BILL OF LADING is a written acknowledgement signed by the master of the vessel,

that he has received the goods therein described, from the shipper, to be
transported on the terms therein expressed, to the described place of destination,
and there to be delivered to the consignee or parties therein designated.
BILLS OF LADING COVERS ALL FORMS OF TRANSPORTATION
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The civil code contain provisions on common carriers which has the effect of
making no distinction in the contract of carriage in the civil code and code of
commerce.
NCC did not repeal the CC but NCC instead makes suppletory provisions.

at least 4 copies = 2 to be taken by the captain one for himself(third copy) and
one for the ship agent(fourth copy) + one for the shipper and one for the consignee.
All copies of the bill of lading shall indicate to whom it was intended for and if two or
more copies are provided to the consignee, such circumstance and the fact that it
shall not be valid except in default of the first shall be stated.(707) The bill of lading
should be signed by the captain within 24 hours if not the shipper may demand for
the unloading of the cargo at the expense of the captain. (art 706). Contents of bill
of lading:
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Name of shipper
Name of consignee
Port of loading
Port of discharge
Name of the vessel
Description of cargo
Amount and place of payment of freight
Back conditions upon which the gods are carried

Functions of the bill of lading

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Evidence of the contract of affreightment between the shipper and the

shipowner. No particular form is however required.
Acknowledgment receipt of the cargo
Documents of title = gives the right to call for the delivery of the goods.
Negotiable documents mere possession of which is sufficient to give title

Limited liability stipulations

Generally stipulations relating to liability is limited to the goods appearing in the bill
of lading unless otherwise declared by the shipper to be of greater value.
Jurisdictional stipulations
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Stipulations providing that all disputes arising shall be deicide exclusively in

the court of the country wherein the contract is made cannot have the effect
of defeat the jurisdiction of Philippine courts.

Upon taking of the cargo a document signed by the mate showing that the cargo
was taken in is a mates receipt. This is usually done before the issuance of the bill

of lading but in most frequent practice the shipper prefer to have the bill of lading
first.

Negotiation of bill of lading:

A bill of lading if issued to order or bearer shall be so stated in the copies. (707) bills
of lading issued to bearer and sent to the consignee shall be transferrable by actual
delivery of the instrument and when issued to order by endorsement. Shall acquire
the right of transferor or indorser with regard to the merchandise. But if issued to a
specified person is not negotiable and only transferrable by a formal instrument of
assignment.
Article 709 and 710 speaks about the bill of lading as a contract between the
shipper and the captain or agent further it is their signatures that stands as proof
against either parties.
Articles 711 provides that it is not expected of the carrier to notify the consignee of
the arrival of the goods. The code of commerce requires the shipper to provide the
copy of the bill of lading to the consignee, and the latter must watch for the arrival
of the goods and take delivery thereof before unloading and shall be liable for
expenses of storage of the goods. The civil code however provides that in the
exercise of extraordinary diligence that the consignee be notified. Art 711 is now
only applicable for private carriers.
Art 352 353 354.
The bill of lading as a contract between the shipper and carrier binds both parties to
what is manifested on the said document except for falsities and material error in
the drafting of the document. As a contract after its compliance, the bill of lading
shall be returned to the carrier which shall signify of the termination of the
obligations and actions which the shipper against the carrier unless there is a claim
which shall so be reduced in writing.
In case of the lost of the bill of lading , the shipper must give the carrier receipt of
the goods which would have the effect of terminating or cancelling the contract.
The absence of a bill of lading though is a legal basis of a contract but its non
existence does not necessarily mean that there was no contract of carriage. The bill
of lading is just a written evidence of such contract and may the contract may be
proven by presenting legal proofs in support of the claim of the parties. Such legal
proofs may consist of a commercial invoice or insurance policy which are
complementary documents to the bill of lading.
The bill of lading if containing two irrecocible clauses must be interpreted against
the carrier infavor of the consignor.
Art 355. The carrier is responsible over the goods upon its receipt personally of by a
person charged for the purpose at a designated place.

Art 356. Refusal of package. If the carrier finds the merchandise unfit for
transportation, he may refuse and if the shipper insist the carrier may transport
them but be exempt from all responsibility and must appear on the bill of lading.
Art 357upon a well founded suspicion on the declaration made on the bill of lading,
the carrier may decide to investigate the merchandise in the presence of
wintnesses with the shipper of the consignee or otherwise if they should not attend
the esamination shall be made before a notary who will prepare a memorandum .
If the declaration of the shipper is true the carrier shall bear the expense of
repacking otherwise it shall be on the account of the shipper.
358. if no fixed period of delivery the merchandise shall be that period of the last
shipment of similar goods if not will be liable for dmages
Art 359. Route specified must be followed If no liable for losses except for force
majeure. And if in case of force majeure the shipper will pay for the additional
expenses incurred by the carrier.
Art 360, the shipper may change the consignee without changing the palce of
delivery. At the time of ordering the cange of consignee the bill of exchange be
surrendered and be issued another for the change of consignee.
Art 361 and 362. Carrier exempt form losses due to force majeure, fortuitous
events or the inherent nature and defect of the goods except when the carrier has
been negligent to take the necessary precautions and exception to the exception is
when there is fraud in the bill of lading by the shipper misdeclaring the
merchandise. Contingent measures may be taken by the carrier by selling the
merchandise asking judicial authority to do so.
Art 363 the carrier is under the obligation to deliver the merchandise in the same
condition it was received for transport. Failure to do so will pay for the value of that
which has not been delivered. The consignee may however refuse to receive the
merchandise if he proves that the merchandise would be useless without the rest of
the goods that was lost.
364 if there is dimunition of the value of the goods the carrier shall be responsible
for the difference only based on the judgment of experts.
Art 365. If as a consequence of the damage the goods are rendered useless, the
consignee is not bound to receive them and may demand for the value of the
merchandise at the current price.
If partially damaged the consignee may receive the undamaged merchandise and
demand payment for the rest.
1rt 712 and 713. The captain cannot change the destination of the merchandise
but may do so at the instance of the shipper. If the bill of lading is lost the captain
shall issue a new bill of lading due to loss or any other just cause with the same
consignment and security for the value be given.

Art 714. If the captain dies or should cease to hold his position, the shipper shall
have the right to demand for a new captain and a ratification of the first bill of
lading shall be made upon the return of all the copies of the latter. Examination of
the cargo shall so be done to ascertain the correctness of the bill of lading.
Expenses shall be borne by the ship agent. If no examination is made it is
understood that the new captain accepts what appears on the bill of lading.
Actions on bill of lading.
Summary action or to judicial compulsion according to the case for delivery of the
cargo and the payment of freightage and expenses.

Art 716. If several persons should present a lading issued to bearer or to order
endorsed in their favor, the merchandise shall be deliver the cargo to the person
presenting the first copy issued except when the latter one was issued on proof of
lost of the first. If lost and only the second or subsequent copies are presented to
the captain the latter must bring an action of interpleader to the court.