections 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.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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 Section.

SECTION 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.

SECTION 378. Agents for transportation shall be obliged to keep a special registry, with the formalities required by Section 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 Section 350 and others following for the respective bills of lading.

SECTION 379. The provisions contained in Sections 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.MARITIME COMMERCETITLE ONEVESSELS

SECTION 573. Merchant vessels constitute property which may be acquired and transferred by any of the means recognized by law. The acquisition of a vessel must appear in a written instrument, which shall not produce any effect with respect to third persons if not inscribed in the registry of vessels.

The ownership of a vessel shall likewise be acquired by possession in good faith, continued for three years, with a just title duly recorded.

In the absence of any of these requisites, continuous possession for ten years shall be necessary in order to acquire ownership.

A captain may not acquire by prescription the vessel of which he is in command.

SECTION 574. Builders of vessels may employ the materials and follow, with respect to their construction and rigging, the systems most suitable to their interests. Ship owners and seamen shall be subject to what the laws and regulations of the public administration on navigation, customs, health, safety of vessels, and other similar matters.

SECTION 575. Co-owners of vessels shall have the right of repurchase and redemption in sales made to strangers, but they may exercise the same only within the nine days following the inscription of the sale in the registry, and by depositing the price at the same time.

SECTION 576. In the sale of a vessel it shall always be understood as included the rigging, masts, stores and engine of a streamer appurtenant thereto, which at the time belongs to the vendor. The arms, munitions of war, provisions and fuel shall not be considered as included in the sale.

The vendor shall be under the obligation to deliver to the purchaser a certified copy of the record sheet of the vessel in the registry up to the date of the sale.

SECTION 577. If the alienation of the vessel should be made while it is on a voyage, the freightage which it earns from the time it receives its last cargo shall pertain entirely to the purchaser, and the payment of the crew and other persons who make up its complement for the same voyage shall be for his account.

If the sale is made after the vessel has arrived at the port of its destination, the freightage shall pertain to the vendor, and the payment of the crew and other individuals who make up its complement shall be for his account, unless the contrary is stipulated in either case.SECTION 578. If the vessel being on a voyage or in a foreign port, its owner or owners should voluntarily alienate it, either to Filipinos or to foreigners domiciled in the capital or in a port of another country, the bill of sale shall be executed before the consul of the Republic of the Philippines at the port where it terminates its voyage and said instrument shall produce no effect with respect to third personsif it is not inscribed in the registry of the consulate. The consul shall immediately forward a true copyof the instrument of purchase and sale of the vessel to the registry of vessels of the port where saidvessel is inscribed and registered.In every case the alienation of the vessel must be made to appear with a statement of whether thevendor receives its price in whole or in part, or whether he preserves in whole or in part any claim onsaid vessel. In case the sale is made to a Filipino, this fact shall be stated in the certificate of navigation.aisadcWhen a vessel, being on a voyage, shall be rendered useless for navigation, the captain shall apply tothe competent judge on court of the port of arrival, should it be in the Philippines; and should it be in aforeign country, to the consul of the Republic of the Philippines, should there be one, or, where there isnone, to the judge or court or to the local authority; and the consul, or the judge or court, shall order anexamination of the vessel to be made.If the consignee or the insurer should reside at said port, or should have representatives there, they mustbe cited in order that they may take part in the proceedings on behalf of whoever may be concerned.SECTION 579. After the damage to the vessel and the impossibility of her being repaired, inorder to continue the voyage had been shown, its sale at public auction shall be ordered, subject to thefollowing rules:1. The hull of the vessel, its rigging, engines, stores, and other Sections shall be appraised, aftermaking an inventory, said proceedings to be brought to the notice of the persons who may wish to takepart in the auction.2. The order or decree ordering the auction to be held shall be posted in the usual places, anannouncement thereof to be inserted in the Official Gazette and in two of the newspapers of the largestcirculation of the port where the auction is to be held, should there be any.The period which may be fixed for the auction shall not be less than twenty days.3. These announcements shall be repeated every ten days, and their publication shall be made toappear in the records.4. The auction shall be held on the day fixed, with the formalities prescribed in the common lawfor judicial sales.5. If the sale should take place while the vessel is in a foreign country, the special provisionsgoverning such cases shall be observed.SECTION 580. In all judicial sales of any vessel for the payment of creditors, the following shallhave preference in the order stated 21. The credit in favor of the public treasury proven by means of an official certificate of competentauthority.2. The judicial costs of the proceedings, according to an appraisement approved by the judge orcourt.3. The pilotage charges, tonnage dues, and the other sea or port charges, proven by means ofproper certificates of the officers intrusted with the collection thereof.4. The salaries of the depositaries and keepers of the vessel and any other expenses for itspreservation from the time of arrival at the port until the sale, which appear to have been paid or be dueby virtue of an account verified and approved by the judge or court. cdtai5. The rent of the warehouse where the rigging and stores of the vessel have been taken care of,according to contract.6. The salaries due the captain and crew during its last voyage, which shall be verified by meansof the liquidation to be made in view of the lists and of the books of account of the vessel, approved bythe chief of the Bureau of Merchant Marine, where there is one, and in his absence by the consul orjudge or court.7. The reimbursement for the goods of the freight which the captain may have sold in order torepair the vessel, provided that the sale has been ordered through a judicial proceedings held with theformalities required in such cases, and recorded in the certificate of registry of the vessel.8. The part of the price which has not been paid to the said vendor, the unpaid credits for materialsand labor in the construction of the vessel, when it has not navigated, and those arising from the repairand equipment of the vessels and from its provisioning with victuals and fuel during the last voyage.In order that the credits provided for in this subdivision may enjoy this preference, they must appear bycontracts recorded in the registry of vessels, or if they were contracted for the vessel while on a voyageand said vessel has not returned to the port where it is registered, they must be made with theauthorization required for such cases and annotated in the certificate of registration of the vessel. cdtai9. The amount borrowed on bottomry on the hull, keel, tackle, and stores of the vessel before itsdeparture, proven by means of the contract executed according to law and recorded in the registry ofvessels; those borrowed during the voyage with the authorization mentioned in the precedingsubdivision, satisfying the same requisites; and the insurance premium, proven by the insurance policyor a certificate taken from the books of the broker.10. The indemnity due the shipper for the value of the goods shipped which were not delivered tothe consignees, or for averages suffered for which the vessel is liable, provided that either appear in ajudicial or arbitration decision.SECTION 581. If the proceeds of the sale should not be sufficient to pay all the creditorsincluded in one number or grade, the residue shall be divided among them pro rata.SECTION 582. After the bill of the judicial sale at public auction has been executed andinscribed in the registry of vessels, all the other liabilities of the vessel in favor of the creditors shall beconsidered extinguished.But if the sale should have been voluntary and should have been made while the vessel was on avoyage, the creditors shall preserve their rights against the vessel until it returns to the port of herregistry, and three months after the inscription of the sale in the registry of vessel or the arrival.SECTION 583. If while on a voyage the captain should find it necessary to contract one or moreof the obligations mentioned in subdivisions 8 and 9 of Section 580, he shall apply to the judge or courtif he is in Philippine territory, and otherwise to the consul of the Republic of the Philippines, shouldthere be one, and, in his absence, to the judge or court or proper local authority, presenting thecertificate of the registration sheet treated of in Section 612 and the instruments proving the obligationcontracted.The judge or court, the consul, or the local authority, as the case may be, in view of the result of theproceedings instituted, shall make a temporary memorandum of their result in the certificate, in orderthat it may be recorded in the registry when the vessel returns to the port of its registry, or so that it canbe admitted as a legal and preferred obligation in case of sale before its return, by reason of the sale ofthe vessel on account of a declaration of unseaworthiness.The omission of this formality shall make the captain personally liable for the credits prejudiced on hisaccount.SECTION 584. The vessels subject to liability for the credits mentioned in Section 580 may beattached and judicially sold in the manner prescribed in Section 579, in the port in which they may befound, at the instance of any of the creditors; but if they should be loaded and ready to sail, theattachment may not be effected except for debts contracted to prepare and provision the vessel for thesame voyage, and even then the attachment shall be dissolved if any person interested in its sailingshould give a bond for the return of the vessel within the period fixed in the certificate of navigationbinding himself to pay the indebtedness insofar as it may be legal, should it fail to do so, even if thisfailure be due to fortuitous event.For debts of any other kind whatsoever not comprised within the said Section 580, the vessel may beattached only in the port of her registry.SECTION 585. For all purposes of law not modified or restricted by the provisions of this Code,vessels shall continue to be considered as personal property.TITLE TWOPERSONS WHO TAKE PART IN MARITIME COMMERCESECTION ONESHIPOWNERS AND SHIP AGENTSSECTION 586. The shipowner and the ship agent shall be civilly liable for the acts of the captainand for the obligations contracted by the latter to repair, equip, and provision the vessel, provided thecreditor proves that the amount claimed was invested for the benefit of the same.By ship agent is understood the person entrusted with provisioning or representing the vessel in the portin which it may be found.SECTION 587. The ship agent shall also be civilly liable for the indemnities in favor of thirdpersons which may arise from the conduct of the captain in the care of the goods which he loaded onthe vessel; but he may exempt himself therefrom by abandoning the vessel with all her equipments andthe freight it may have earned during the voyage.SECTION 588. Neither the shipowner nor the ship agent shall be liable for the obligationscontracted by the captain, if the latter exceeds the powers and privileges pertaining to him by reason ofhis position or conferred upon him by the former.Nevertheless, if the amounts claimed were invested for the benefit of the vessel, the responsibilitytherefor shall devolve upon its owner or agent.SECTION 589. If two or more persons should be part owners of a merchant vessel, a partnershipshall be presumed as established by the co-owners.This partnership shall be governed by the resolutions of the majority of the members.If the part owners should not be more than two, the disagreement of views, if any, shall be decided bythe vote of the member having the largest interest. If the interests are equal, it should be decided by lot.The person having the smallest share in the ownership shall have one vote; and proportionately theother part owners as many votes as they have parts equal to the smallest one. aisadcA vessel may not be detained, attached or levied upon in execution in its entirety, for the private debtsof a part owner, but the proceedings shall be limited to the interest which the debtor may have in thevessel, without interfering with the navigation.SECTION 590. The co-owners of a vessel shall be civilly liable in the proportion of theirinterests in the common fund, for the results of the acts of the captain, referred to in Section 587.Each co-owner may exempt himself from this liability by the abandonment, before a notary, of the partof the vessel belonging to him.SECTION 591. All the part owners shall be liable, in proportion to their respective ownership,for the expenses for repairing the vessel, and for other expenses which are incurred by virtue of aresolution of the majority.They shall likewise be liable in the same proportion for the expenses for the maintenance, equipment,and provisioning of the vessel, necessary for navigation.SECTION 592. The resolution of the majority with regard to the repair, equipment, andprovisioning of the vessel in the port of departure shall bind the minority, unless the minority membersrenounce their interests, which must be acquired by the other co-owners, after a judicial appraisementof the value of the portion or portions assigned.The resolutions of the majority relating to the dissolution of the partnership and sale of the vessel shallalso be binding on the minority.The sale of the vessel must be made at public auction, subject to the provisions of the law of civilprocedure, unless the co-owners unanimously agree otherwise, saying always the right of repurchaseand redemption provided for in Section 575.SECTION 593. The owners of a vessel shall have preference in her charter over other persons,under the same conditions and price. If two or more of them should claim this right, the one having thegreater interest shall be preferred; and should they have equal interests, the matter shall be decided bylot.SECTION 594. The co-owners shall elect the manager who is to represent them in the capacity ofship agent.The appointment of director or ship agent shall be revocable at the will of the members.SECTION 595. The ship agent, whether he is at the same time the owner of the vessel, or amanager for an owner or for an association of co-owners, must have the capacity to trade and must berecorded in the merchant's registry of the province.The ship agent shall represent the ownership of the vessel, and may, in his own name and in suchcapacity, take judicial and extrajudicial steps in matters relating to commerce.SECTION 596. The ship agent may discharge the duties of captain of the vessel, subject in everycase to the provision of Section 609.If two or more co-owners apply for the position of captain, the disagreement shall be decided by a voteof the members; and if the vote should result in a tie, it shall be decided in favor of the co-owner havingthe larger interest in the vessel.If the interests of the applicants should be equal, and there should be a tie, the matter shall be decidedby lot.SECTION 597. The ship agent shall designate and come to terms with the captain, and shallcontract in the name of the owners, who shall be bound in all that refer to repairs, details of equipment,armament, provisions of food and fuel, and freight of the vessel, and, in general, in all that relate to therequirements of navigation.SECTION 598. The ship agent may not order a new voyage, or make contracts for a new charter,or insure the vessel, without the authorization of its owner or resolution of the majority of the coowners,unless these powers were granted him in the certificate of his appointment. cdasiaIf he insures the vessel without authorization therefore, he shall be subsidiarily liable for the solvencyof the insurer.SECTION 599. The ship agent managing for an association shall render to his associates anaccount of the results of each voyage of the vessel, without prejudice to always having the books andcorrespondence relating to the vessel and to its voyages at their disposal.SECTION 600. After the account of the managing agent has been approved by a relativemajority, the co-owners shall pay the expenses in proportion to their interest, without prejudice to thecivil or criminal actions which the minority may deem fit to institute afterwards.In order to enforce the payment, the managing agent shall be entitled to an executory action ("accionejecutiva"), which shall be instituted by virtue of a resolution of the majority, and without furtherproceedings than the acknowledgment of the signatures of the persons who voted for the resolution.SECTION 601. Should there be any profits, the co-owners may demand of the managing agentthe amount corresponding to their interests by means of an executory action ("accion ejecutiva"),without any other requisite than the acknowledgment of the signatures on the instrument approving theaccount.SECTION 602. The ship agent shall indemnify the captain for all the expenses he may haveincurred with funds of his own or of others, for the benefit of the vessel.SECTION 603. Before the vessel sets out to sea the ship agent may at his discretion discharge thecaptain and members of the crew whose contracts are not for a definite period or voyage, paying themthe salaries earned according to their contracts, and without any indemnity whatsoever, unless there isan express and specific agreement in respect thereto.SECTION 604. If the captain or any other member of the crew should be discharged during thevoyage, they shall receive their salary until they return to the port where the contract was made, unlessthere should be just cause for the discharge, all in accordance with Section 636 and following of thisCode.SECTION 605. If the contracts of the captain and members of the crew with the ship agentshould be for a definite period or voyage, they may not be discharged until after the fulfillment of theircontracts, except by reason of insubordination in serious matters, robbery, theft, habitual drunkenness,or damage caused to the vessel or to its cargo through malice or manifest or proven negligence.SECTION 606. If the captain should be a co-owner of the vessel, he may not be dischargedunless the ship agent returns to him the amount of his interest therein, which, in the absence ofagreement between the parties, shall be appraised by experts appointed in the manner established in thelaw of civil procedure.SECTION 607. If the captain who is a co-owner should have obtained the command of the vesselby virtue of a special agreement contained in the Sections of association, he may not be deprived of hisoffice except for the causes mentioned in Section 605.SECTION 608. In case of the voluntary sale of the vessel, all contracts between the ship agentand the captain shall terminate, reserving to the latter his right to the indemnity which may pertain tohim, according to the agreements made with the ship agent.They vessel sold shall remain subject to the security of the payment of said indemnity if, after theaction against the vendor has been instituted, the latter is found to be insolvent.SECTION TWOCAPTAINS AND MASTERS OF VESSELSSECTION 609. Captains, masters or patrons of vessels must be Filipinos, have legal capacity tocontract in accordance with this code, and prove the skill, capacity, and qualifications necessary tocommand and direct the vessel, as established by marine or navigation laws, ordinances, or regulations,and must not be disqualified according to the same for the discharge of the duties of the position. cdtIf the owner of a vessel desires to be the captain thereof, without having the legal qualificationstherefor, he shall limit himself to the financial administration of the vessel, and shall intrust thenavigation to a person possessing the qualifications required by said ordinances and regulations.SECTION 610. The following powers shall be inherent in the position of captain, master orpatron of a vessel:1. To appoint or make contracts with the crew in the absence of the ship agent, and to propose saidcrew, should said agent be present; but the ship agent may not employ any member against thecaptain's express refusal.2. To command the crew and direct the vessel to the port of its destination, in accordance with theinstructions he may have received from the ship agent.3. To impose, in accordance with the contracts and with the laws and regulations of the merchantmarine, and when on board the vessel, correctional punishment upon those who fail to comply with hisorders or are wanting in discipline, holding a preliminary hearing on the crimes committed on board thevessel on the seas, which crimes shall be turned over to the authorities having jurisdiction over thesame at the first port touched.4. To make contracts for the charter of the vessel in the absence of the ship agent or of itsconsignee, acting in accordance with the instructions received and protecting the interests of the ownerwith utmost care.5. To adopt all proper measures to keep the vessel well supplied and equipped, purchasing all thatmay be necessary for the purpose, provided there is no time to request instruction from the ship agent.6. To order, in similar urgent cases while on a voyage, the repairs on the hull and engines of thevessel and in its rigging and equipment, which are absolutely necessary to enable it to continue andfinish its voyage; but if he should arrive at a point where there is a consignee of the vessel, he shall actin concurrence with the latter.SECTION 611. In order to comply with the obligations mentioned in the preceding Section, thecaptain, when he has no funds and does not expect to receive any from the ship agent, shall obtain thesame in the successive order stated below:1. By requesting said funds from the consignee of the vessel or correspondents of the ship agent.2. By applying to the consignees of the cargo or to those interested therein.3. By drawing on the ship agent.4. By borrowing the amount required by means of a loan on bottomry.5. By selling a sufficient amount of the cargo to cover the sum absolutely indispensable for therepair of the vessel and to enable it to continue its voyage. cdIn these two last cases he must apply to the judicial authority of the port, if in the Philippines, and tothe consul of the Republic of the Philippines if in a foreign country, and where there is none, to thelocal authority, proceeding in accordance with the provisions of Section 583, and with the provisions ofthe law of civil procedure.SECTION 612. The following obligations shall be inherent in the office of captain:1. To have on board before starting on a voyage a detailed inventory of the hull, engines, rigging,spare-masts, tackle, and other equipment of the vessel; the royal or the navigation certificate; the roll ofthe persons who make up the crew of the vessel, and the contracts entered into with them; the lists ofpassengers; the bill of health; the certificate of the registry proving the ownership of the vessel and allthe obligations which encumber the same up to that date; the charter parties or authenticated copiesthereof; the invoices or manifests of the cargo, and the memorandum of the visit or inspection byexperts, should it have been made at the port of departure.2. To have a copy of this code on board.3. To have three folioed and stamped books, placing at the beginning of each one a memorandumof the number of folios it contains, signed by the maritime authority, and in his absence by thecompetent authority.In the first book, which shall be called "log book," he shall enter day by day the condition of theatmosphere, the prevailing winds, the courses taken, the rigging carried, the power of the engines usedin navigation, the distances covered, the maneuvers executed, and other incidents of navigation; heshall also enter the damage suffered by the vessel in her hull, engines, rigging, and tackle, no matterwhat its cause may be, as well as the impairment and damage suffered by cargo, and the effect andimportance of the jettison, should there be any; and in cases of serious decisions which require theadvice or a meeting of the officers of the vessel, or even of the crew and passengers, he shall record thedecisions adopted. For the information indicated he shall make use of the binnacle book and of thesteam of engine book kept by the engineer.In the second book called the "accounting book," he shall record all the amounts collected and paid forthe account of the vessel, entering specifically Section by Section, the source of the collection and theamounts spent for provisions, repairs, acquisitions of equipment or goods, fuel, food, outfits, wages,and other expenses of whatever nature they may be. He shall furthermore enter therein a list of all themembers of the crew, stating their domiciles, their wages and salaries, and the amounts they may havereceived on account, directly or by delivery to their families.In the third book, called "freight book," he shall record the loading and discharge of all the goods,stating their marks and packages, names of the shippers and of the consignees, ports of loading andunloading, and the freightage they give. In this same book he shall record the names and places ofsailing of the passengers, the number of packages in their baggage, and the price of passage.4. Before receiving cargo, to make with the officers of the crew and two experts, if required by theshippers and passengers, an examination of the vessel, in order to ascertain whether it is water-tight,with the rigging and engines in good condition, and with the equipment required for good navigation,preserving under his responsibility a certificate of the memorandum of his inspection, signed by allthose who may have taken part therein.The experts shall be appointed, one by the captain of the vessel and another by those who request itsexamination, and in case of disagreement a third shall be appointed by the marine authority of the portor by the authority, exercising his functions.5. To remain constantly on board the vessel with the crew while the cargo is being taken on boardand to carefully watch the stowage thereof; not to consent to the loading of any merchandise or matterof a dangerous character, such as inflammable or explosive substances, without the precautions whichare recommended for their packing, handling and isolation; not to permit the carriage on deck of anycargo which by reason of its arrangement, volume, or weight makes the work of the sailors difficult,and which might endanger the safety of the vessel; and if, on account of the nature of the merchandise,the special character of the shipment, and principally the favorable season in which it is undertaken,merchandise may be carried on deck, he must hear the opinion of the officers of the vessel and have theconsent of the shippers and of the ship agent.6. To demand a pilot at the expense of the vessel whenever required by the navigation, andprincipally when he has to enter a port, canal, or river, or has to take a roadstead or anchoring placewith which neither he nor the officers and crew are acquainted.7. To be on deck on reaching land and to take command on entering and leaving ports, canals,roadsteads, and rivers, unless there is a pilot on board discharging his duties. He shall not spend thenight away from the vessel except for serious causes or by reason of official business. cdtai8. To present himself, when making a port in distress, to the maritime authority if in thePhilippines and to the consul of the Republic of the Philippines if in a foreign country, before twentyfourhours have elapsed, and to make a statement of the name registry, and port of departure of thevessel, of its cargo, and the cause of arrival which declaration shall be visaed by the authority or theconsul, if after examining the same it is found to be acceptable, giving the captain the proper certificateproving his arrival in distress and the reasons therefor. In the absence of the maritime authority or ofthe consul, the declaration must be made before the local authority.9. To take the necessary steps before the competent authority in order to record in the certificate ofthe vessel in the registry of vessels the obligations which he may contract in accordance with Section583.10. To place under good care and custody all the papers and belongings of any members of the crewwho might die on the vessel, drawing up a detailed inventory, in the presence of passengers, or, in theirabsence, of members of the crew as witnesses.11. To conduct himself according to the rules and precepts contained in the instructions of the shipagent, being liable for all that which he may do in violation thereof.12. To inform the ship agent from the port at which the vessel arrives, of the reason of his arrival,taking advantage of the semaphore, telegraph, mail, etc., as the case may be; to notify him of the cargohe may have received, stating the names and domiciles of the shippers, freightage earned, and amountsborrowed on bottomry loan; to advise him of his departure, and of any operation and date which maybe of interest to him.13. To observe the rules with respect to situation, lights and maneuvers in order to avoid collisions.14. To remain on board, in case the vessel is in danger, until all hope to save it is lost, and beforeabandoning it, to hear the officers of the crew, abiding by the decision of the majority; and if the boatsare to be taken to, he shall take with him, before anything else, the books and papers, and then theSections of most value, being obliged to prove, in case of the loss of the books and papers, that he did allhe could to save them.15. In case of wreck, to make the proper protest in due form at the first port of arrival, before thecompetent authority or the Philippine consul, within twenty-four hours, specifying therein all theincidents of the wreck, in accordance with subdivision 8 of this Section.16. To comply with the obligations imposed by the laws and regulations on navigation, customs,health, and others.SECTION 613. A captain who navigates for freight in common or on shares may not make anyseparate transaction for his own account; and should he do so, the profit which may accrue shall belongto the other persons interested, and the losses shall be borne by him exclusively.SECTION 614. A captain who, having made an agreement to make a voyage, fails to perform hisundertaking, without prevented by fortuitous accident or force majeure, shall indemnify for all thelosses which he may cause without prejudice to the criminal penalties which may be proper.SECTION 615. Without the consent of the agent, the captain cannot have himself substituted byanother person; and should he do so, besides being liable for all the acts of the substitute and bound tothe indemnities mentioned in the foregoing Sections, the captain as well as the substitute may bedischarged by the ship agent.SECTION 616. If the provisions and fuel of the vessel should be consumed before arriving at theport of destination, the captain shall order, with the consent of the officers of the same, the arrival at thenearest port to get a supply of either; but if there are persons on board who have provisions of theirown, he may force them to deliver said provision for the common consumption of all those who may beon board, paying the price thereof at the same time, or at the latest, at the first port reached.SECTION 617. The captain may not contract loans on respondentia secured by the cargo; andshould he do so, the contracts shall be void.Neither may he borrow money on bottomry for his own transactions, except on the portion of the vesselhe owns, provided no money has been previously borrowed on the whole vessel, and there does notexist any other kind of lien or obligation chargeable against the vessel. If he may do so, he must statewhat interest he has in the vessel.In case of violation of this Section, the principal, interest, and costs shall be for the personal account ofthe captain, and the ship agent may furthermore discharge him.SECTION 618. The captain shall be civilly liable to the ship agent, and the latter to the thirdpersons who may have made contracts with the former;1. For all the damages suffered by the vessel and its cargo by reason of want of skill or negligenceon his part. If a misdemeanor or crime has been committed, he shall be liable in accordance with thePenal Code. cda2. For all the thefts committed by the crew, reserving his right of action against the guilty parties.3. For the losses, fines, and confiscations imposed an account of violation of customs, police,health, and navigation laws and regulations.4. For the losses and damages caused by mutinies on board the vessel or by reason of faultscommitted by the crew in the service and defense of the same, if he does not prove that he made timelyuse of all his authority to prevent or avoid them.5. For those caused by the misuse of the powers and the non-fulfillment of the obligationspertaining to him in accordance with Sections 610 and 612.6. For those arising by reason of his going out of his course or taking a course which he should nothave taken without sufficient cause, in the opinion of the officers of the vessel, at a meeting with theshippers or supercargoes who may be on board.No exceptions whatsoever shall exempt him from this obligation.7. For those arising by reason of his voluntarily entering a port other than that of his destination,outside of the cases or without the formalities referred to in Section 612.8. For those arising by reason of non-observance of the provisions contained in the regulations onsituation of lights and maneuvers for the purpose of preventing collisions.SECTION 619. The captain shall be liable for the cargo from the time it is delivered to him at thedock or afloat alongside the at the port of loading, until he delivers it on the shore or on the dischargingwharf at the port of unloading, unless the contrary has been expressly agreed upon.SECTION 620. The captain shall not be liable for the damages caused to the vessel or to thecargo by force majeure; but he shall always be so for those arising through his own fault, no agreementto the contrary being valid.Neither shall he be personally liable for the obligations he may have contracted for the repair,equipment, and provisioning of the vessel, which shall devolve upon the ship agent, unless the formerhas expressly bound himself personally or has signed a bill of exchange or promissory note in hisname.SECTION 621. A captain who borrows money on the hull, engine, rigging or tackle of the vessel,or pledges or sells merchandise or provisions outside of the cases and without the formalitiesprescribed in this Code, shall be liable for the principal, interests, and costs, and shall indemnify for thedamages he may cause.He who commits fraud in his accounts shall pay the amount defrauded and shall be subject to theprovisions of the Penal Code.SECTION 622. If while on a voyage the captain should learn of the appearance of privateers ormen of war against his flag, he shall be obliged to make the nearest neutral port, inform his agent orshippers, and await an occasion to sail under convoy, or until the danger is over or he has receivedexpress orders from the ship agent or the shippers.SECTION 623. If he should be attacked by a privateer, and, after having tried to avoid theencounter and having resisted the delivery of the effects of the vessel or its cargo, they should beforcibly taken away from him, or he should be obliged to deliver them, he shall make an entry thereofin his freight book and shall prove the fact before the competent authority at the first port he touches.cdasiaAfter the force majeure has been proved, he shall be exempted from liability.SECTION 624. A captain whose vessel has gone through a hurricane or who believes that thecargo has suffered damages or averages, shall make a protest thereon before the competent authority atthe first port he touches, within twenty-four hours following his arrival and shall ratify it within thesame period when he arrives at his destination, immediately proceeding with the proof of the facts, andhe may not open the hatches until after this has been done.The captain shall proceed in the same manner, if, the vessel having been wrecked; he is saved alone orwith part of his crew, in which case he shall appear before the nearest authority, and make a swornstatement of facts.The authority or the consul shall verify the said facts receiving sworn statements of the members of thecrew and passengers who may have been saved; and taking such other steps as may assist in arriving atthe facts he shall make a statement of the result of the proceedings in the log book and in that of thesailing mate, and shall deliver to the captain the original record of the proceedings, stamped andfolioed, with a memorandum of the folios, which he must rubricate, in order that it may be presented tothe judge or court of the port of destination.The statement of the captain shall be accepted if it is in accordance with those of the crew andpassengers; if they disagree, the latter shall be accepted, always saying proof to the contrary.SECTION 625. The captain, under his personal responsibility as soon as he arrives at the port ofdestination, should get the necessary permission from the health and customs officers, and perform theother formalities required by the regulations of the administration, delivering the cargo without anydefalcation, to the consignee, and in a proper case, the vessel, rigging, and freightage to the ship agent.If by reason of the absence of the consignee or on account of the nonappearance of a legal holder of thebills of lading, the captain should not know to whom he is to legally make the delivery of the cargo, heshall place it at the disposal of the proper judge or court or authority, in order that he may determinewhat is proper with regard to its deposit, preservation and custody.SECTION THREEOFFICERS AND CREW OF VESSELSSECTION 626. In order to be a sailing mate it shall be necessary:1. To have the qualifications required by the marine or navigation laws or regulations.2. Not to be disqualified in accordance therewith for the discharge of his duties.SECTION 627. The sailing mate, as the second chief of the vessel, and unless the agent ordersotherwise, shall take the place of the captain in cases of absence, sickness, or death, and shall thenassume all his powers, duties, and responsibilities.SECTION 628. The sailing mate must provide himself with charts of the seas in which he willnavigate with the astronomical tables and instruments for observation which are in use and which arenecessary for the discharge of his duties, being liable for the accidents which may arise by reason of hisomission in this regard.SECTION 629. The sailing mate shall particularly and personally keep a book, folioed andstamped on all its pages, denominated "Binnacle Book" with a memorandum at the beginning statingthe number of folios it contains, signed by the competent authority, and shall enter therein daily thedistance, the course travelled, the variations of the needle, the leeway, the direction and force of thewind, the condition of the atmosphere and of the sea, the rigging set, the latitude and longitudeobserved, the number of furnace heated, the steam pressure, the number of revolutions, and under thetitle "incidents," the maneuvers made, the meeting with other vessels, and all the details and incidentswhich. may occur during the voyage.SECTION 630. In order to change the course and to take the one most convenient for a goodvoyage of the vessel, the sailing mate shall come to an agreement with the captain. If the latter shouldobject, the sailing mate shall state to him the proper observations in the presence of the other officers ofthe sea. If the captain should still insist on his negative decision, the sailing mate shall make the properprotest, signed by him and by one other officer, in the log book, and shall obey the captain, who aloneshall be responsible for the consequences of his decision.SECTION 631. The sailing mate shall be responsible for all the damages caused to the vessel andthe cargo by reason of his negligence or want of skill without prejudice to the criminal liability whichmay arise, if a felony or misdemeanor has been committed. aisadcSECTION 632. The following shall be the obligations of the second mate:1. To watch over the preservation of the hull and rigging of the vessel, and to take charge of thepreservation of the tackle and equipment which make up her outfit, suggesting to the captain the repairsnecessary and the replacement of the goods and implements which are rendered useless and are lost.2. To take care that the cargo is well arranged, keeping the vessel always ready for maneuver.3. To preserve order, discipline, and good service among the crew, requesting the necessary ordersand Instructions of the captain, and giving him prompt information of any occurrence in which theintervention of his authority may be necessary.4. To assign to each sailor the work he is to do on board, in accordance with the instructionreceived and to see that it is promptly and accurately carried out.5. To take charge under inventory of the rigging and all the equipment of the vessel, if it should belaid up, unless the ship agent has ordered otherwise.With regard to engineers the following rules shall govern:1. In order to be taken on board as a marine engineer forming part of the complement of amerchant vessel, it shall be necessary to have the qualifications which the laws and regulations require,and not be disqualified in accordance therewith for the discharge of his duties. Engineers shall beconsidered officers of the vessel but they shall have no authority or intervention except in mattersreferring to the motor apparatus.2. When there are two or more engineers on board a vessel, one of them shall be the chief, and theother engineers and all the personnel of the engines shall be under his orders; he shall also have chargeof the motor apparatus, the spare parts, the instruments and tools pertaining thereto, the fuel, thelubricating material and, finally, whatever is entrusted to an engineer on board a vessel.3. He shall keep the engines and boilers in good condition and state of cleanliness, and shall orderwhat may be proper in order that they may always be ready to work with regularity, being liable for theaccidents or damages which his negligence or want of skill may cause to the motor apparatus, to thevessel and to the cargo, without prejudice to the criminal liability which may be proper if there hasbeen a felony or misdemeanor.4. He shall not make any change in the motor apparatus, or proceed to repair the averages he mayhave noticed in the same, or change the normal speed of its movement without the prior authorizationof the captain., to whom, if he should object to their being made, he shall state the proper observationsin the presence of the other engineers or officers; and if, notwithstanding this, the captain should insiston his objection, the chief engineer shall make the proper protests, entering the same in the enginebook, and shall obey the captain, who, alone shall be responsible for the consequences of his decision.5. He shall inform the captain of any average which may occur in the motor apparatus, and shalladvise him whenever it may be necessary to stop the engines for some time, or when any other incidentoccurs in his department of which the captain should be immediately informed, besides frequentlyadvising him of the consumption of fuel and lubricating material.6. He shall keep a book or registry called the "engine book," in which shall be entered all the datereferring to the work of the engines, such as, for example, the number of furnaces heated, the vacuumin the condenser, the temperature, the degree of saturation of the water in the boilers the consumptionof fuel and lubricating material, and under the heading of "noteworthy occurrences," the averages andmaladjustments which occur in the engines and boilers, the causes thereof and the means employed torepair the same likewise, the force and direction of the wind, the rigging set and the speed of the vesselshall be stated, taking the information from the Binnacle Book.SECTION 633. The second mate shall take command of the vessel in case of the inability ordisqualification of the captain and the sailing mate, assuming in such case their powers andresponsibility.SECTION 634. The captain may make up the crew of his vessel with such number of men as hemay consider proper, and in the absence of Filipino sailors, he may take on foreigners residing in thecountry, the number thereof not to exceed one-fifth of the crew. If in foreign ports the captain shouldnot find a sufficient number of Filipino sailors, he may complete the crew with foreigners, with theconsent of the consul or marine authorities.The agreement which the captain may make with the members of the crew and others who go to makeup the complement of the vessel, to which reference is made in Section 612, must be reduced to writingin the account book, without the intervention of a notary public or clerk of court ("escribano"), signedby the parties thereto and visaed by the marine authority if they be executed in Philippine territory orby the consuls or consular agents of the Republic of the Philippines if executed abroad, stating thereinall the obligations which each one contracts and all the rights he acquires said authorities taking carethat these obligations and rights are recorded in a clear and definite manner which give no room fordoubts or claims. cdThe captain shall take care to read to them the Sections of this Code which concern them, stating in saiddocument that they were read.If the book contains the requisites prescribed in Section 612, and there should not appear any signs ofalterations in its entries, it shall be admitted as evidence in questions which may arise between thecaptain and the crew with respect to the agreements contained therein and the amounts paid on accountof the same.Every member of the crew may demand of the captain a copy, signed by the latter, of the agreementand of the liquidation of his wages, as they appear in the book.SECTION 635. A seaman who has been contracted to serve on a vessel may not rescind hiscontract or fail to comply therewith except by reason of a legitimate impediment which may havehappened to him.Neither may he transfer from the service of one vessel to another without obtaining the writtenpermission of the captain of the vessel on which he may be.If, without obtaining said permission, the seaman who has signed for one vessel should sign foranother one, the second contract shall be void, and the captain may choose between forcing him tofulfill the service to which he first bound himself, or at his expense to look for a person to substitutehim.Furthermore, he shall lose the wages earned on his first contract, to the benefit of the vessel for whichhe had signed.A captain who, knowing that a seaman is in the service of another vessel, should have made a newagreement with him without having required of him the permission referred to in the precedingparagraphs, shall be subsidiarily responsible to the captain of the vessel to which the seaman firstbelonged, for that part of the indemnity, referred to in the third paragraph of this Section, which theseaman may not be able to pay.SECTION 636. If there is no fixed period for which a seaman has been contracted he may not bedischarged until the end of the return voyage to the port where he enlisted.SECTION 637. Neither may the captain discharge a seaman during the time of his contractexcept for just cause, the following being considered as such:1. The perpetration of a crime which disturbs order on the vessel.2. Repeated insubordination, want of discipline, or non-fulfillment of the service.3. Repeated incapacity and negligence in the fulfillment of the service he should render.4. Habitual drunkenness.5. Any occurrence which incapacitates the seaman to perform the work entrusted to him, with theexception of that provided in Section 644.6. Desertion.The captain may, however, before getting out on a voyage and without giving any reason, refuse topermit a seaman whom he may have engaged to go on board, and leave him on land, in which case hewill be obliged to pay him his wages as if he had rendered services.This indemnity shall be paid from the funds of the vessel if the captain should have acted for reasons ofprudence and in the interest of the safety and good services of the farmer. Should this not be the case, itshall be paid by the captain personally. aisadcAfter the voyage has begun, during the same, and until the conclusion thereof, the captain may notabandon any member of his crew on land or on sea, unless, by reason of some crime, his imprisonmentand delivery to the competent authority in the first port touched should be proper, a matter obligatoryfor the captain.SECTION 638. If, after the crew has been engaged, the voyage is revoked by the will of the shipagent or of the charterers before or after the vessel has put to sea, or if the vessel is for the same reasongiven a destination different from that fixed in the agreement with the crew, the latter shall beindemnified on account of the rescission of the contract, according to the cases follows:1. If the revocation of the voyage should be decided upon before the departure of the vessel fromthe port, each sailor engaged shall be given one month's salary, besides what may be due him, inaccordance with his contract, for the services rendered to the vessel up to the date of the revocation.2. If the agreement should have been for a fixed amount for the whole voyage, that which may bedue for said month and days shall be determined in proportion to the approximate number of days thevoyage should have lasted, in the judgment of experts, in the manner established in the law of CivilProcedure; and if the proposed voyage should be of such short duration that it is calculated atapproximately one month, the indemnity shall be fixed for fifteen days, discounting in all cases thesums advanced.3. If the revocation should take place after the vessel has put to sea, the seamen engaged for afixed amount for the voyage shall receive in full the salary which may have been offered them as if thevoyage had terminated; and those engaged by the month shall receive the amount corresponding to thetime they might have been on board and to the time they may require to arrive at the port of destination,the captain being obliged, furthermore, to pay the seamen in both cases, the passage to the said port orto the port of sailing of the vessel, as may be convenient for them.4. If the ship agent or the charterers of the vessel should give it a destination different from thatfixed in the agreement, and the members of the crew should not agree thereto, they shall be given byway of indemnity half the amount fixed in case No. 1, besides what may be owed them for the part ofthe monthly wages corresponding to the days which have elapsed from the date of their agreements.If they accept the change, and the voyage, on account of the greater distance or of other reasons, shouldgive rise to an increase of wages, the latter shall be adjusted privately or through amicable arbitrators incase of disagreement. Even though the voyage should be shortened to a nearer point, this shall not giverise to a reduction in the wages agreed upon.If the revocation or change of the voyage should come from the shippers or charterers, the agent shallhave a right to demand of them the indemnity which may be justly due.SECTION 639. If the revocation of the voyage should arise from a just cause independent of thewill of the ship agent and charterers, and the vessel should not have left the port, the members of thecrew shall have no other right than to collect the wages earned up to the day on which the revocationtook place.SECTION 640. The following shall be just causes for the revocation of the voyage.1. A declaration of war or interdiction of commerce with the power to whose territory the vesselwas bound.2. The blockade of the port of its destination, or the breaking out of an epidemic after theagreement.3. The prohibition to receive in said port the goods which make up the cargo of the vessel.4. The detention or embargo of the same by order of the government, or for any other reasonindependent of the will of the ship agent.5. The inability of the vessel to navigate. cdasiaSECTION 641. If, after a voyage has been begun, any of the first three causes mentioned in theforegoing Section should occur, the sailors shall be paid at the port which the captain may deemadvisable to make for the benefit of the vessel and cargo, according to the time they may have servedthereon; but if the vessel is to continue its voyage, the captain and the crew may mutually demand theenforcement of the contract.In case of the occurrence of the fourth cause, the crew shall continue to be paid half wages, if theagreement is by month; but if the detention should exceed three months, the contract shall be rescindedand the crew shall be paid what they should have earned according to the contract if the voyage hadbeen concluded. And if the agreement should be for a fixed sum for the voyage, the contract must becomplied within the terms agreed upon.In the fifth case, the crew shall have no other right than to collect the wages earned; but if the disabilityof the vessel should have been caused by the negligence or lack of skill of the captain, engineer, orsailing mate, they shall indemnify the crew for the damages suffered, always without prejudice to thecriminal liability which may be proper.SECTION 642. If the crew have been engaged on shares, they shall not be entitled, by reason ofthe revocation, delay, or greater extension of the voyage, to anything but the proportionate part of theindemnity which way be paid into the common funds of the vessel by the persons liable for saidoccurrences.SECTION 643. If the vessel and her cargo should be totally lost, by reason of capture or wreck,all rights shall be extinguished, both as regards the crew to demand any wages whatsoever, and asregards the ship agent to recover the advances made.If a portion of the vessel or of the cargo, or of both, should be saved, the crew engaged on wages,including the captain, shall retain their rights on the salvage, so far as they go, on the remainder of thevessel as well as on the amount of the freightage of the cargo saved; but sailors who are engaged onshares shall not have any right whatsoever on the salvage of the hull, but only on the portion of thefreightage saved. If they should have worked to recover the remainder of the shipwrecked vessel theyshall be given from the amount of the salvage an award in proportion of the efforts made and to therisks, encountered in order to accomplish the salvage.SECTION 644. A seaman who falls sick shall not lose his right to wages during the voyage,unless the sickness is the result of his own fault. At any rate, the costs of the attendance and cure shallbe defrayed from the common funds, in the form of a loan.If the sickness should come from an injury received in the service or defense of the vessel, the seamanshall be attended and cured at the expense of the common funds deducting, before anything else, fromthe proceeds of the freightage the cost of the attendance and cure.SECTION 645. If a seaman should die during the voyage, his heirs will be given the wagesearned and not received according to his contract and the cause of his death, namely If he died a natural death and was engaged on wages, that which may have been earned up to the dateof his death shall be paid.If the contract was for a fixed sum for the whole voyage, half the amount earned shall be paid if theseamen died on the voyage out, and the whole amount if he died on the return voyage.And if the contract was on shares and death occurred after the voyage was begun, the heirs shall bepaid the entire portion due the seaman; but if the latter died before the departure of the vessel from theport, the heirs shall not be entitled to claim anything.If death occurred in the defense of the vessel, the seaman shall be considered as living, and his heirsshall be paid, at the end of the voyage, the full amount of wages or the integral part of the profits whichmay be due him as to others of his class.In the same manner, the seaman captured while defending the vessel shall be considered present so asto enjoy the same benefits as the rest; but should he have been captured on account of carelessness orother accident not related to the service, he shall only receive the wages due up to the day of hiscapture.SECTION 646. The vessel with her engines, rigging, equipment, and freightage shall he liable forthe wages earned by the crew engaged per month or for the trip, the liquidation and payment to takeplace between one voyage and the other.After a new voyage has been undertaken, credits of such kind pertaining to the preceding voyage shalllose their right of preference.SECTION 647. The officers and the crew of the vessel shall be free from all obligations if theydeem it proper, in the following cases:1. If, before beginning the voyage, the captain attempts to change it, or a naval war with the powerto which the vessel was destined occurs.2. If a disease should break out and be officially declared an epidemic in the port of destination.3. If the vessel should change owner or captain.SECTION 648. By the complement of a vessel shall be understood all the persons on board, fromthe captain to the cabin boy, necessary for the management, maneuvers, and service, and therefore, thecomplement shall include the crew, the sailing mates, engineers, stokers and other employees on boardnot having specific designations; but it shall not include the passengers or the persons whom the vesselis transporting.SECTION FOURSUPERCARGOESSECTION 649. Supercargoes shall discharge on board the vessel the administrative duties whichthe ship agent or the shippers may have assigned to them; they shall keep an account and record of theirtransactions in a book which shall have the same conditions and requisites as required for theaccounting book of the captain, and they shall respect the latter in his capacity as chief of the vessel.cdtaiThe powers and responsibilities of the captain shall cease, when there is a supercargo, with regard tothat part of the administration legitimately conferred upon the latter, but shall continue in force for allacts which are inseparable from his authority and office.SECTION 650. All the provisions contained in the second section of Title III, Book II, withregard to capacity, manner of making contracts, and liabilities of factors, shall be applicable tosupercargoes.SECTION 651. Supercargoes may not, without special authorization or agreement, make anytransaction for their own account during the voyage, with the exception of the ventures which, inaccordance with the custom of the port of destination, they are permitted to do.Neither shall they be permitted to invest in the return trip more than the profits from the ventures,unless there is an express authorization from the principals.TITLE THREESPECIAL CONTRACTS OF MARITIME COMMERCESECTION ONECHARTER PARTIESPART IFORMS AND EFFECTS OF CHARTER PARTIESSECTION 652. A charter party must be drawn in duplicate and signed by the contracting parties,and when either does not know how or is not able to do so, by two witnesses at his request.The charter party shall contain, besides the conditions freely stipulated, the following circumstances:1. The kind, name, and tonnage of the vessel.2. Its flag and port of registry.3. The name, surname, and domicile of the captain.4. The name, surname, and domicile of the ship agent, if the latter should make the charter party.5. The name, surname, and domicile of the charterer; and if he states that he is acting bycommission, that of the person for whose account he makes the contract.6. The port of loading and unloading.7. The capacity, number of tons or the weight or measurement which they respectively bindthemselves to load and to transport, or whether the charter party is total.8. The freightage to be paid, stating whether it is to be a fixed amount for the voyage or so muchper month, or for the space to be occupied, or for the weight or measure of the goods of which thecargo consists, or in any other manner whatsoever agreed upon.9. The amount of primage to be paid to the captain.10. The days agreed upon for loading and unloading.11. The lay days and extra lay days to be allowed and the demurrage to be paid for each of them.SECTION 653. If the cargo should be received without the charter party having been signed, thecontract shall be understood as executed in accordance with what appears in the bill of lading, the soleevidence of title with regard to the cargo for determining the rights and obligations of the ship agent,of the captain, and of the charterer. cdtSECTION 654. The charter parties executed with the intervention of a broker, who certifies tothe authenticity of the signatures of the contracting parties because they were signed in his presence,shall be full evidence in court; and if they should be conflicting, that which accords with one which thebroker must keep in his registry, if kept in accordance with law, shall govern.The contracts shall also be admitted as evidence, even though a broker has not taken part therein, if thecontracting parties acknowledge the signatures to be the same as their own.If no broker has intervened in the charter party and the signatures are not acknowledged, doubts shallbe decided by what is provided for in the bill of lading and in the absence thereof, by the proofssubmitted by the parties.SECTION 655. Charter parties executed by the captain in the absence of the ship agent shall bevalid and effective, even though in executing them he should have acted in violation of the orders andinstructions of the ship agent or shipowner; but the latter shall have a right of action against the captainfor indemnification of damages.SECTION 656. If in the charter party the time in which the loading and unloading are to takeplace is not stated, the usages of the port where these acts take place shall be observed. After thestipulated or the customary period has passed, and there is no express proviso in the charter party fixingthe indemnity for the delay, the captain shall be entitled to demand demurrage for the lay days andextra lay days which may have elapsed in loading and unloading.SECTION 657. If during the voyage the vessel should be rendered unseaworthy, the captain shallbe obliged to charter at his expense another one in good condition to receive the cargo and carry it to itsdestination, for which purpose he shall be obliged to look for a vessel not only at the port of arrival butalso in the neighborhood within distance of 150 kilometers.If the captain, through indolence or malice, should not furnish a vessel to its destination, the shippers,after requiring the captain to charter a vessel within an inextendible period, may charter one andpetition the judicial authority to summarily approve the charter party which they may have made.The same authority shall judicially ("por la via de appremio") compel the captain, to carry out, for hisaccount and under his responsibility, the charter made by the shippers.If the captain, notwithstanding his diligence, should not find a vessel for the charter, he shall depositthe cargo at the disposal of the shippers, to whom he shall communicate the facts on the firstopportunity which presents itself, the freight being adjusted in such cases by the distance covered bythe vessel, with no right to any indemnification whatsoever.SECTION 658. The freightage shall accrue according to the conditions stipulated in the contract,and should they not be expressed, or should they be ambiguous, the following rules shall be observed:1. If the vessel has been chartered by months or by days, the freightage shall begin to run from theday the loading of the vessel is begun.2. In charters made for a fixed period, the freightage shall begin to run from that very day.3. If the freightage is charged according to weight, the payment shall be made according to grossweight, including the containers, such as barrels or any other objects in which the cargo is contained.SECTION 659. The merchandise sold by the captain to pay for the necessary repairs to the hull,machinery or equipment, or for unavoidable and urgent needs, shall pay freightage. cdtThe price of this merchandise shall be fixed according to the result of the voyage, namely:1. If the vessel should arrive safely at the port of destination, the captain shall pay the price whichthe sale of merchandise of the same kind brings at that port.2. If the vessel should be lost, the captain shall pay the price realized from said merchandise in thesale.The same rule shall be observed in the payment of the freightage, which shall be in full if the vesselarrives at her destination, and in proportion to the distance covered if she should be lost before arrival.SECTION 660. Merchandise jettisoned for the common safety shall not pay freightage; but theamount of the latter shall be considered as general average computing the same in proportion to thedistance covered when they were jettisoned.SECTION 661. Neither merchandise lost by reason of shipwreck or stranding nor those seized bythe pirates or enemies, shall pay freightage.If the freightage should have been paid in advance, it shall be returned, unless there is an agreement tothe contrary.SECTION 662. If the vessel or the merchandise should be redeemed, or the effects of theshipwreck be salvaged, the freightage corresponding to the distance covered by the vessel transportingthe cargo shall be paid; and should the vessel, after being repaired, transport said merchandise to theport of destination, the full freightage shall be paid, without prejudice to what may be due by reason ofthe average.SECTION 663. Merchandise which suffer deterioration or diminutions on account of inherentdefects or bad quality and condition of the packing, or because of fortuitous event, shall pay freightagein full and as stipulated in the charter party.SECTION 664. The natural increase in weight or size of the merchandise loaded on the vesselshall accrue to the benefit of the owner, and shall pay the proper freightage fixed in the contract for thesame.SECTION 665. The cargo shall be specially liable for the payment of the freightage, expensesand duties arising therefrom, which must be reimbursed by the shippers, as well as for the part of thegeneral average which may correspond to it; but it shall not be legal for the captain to delay unloadingon account of suspicion that this obligation may not be complied with.Should there be reasons for distrust, the judge or court, at the instance of the captain, may order thedeposit of the merchandise until he has been paid in full.SECTION 666. The captain may request the sale of the cargo to the amount necessary to pay thefreightage, expenses, and averages due him, reserving the right to demand the balance due him thereforif the proceeds of the sale should not suffice to cover his credit.SECTION 667. The goods loaded shall be liable in the first place for the freight and expensesthereof during twenty days, to be counted from the date of their delivery or deposit. During this period,the sale of the same may be requested, even though there be other creditors and the bankruptcy of theshipper or consignee should occur.This right may not he made use of, however, on the goods which, after being delivered, were turnedover to a third person without malice on the part of the latter and for a valuable consideration. cdasiaSECTION 668. If the consignee should not be found or should refuse to receive the cargo, thejudge or court, at the instance of the captain, shall order its deposit and the sale of what may benecessary to pay the freightage and other expenses on the same.The sale shall likewise be allowed when the goods deposited run the risk of deteriorating, or by reasonof their condition or other circumstances the expenses of preservation and custody should bedisproportionate.PART 2RIGHTS AND OBLIGATIONS OF SHIPOWNERSSECTION 669. The shipowner or the captain shall observe in charter parties the capacity of thevessel or that expressly designated in its registry, a difference greater than 2 per cent between thatstated and her true capacity not being permissible.If the shipowner or the captain should contract to carry a greater amount of cargo than the vessel cancarry in view of her tonnage, they shall indemnify the shippers whose contracts they do not fulfill forthe losses they may have caused when by reason of their default, according to the following cases, viz:If the vessel has been chartered by one shipper only, and there should appear to be an error or fraud inher capacity, and the charterer should not wish to rescind the contract, when he has a right to do so, thefreightage shall he reduced in proportion to the cargo which the vessel can not receive, the person fromwhom the vessel is chartered being furthermore obliged to indemnify the charterer for the losses hemay have caused him.If, on the contrary there should be several charter parties, and by reason of want of space all the cargocontracted for cannot be loaded, and none of the charterers desires to rescind the contract, preferenceshall be given to the person who has already loaded and arranged the freight in the vessel, and the restshall take the places corresponding to them in the order of the dates of their contracts.Should there be no priority, the charterers may load, if they wish, in proportion to the amounts ofweight or space for which each may have contracted, and the person from whom the vessel waschartered shall he obliged to indemnify them for losses and damages.SECTION 670. If the person from whom the vessel is chartered, after receiving a part of thefreight, should not find sufficient to make up at least three-fifths of the amount which the vessel mayhold, at the price he may have fixed, he may substitute for the transportation another vessel inspectedand declared suitable for the same voyage, the expenses of transfer and the increase in the price of thecharter, should there be any, being for his account. Should he not be able to make this change, he shallundertake the voyage at the time agreed upon; and should no time have been fixed, within fifteen daysfrom the time the loading began, unless otherwise stipulated.If the owner of the part of the freight already loaded should procure some more at the same price andunder similar or proportionate conditions to those accepted for the freight received, the person fromwhom the vessel is chartered or the captain can not refuse to accept the rest of the cargo; and should hedo so, the shipper shall have a right to demand that the vessel put to sea with the cargo which it mayhave on board.SECTION 671. After three-fifths of the vessel has been loaded, the person from whom she ischartered may not, without the consent of the charterers or shippers, substitute the vessel designated inthe charter party by another one, under the penalty of making himself thereby liable for all the lossesand damages occurring during the voyage to the cargo of those who did not consent to the change.SECTION 672. If the vessel has been chartered in whole, the captain may not, without theconsent of the charterer, accept cargo from any other person; and should he do so, said charterer mayoblige him to unload it and to indemnify him for the losses suffered thereby.SECTION 673. The person from whom the vessel is chartered shall he liable for all the lossescaused to the charterer by reason of the voluntary delay of the captain in putting to sea, according to therules prescribed, provided he has been requested, notarially or judicially, to put to sea at the propertime.SECTION 674. If th