Part 2 Flashcards
(49 cards)
Bill of lading/Ticket
A written acknowledgment, signed by the master of a vessel or other authorized agent of the carrier, that he has received the described goods from the shipper, to be transported on the expressed terms, to the described place of destination, and to be delivered there to the designated consignee or parties.
A bill of lading or ticket is necessary for the perfection of a contract of carriage. T or F.
False.
Thus, the obligation of the carrier to exercise extraordinary diligence in transporting the goods or passengers is present even if no bill of lading or ticket was issued by the carrier. This is implicit from Article 354 of the Code of Commerce.
Art. 354 of Code of Commerce
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. [suppletory. Main padin si Civil Code]
Data messages or electronic documents can be used in lieu of transport documents in writing or paper documents. T or F.
True.
Electronic Commerce Act (RA 8792)
Kinds of Bill of Lading
- negotiable or non-negotiable
- clean bill of lading or foul bill of lading
- on board bill or received for shipment bill
- spent bill of lading
- through bill of lading
- custody bill of lading
- port bill of lading
Clean bill of lading vs. Foul bill of lading
Clean bill of lading: one which does not contain any notation indicating any defect in the goods
Foul bill of lading: one that contains such notation
Spent bill of lading
Where the goods are already delivered to the carrier, the carrier is supposed to have retrieved the covering bill of lading that he issued for the goods. If the goods were already delivered but the bill of lading was not returned, the bill of lading is called a “spent bill of lading.”
Through bill of lading
One issued by a carrier who is obliged to use the facilities of other carriers as well as his own facilities for the purpose of transporting the goods from the city of the seller to the city of the buyer, which bill of lading is honored by the second and other interested carriers who do not issue their own lading.
On board bill vs. Received for shipment bill
On board bill of lading: one in which it is stated that the goods have been received on board the vessel which is to carry the goods. These are issued when the goods have been actually placed aboard the ship with every reasonable expectation that the shipment is as good as on its way.
Received for shipment bill of lading: one in which it is stated that the goods have been received for shipment with or without specifying the vessel by which the goods are to be shipped. These are issued whenever conditions are not normal and there is insufficiency of shipping space.
[A party to a maritime contract would require an on board bill of lading because of its apparent guaranty of certainty of shipping as well as the seaworthiness of the vessel which is to carry the goods.]
Custody bill of lading
In this type of bill of lading, the goods are already received by the carrier but the vessel indicated therein has not yet arrived in the port.
Port Bill of Lading
The vessel indicated in the bill of lading that will transport the goods is already in the port.
Nature of Bill of Lading
Operates both as
1) receipt
- receipt for the goods shipped
2) contract
- contract to transport and deliver the same as therein stipulated
- stipulates the rights and obligations assumed by the parties
- law between the parties who are bound by its terms and conditions provided these are not contrary to law, morals, good customs, public order and public policy
3) a document of title which makes it a symbol of the goods
When does a bill of lading become effective
Usually upon its delivery to and acceptance by the shipper.
It is presumed that the stipulations of the bill are, in absence of fraud, concealment or improper conduct, known to the shipper, and he is generally bound by his acceptance whether he reads the bill or not. T or F.
True.
The three-fold nature of a bill of lading is applicable to all circumstances. T or F.
False. Only to carriage of goods.
The nature of a BoL as receipt and as document of title can be applied only to a BoL that is issued for goods and not to a passenger ticket. However, the nature of a BoL as contract applies to tickets issued to passengers.
Shipping receipts, forwarders receipts, receipts for transportation vs. BoL
If it contains an acknowledgment by the carrier of the receipt of goods for transportation, it is, in legal effect, a bill of lading.
Designation and form of the instrument is material. T or F.
False.
Parties in a BoL
Shipper and the carrier
A consignee, although not a signatory to the contract of carriage between the shipper and the carrier, becomes a party to the contract by reason of either
a) relationship of agency between the consignee and the shipper/consignor
b) unequivocal acceptance of the bill of lading delivered to the consignee, with full knowledge of its contents or
c) availment of the stipulation pour autrui i.e., when the consignee, a third person, demands before the carrier the fulfillment of the stipulation made by the consignor/shipper in the consignee’s favor, specifically the delivery of the goods/cargoes shipped
Contract of Adhesion
A contract drafted only by one party, usually the carrier, and is sought to be accepted or adhered to by the other party, the passengers or shippers. The latter cannot change the contract and they are thus made to adhere thereto on the “take it or leave it” basis.
BoLs are contracts of adhesion. T or F.
True.
BoLs are construed liberally in favor of
the passenger or shipper who adhered to such BoL or ticket
> > to protect the weaker party from abuses and imposition, and prevent their becoming traps for the unwary (Art. 24 NCC)
Parol Evidence Rule
The terms of a contract are rendered conclusive upon the parties, and evidence aliunde is not admissible to vary or contradict a complete and enforceable agreement embodied in a document, subject to well defined exceptions. It is based on the consideration that when the parties have reduced their agreement on a particular matter into writing, all their previous and contemporaneous agreements on the matter are merged therein.
- verbal not admissible
A bill of lading is not covered by the parol evidence rule. T or F.
False.
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.
Art. 353, Code of Commerce
