Bill of Lading Flashcards
What is a Bill of Lading?
A bill of lading may be defined as a written acknowledgment of the receipt of goods and an agreement to transport and to deliver them at a specified place to a person named therein or on his order.
What are the three (3) main characteristics of a bill of lading?
a. A bill of lading is considered a receipt for the goods shipped to the common carrier.
b. It also serves as the contract by which three (3) parties, namely, the shipper, the carrier, and the consignee undertake specific responsibilities and assumed stipulated obligations.
c. It is the evidence of the existence of the contract of carriage providing for the terms and conditions thereof.
If the bill of lading is accepted without any objection, what does this imply?
The acceptance of the bill without dissent raises the presumption that all the terms therein were brought to the knowledge of the shipper and agreed to by him and, in the absence of fraud or mistake, he is estopped from thereafter denying that he assented to such terms. This rule applies with particular force where a shipper accepts a bill of lading with full knowledge of its contents and acceptance under such circumstances makes it a binding contract.
If a shipper, without changing the place of delivery changes the consignment or consignee of the goods (after said goods have been delivered to the carrier), under what condition will the carrier be required to comply with the new orders of the
shipper?
If the shipper should change the consignee of the goods, without changing their destination, the carrier shall comply with the new order provided the shipper returns to the carrier the bill of lading, and a new one is issued showing the novation of the contract. All expenses for the change must be paid by the shipper
When should the shipment be delivered?
The oft-repeated rule regarding a carrier’s liability for delay is that in the absence of a special contract, a carrier is not an insurer against delay in transportation of goods. When a common carrier undertakes to convey goods, the law implies a contract that they shall be delivered at destination within a reasonable time, in the
absence of any agreement as to the time of delivery. But where a carrier has made an express contract to transport and deliver properly within a specified time, it is bound to fulfill its contract and is responsible for any delay, no matter from what cause it may have arisen. This result logically follows from the well-settled rule that where the law creates a duty or charge, and the default in himself, and has no remedy over, then his own contract creates a duty or charge upon himself, he is bound to make it good notwithstanding any accident or delay by inevitable necessity because he might have provided against it by contract. It has been held that a delay in the delivery of the goods spanning a period of two (2) months and seven (7) days is beyond the realm of reasonableness.
The Saludo brothers and sisters (Saludos) together with Pomierski and Son Funeral Home of Chicago brought the remains of Saludos’ mother to Continental Mortuary Air Services (CMAS) which booked the shipment of the remains from Chicago to San Francisco by Trans World Airways (TWA) and from San Francisco to Manila with Philippine Airlines (PAL).
The remains were taken to the Chicago Airport, but it turned out that there were two (2) bodies in the said airport. Somehow the two (2) bodies were switched, and the remains ofthe Saludo* mother was shipped to Mexico instead.
The shipment was immediately loaded on another PAL flight and it arrived the day after the expected arrival. Petitioners filed a claim for damages in court
Is the carrier liable for the delay in the delivery of the cargo?
No, common carriers are not obligated by law to carry and to deliver merchandise, and persons are not vested with the right to prompt delivery, unless such common carriers previously assume such obligation. Said rights and obligations are created by a specific contract entered into by the parties.
(bale wala nakabutang didto nga mahatag nila ni on a specific date) - airway bill indicated that no time is fixed for the completion of the carriage
Based on the same set of facts (case of Saludo), were the airline companies liable for damages for the switching of the two caskets?
No, the switching happened while the cargo was still with CMAS, well before the same was place in the custody of the carrier. Verily, no amount of inspection by the carrier could have guarded against the switching that had already taken place. Or, granting that they could have opened the casket to inspect its contents, carriers had no means of ascertaining whether the body therein contained was indeed that of Saludos’ mother except, possibly, ifthe body was that of a male person and such fact was visually apparent upon opening the casket. However, to repeat, the carriers had no authority to unseal and open the same nor did they have any reason or justification to resort thereto.
Nonetheless, the facts show (in this case) that the Saludos’ right to be treated with due courtesy in accordance with the degree of diligence required by law to be exercised by every common carrier was violated by TWA and this entitles them, at least, to nominal damages from TWA alone. Articles 2221 and 2222 of the Civil Code make it clear that nominal damages are not intended for indemnification ofloss suffered but for the vindication or recognition of a right violated or invaded.
May a common carrier be held liable despite non-issuance of a bill of lading?
Yes. There is a complete and consummated contract of carriage once the cargo is delivered to the carrier and the latter takes possession thereof. The delivery of a bill of lading is not a requisite for the perfection of the contract of carriage. As such, the common carrier is liable despite non-issuance of a bill of lading.
May the consignee obtain delivery of the goods even without the surrender of the bill of lading?
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. The surrender of the original bill of lading is not a condition precedent for a common carrier to be discharged of its contractual obligation. If surrender of the original bill of lading is not possible, acknowledgment of the delivery by signing the delivery receipt suffices.
When may the consignee refuse to accept the goods?
According to the Code of Commerce, if the goods are delivered but arrived at the destination in damaged condition, the remedies to be pursued by the consignee depend on the extent of damage on the goods. In case the damaged portion of the goods can be segregate from those delivered in good condition, the consignee may reject those in damaged condition and accept merely those which are m good condition. If the effect of damage on the goods consisted mere y of diminution in value, the carrier is bound to pay only the difference
between its price on that day and its depreciated value as provi e under Article 364 of the Code of Commerce
