Depano JD301
Transportation Reviewer
A contract whereby a person, natural or juridical, The SC in First Philippine Industrial Corporation
obligates to transport persons, goods, or both, vs. CA (1995) reiterated the following tests:
from one place to another, by land, air or water,
1. It must be engaged in the business of
for a price or compensation
carrying goods for others as a public
Classifications: employment and must hold itself out as ready to
engage in the transportation of goods generally
1. Common or Private
as a business and not as a casual occupation;
2. Goods or Passengers
2. It must undertake to carry goods of the
3. For a fee (for hire) or Gratuitous kind to which its business in confined;
3. No monopoly is favored (Batangas Trans. 2. Code of Commerce (Arts. 349, 379, 573-734,
vs. Orlanes, 52 PHIL 455); 580, 806-845) - suppletory
(1) Flood, storm, earthquake, lightning, or other Extraordinary liability when goods are stored in
natural disaster or calamity; warehouse:
(2) Act of the public enemy in war, whether The extraordinary liability of the common carrier
international or civil; continues to be operative even during the time
(3) Act of omission of the shipper or owner of the the goods are stored in a warehouse of the
goods; carrier at the place of destination, until the
consignee has been advised of the arrival of the
(4) The character of the goods or defects in the goods and has had reasonable opportunity
packing or in the containers; thereafter to remove them or otherwise dispose
(5) Order or act of competent public authority. of them.
Presumption: if the goods are lost, destroyed or Common carrier may be exempted from
deteriorated, common carriers are presumed to responsibility when:
have been at fault or to have acted negligently >natural disaster has been the proximate and
(except those mentioned in 1734) only cause of the loss
Unless: they prove that they observed >common carrier exercised due diligence to
extraordinary diligence as required in Article prevent or minimize loss before, during and after
1733. the occurrence of flood, storm or other natural
disaster
Elva T. Depano JD301
Transportation Reviewer
>The same duty is incumbent upon the common (2) Supported by a valuable consideration other
carrier in case of an act of the public enemy than the service rendered by the common
referred to in Article 1734, No. 2. carrier; and
Contribution of shipper or owner to the loss: If (1) That the goods are transported at the risk of
the shipper or owner merely contributed to the the owner or shipper;
loss, destruction or deterioration of the goods,
(2) That the common carrier will not be liable for
the proximate cause thereof being the
any loss, destruction, or deterioration of the
negligence of the common carrier, the latter
goods;
shall be liable in damages, which however, shall
be equitably reduced. (3) That the common carrier need not observe
any diligence in the custody of the goods;
Stipulation limiting the liability is valid provided: (7) That the common carrier is not responsible
for the loss, destruction, or deterioration of
A stipulation between the common carrier and
goods on account of the defective condition of
the shipper or owner limiting the liability of the
the car, vehicle, ship, airplane or other
former for the loss, destruction, or deterioration
equipment used in the contract of carriage.
of the goods to a degree less than extraordinary
diligence shall be valid, provided it be:
>The common carrier, without just cause, delays LAW OF THE COUNTRY
the transportation of the goods
The law of the country to which the goods are to
>changes the stipulated or usual route be transported shall govern the liability of the
common carrier for their loss, destruction or
>in case of the loss, destruction, or deterioration
deterioration.
of the goods.
SAFETY OF PASSENGERS
>An agreement limiting the common carrier's
liability for delay on account of strikes or riots is
valid.
COMMON CARRIER’S LIABILITY AS TO
PASSENGERS:
>A stipulation that the common carrier's liability A common carrier is bound to carry the
is limited to the value of the goods appearing in passengers safely as far as human care and
the bill of lading, unless the shipper or owner foresight can provide, using the utmost diligence
declares a greater value, is binding. of very cautious persons, with a due regard for
all the circumstances.
for negligence is valid, but not for wilful acts or if the common carrier's employees through the
gross negligence. exercise of the diligence of a good father of a
family could have prevented or stopped the act
The reduction of fare does not justify any
or omission.
limitation of the common carrier's liability.
CODE OF COMMERCE
LIABILITY OF COMMON CARRIER THROUGH ACTS
OF ITS EMPLOYEES: Common carriers are liable
for the death of or injuries to passengers through
Important Concepts:
the negligence or wilful acts of the former's
1. Bill of lading
employees, although such employees may have
2. Obligations of the carrier
acted beyond the scope of their authority or in 3. Right of abandonment
violation of the orders of the common carriers. 4. Notice of damage
This liability of the common carriers does not 5. Combined carrier agreement
cease upon proof that they exercised all the
diligence of a good father of a family in the BILL OF LADING
selection and supervision of their employees.
The written acknowledgment of receipt of
goods and agreement to transport them to a
specific place to a person named or to his order.
>The common carrier's responsibility prescribed
in the preceding article cannot be eliminated or It is not indispensable for the creation of a
limited by stipulation, by the posting of notices, contract of carriage. (Compania Maritima vs.
by statements on the tickets or otherwise. Insurance Company of North America, 12 SCRA
213)
fulfillment of that stipulation. (Art. 1311 (2), well as his own facilities for the purpose of
(Mendoza vs. PAL Inc.) transporting the goods from the city of the seller
to the city of the buyer, which bill of lading is
5. Acceptance of the bill of lading without
honored by the second and other interested
dissent raises the presumption that all the terms
carriers who do not issue their own bills.
therein where brought to the knowledge of the
shipper and agreed to by him and, in the absence 9. Custody – One wherein the goods are
of fraud or mistake; he is estopped from already received by the carrier but the vessel
thereafter denying that he assented to such indicated therein has not yet arrived in the port.
terms. (Notes and Cases on the Law on
10. Port – One which is issued by the carrier
Transportation and Public Utilities, Aquino, T. &
to whom the goods have been delivered, and the
Hernando, R.P. 2004 ed. p.261)
vessel indicated in the bill of lading by which the
goods are to be shipped is already in the port
where the goods are held for shipment.
Kinds:
Functions:
1. On board - issued when the goods have
been actually placed aboard the ship with very 1. Best evidence of the existence of the
reasonable expectation that the shipment is as contract of carriage of cargo (Art. 353)
good as on its way.
2. Document of title
2. Received - one in which it is stated that
3. Receipt of cargo
the goods have been received for shipment with
or without specifying the vessel by which the 4. Contract to transport and deliver goods
goods are to be shipped. as stipulated
3. Negotiable - one in which it is stated that 5. Symbol of the goods
the goods referred to therein will be delivered to
the bearer or to the order of any person named
therein. OBLIGATIONS OF THE CARRIER
4. Non-negotiable - One in which it is A. Duty to accept the goods
stated that the goods referred to therein will be
delivered to a specified person. GENERAL RULE: A common carrier cannot
ordinarily refuse to carry a particular class of
5. Clean – One which does not indicate any goods.
defect in the goods.
EXCEPTION: For some sufficient reason the
6. Foul – One which contains a notation discrimination against the traffic in such goods is
thereon indicating that the goods covered by it reasonable and necessary. (Fisher vs. Yangco
are in bad condition. Steamship Co. 31 Phil 1).
7. Spent ¬– One which covers goods that Instances when the carrier may validly refuse to
already have been delivered by the carrier accept the goods include the ff:
without a surrender of a signed copy of the bill.
1.) Goods sought to be transported are
8. Through – One issued by the carrier who dangerous objects, or substances including
is obliged to use the facilities of other carriers as dynamite and other explosives
Elva T. Depano JD301
Transportation Reviewer
2.) Goods are unfit for transportation d. If delay is without just cause, the
contract limiting the common carrier’s liability
3.) Acceptance would result in overloading
cannot be availed of in case of loss or
4.) Contrabands or illegal goods deterioration of the goods (Art.1747)
6.) Goods will be exposed to untoward danger RIGHT OF CONSIGNEE TO ABANDON GOODS
like flood, capture by enemies and the like
Instances:
7.) Goods like livestock will be exposed to
1. Partial non-delivery, where the goods
disease
are useless without the others (Art. 363);
8.) Strike
2. Goods are rendered useless for sale or
9.) Failure to tender goods on time. (Notes and consumption for the purposes for which they are
Cases on the Law on Transportation and Public properly destined (Art. 365); and
Utilities, Aquino, T. & Hernando, R.P. 2004 ed.
3. In case of delay through the fault of the
p.68)
carrier (Art. 371).
> In case of carriage by railway, the carrier is
exempted from liability if carriage is insisted
upon by the shipper, provided its objections are NOTICE OF DAMAGE (ART. 366)
stated in the bill of lading.
Requisites for applicability:
> However, when a common carrier accepts
1. Domestic/inter-island/coastwise
cargo for shipment for valuable consideration, it
transportation
takes the risk of delivering it in good condition as
when it was loaded. (PAL vs. CA) 2. Land/water/air transportation
B. Duty to deliver the goods 3. Carriage of goods
Not only to transport the goods safely but to the 4. Goods shipped are damaged
person indicated in the bill of lading. The goods
should be delivered to the consignee or any Rules:
other person to whom the bill of lading was a. Patent damage: shipper must file a claim
validly transferred or negotiated. against the carrier immediately upon delivery (it
may be oral or written)
Prescriptive Period
7. Preferred mortgage registered prior in time. 5. In case there is no total loss and the
vessel is not abandoned;
>Abandonment of the vessel is necessary to limit 2. In case of (2), the insurer must pay the
the liability of the shipowner. The only instance insured as if there was actual total loss of the
were abandonment is dispensed with is when vessel. 1. Transfer of ownership on the
the vessel is entirely lost (Luzon Stevedoring vs. goods from the shipper to the carrier.
CA 156 SCRA 169).
2. Carrier should pay the shipper the
market value of the goods at the point of
destination.
RIGHT OF SHIPOWNER OR SHIP AGENT TO
ABANDON VESSEL
RIGHT OF ABANDONMENT
Terms:
Instances
1. Interdiction of commerce – A
1. In case of civil liability from indemnities to
governmental prohibition of commercial
third persons (Art. 587);
intercourse intended to bring about an entire
2. Sec. 138, Insurance Code; cessation for the time being of all trade
whatever.
3. In case of leakage of at least ¾ of the contents
of a cargo containing liquids (Art. 687) 2. Blockade – A sort of circumvallation of a
place by which all foreign connection and
1. Partial non-delivery, where the goods
correspondence is, as far as human power can
are useless without the others (Art. 363);
effect it, to be cut off.
2. Goods are rendered useless for sale or
3. Embargo – A proclamation or order of a
consumption for the purposes for which they are
state, usually issued in time of war or threatened
properly destined (Art. 365); and
hostilities, prohibiting the departure of ships or
3. In case of delay through the fault of the carrier goods from some or all the ports of such state
(Art. 371). until further order.
C. Officers and crew of the vessel themselves from liability by abandoning the
vessel to the creditors. (Art. 587)
D. Supercargoes
E. Pilot
Duty of Ship Agent to Discharge the Captain and
Members of the Crew
SHIPOWNERS AND SHIP AGENTS
> If the seamen contract is not for a definite
Shipowner (proprietario) period or voyage, he may discharge them at his
discretion. (Art. 603)
> Person who has possession, control and
management of the vessel and the consequent > If for a definite period, he may not discharge
right to direct her navigation and receive freight them until after the fulfillment of their contracts,
earned and paid, while his possession continues. except on the following grounds:
2. Command the crew and direct the vessel 9. Hold in custody properties left by
to its port of destination; deceased passengers and crew members;
4. Stay on board during the loading and 1. Damages to vessel and to cargo due to
unloading of the cargo; lack of skill and negligence;
Elva T. Depano JD301
Transportation Reviewer
3. Losses and fines for violation of laws; 3. Change the course of the voyage on
consultation with the captain and the officers of
4. Damages due to mutinies;
the boat, following the decision of the captain in
5. Damages due to misuse of power; case of disagreement;
Engineers
Sailing Mate/First Mate Officers of the vessel but have no authority
> Second chief of the vessel who takes the place except in matters referring to the motor
of the captain in case of absence, sickness, or apparatus. When two or more are hired, one of
death and shall assume all of his duties, powers them shall be the chief engineer.
and responsibilities. (Art. 627) Duties:
> Duties: 1. In charge of the motor apparatus, spare
1. Provide himself with maps and charts parts, and other instruments pertaining to the
with astronomical tables necessary for the engines;
discharge of his duties;
Elva T. Depano JD301
Transportation Reviewer
2. Keep the engines and boilers in good Rules in case of Death of a Seaman
condition;
The seaman’s heirs are entitled to payment as
3. Not to change or repair the engine follows:
without authority of the captain;
1. If death is natural:
4. Inform the captain of any damage to the
a. compensation up to time of death if
motor apparatus;
engaged on wage
5. Keep an Engine Book;
b. if by voyage - half of amount if death
6. Supervise all personnel maintaining the occurs on voyage out; and full, if on voyage in
engine. (Art. 632)
c. if by shares - none, if before departure;
full, if after departure
5. Physical incapacity;
Parties:
If for a definite period, lessee cannot give up the Clauses Which May Be Included In a Charter
lease by paying a portion of the amount agreed Party
upon. Charterer may rescind charter party by Jason clause:
paying half of the freightage agreed upon.
A stipulation in a charter party that in case of a
If the leased property is sold to one who knows maritime accident for which the shipowner is not
of the existence of the lease, the new owner responsible by law, contract or otherwise, the
must respect the lease. The new owner is not cargo shippers, consignees or owners shall
compelled to respect the charter party so long as contribute with the shipowner in general
he can load the vessel with his own cargo. (Art. average. (Pandect of Commercial Law and
689) Jurisprudence, Justice Jose Vitug, 1997 ed.)
Rights and Obligations of Parties 4. Return of the vessel due to pirates, enemies or
bad weather;
Shipowner or ship agent:
5. Arrival at a port for repairs.
1. If the vessel is chartered wholly, not to
accept cargo from others; >At shipowner’s request
2. To observe represented capacity; 1. If the extra lay days terminate without the
cargo being placed alongside the vessel;
3. To unload cargo clandestinely placed
2. Sale by the owner of the vessel before loading
4. To substitute another vessel if load is by the charterer;
less than 3/5 of capacity;
CHARTERER:
portion of the ship’s capacity the latter LOAN ON BOTTOMRY AND RESPONDENTIA
contracted for but failed to occupy.
A real, unilateral, aleatory contract, by virtue of
4. Lay Days - days allowed to charter which one person lends to another a certain
parties for loading and unloading the cargo. amount of money or goods on things exposed to
maritime risks, which amount, with its earnings,
5. Extra Lay Days – days which follow after
is to be returned if the things are safely
the lay days have elapsed.
transported, and which is lost if the latter are
lost.
EXCEPTIONS:
2. Loss due to the barratry on the part of An extraordinary or accidental expense incurred
the captain; during the voyage in order to preserve the cargo,
vessel or both, and all damages or deterioration
3. Loss due to the fault or malice of the
suffered by the vessel from departure to the port
borrower;
of destination, and to the cargo from the port of
4. The vessel was engaged in contraband; loading to the port of consignment. (Art. 806)
and
The person whose property has been saved
5. The cargo loaded on the vessel be must contribute to reimburse the damage
different in from that agreed upon. caused or expense incurred if the situation
constitutes general average.
Classes:
Concurrence of Marine Insurance and Loan on
Bottomry/Respondentia 1. Particular or Simple Average
the two vessels was at fault, both vessels bear circumstances attending such occurrence, for
their respective damage, but both should be the purpose of recovering losses and damages.
solidarily liable for damage to the cargo of both
Excuses for not filing protest: 1) where the
vessels.
interested person is not on board the vessel; and
4. Third vessel at fault- 2) on collision time, need not be protested. (Art.
836)
The third vessel will be liable for losses and
damages. (Art. 831) Cases applicable:
No liability. Each bears its own loss. (Art. 830) 2. Arrival under stress (Art. 612(8));
The doctrine of res ipsa loquitur applies in case a 3. Shipwrecks (Arts. 612(15), 843);
moving vessel strikes a stationary object, such as
4. Where the vessel has gone through a
a bridge post, dock, or navigational aid. (Far
hurricane or when the captain believes that the
Eastern Shipping v. CA, Luzon Stevedoring vs. CA)
cargo has suffered damages or averages (Art.
Even if the cause of action against the common 624).
carrier is based on quasi-delict, the defense of
Who makes: Captain
due diligence in the selection and supervision of
employees is unavailing in case of a maritime tort When made: within 24 hours from the time the
resulting in collision. It is not a civil tort governed collision took place.
by the Civil Code but a maritime one governed by
Arts. 826-839 of the Code of Commerce. (Manila Before whom made: competent authority at the
Steamship vs. Insa Abdulhaman) point of collision or at the first port of arrival, if
in the Philippines and to the Philippine consul, if
the collision took place abroad. (Art. 835)
Doctrine of Last Clear Chance and Rule on
Contributory Negligence cannot be applied in
collision cases because of Art.827 of the Code of SHIPWRECK
Commerce. (Notes and Cases on the Law on It is the loss of the vessel at sea as a
Transportation and Public Utilities, Aquino, T. & consequence of its grounding, or running against
Hernando, R.P. 2004 ed.) an object in sea or on the coast. It occurs when
the vessel sustains injuries due to a marine peril
rendering her incapable of navigation.
MARITIME PROTEST
If the wreck was due to malice, negligence or
Condition precedent or prerequisite to recovery lack of skill of the captain, the owner of the
of damages arising from collisions and other vessel may demand indemnity from said captain.
maritime accidents. (Art. 841)
It is a written statement made under oath by the The rules on collision or allision, as may be
captain of a vessel after the occurrence of an pertinent, can equally apply to shipwrecks.
accident or disaster in which the vessel or cargo
is lost or damaged, with respect to the
Elva T. Depano JD301
Transportation Reviewer
The carriage of goods from the warehouse or The transportation must be:
pier to the holds of the vessel. (Chief of Staff vs.
1. Water/maritime transportation;
CIR)
2. for the carriage of goods; and
As understood in the port business, the term
consists of the handling of cargo from the hold of 3. overseas/international/foreign (from
the ship to the dock, in case of pier-side foreign port to Philippine port).
unloading; or to a barge, in case of unloading at
sea. (Anglo-Fil Trading Corp. vs. Lazaro) It can be applied in domestic sea transportation
if agreed upon by the parties. (Clause paramount
The loading on the ship of outgoing cargo is also or paramount clause)
part of stevedoring work. (Ibid.)
IMPORTANT FEATURES:
CONTAINERIZATION/ “SAID-TO-CONTAIN”/
“SHIPPER’S LOAD AND COUNT” SYSTEM 1. Amount of carrier’s liability
“Loss or Damage” as applied to the COGSA IV. WARSAW CONVENTION OF 1929 (WC)
contemplates a situation where no delivery at all
was made by the shipper of the goods because
the same had perished, gone out of commerce,
PURPOSE: To protect the emerging air
or disappeared in such a way that their existence
transportation industry and to secure the
is unknown or they cannot be recovered. Thus, it
uniformity of recovery by the passengers.
is inapplicable in case of misdelivery or
conversion. (Ang vs. American Steamship APPLICABILITY
Agencies Inc.) and damage arising from delay or
The transportation must be:
late delivery (Mitsui O.S.K. Lines Ltd. vs. CA). In
such instance the, Civil Code rules on 1. International transportation;
prescription shall apply.
2. Air transportation; and
EXCEPTION: Agreement to a higher limit > In PanAm v. IAC, the WC was applied as regards
the limitation on the carrier’s liability, there
being a simple loss of baggage without any
2. Checked-in baggage improper conduct on the part of the officials or
employees of the airline or other special injury
GENERAL RULE: $20 per kilogram sustained by the passenger.
EXCEPTION: In case of special declaration of
value and payment of a supplementary sum by
consignor, carrier is liable to not more than the > In KLM Royal v. Tuller, the WC has invariably
declared sum unless it proves the sum is greater been held inapplicable, or as not restrictive of
than actual value. the carrier’s liability, where there was
satisfactory evidence of malice or bad faith
3. Hand-carried baggage attributable to its officers and employees.
$1000/passenger (Alitalia vs. IAC)
4. Goods to be shipped
2. Prescriptive period
Thus, the WC does not operate as an exclusive
Action must be filed within 2 years from:
enumeration of the instances of an absolute limit
of the extent of liability. It does not preclude the a. date of arrival at the destination
application of the Civil Code and other pertinent
b. date of expected arrival
local laws. It does not regulate or exclude
liability for other breaches of contract by the c. date on which the transportation
carrier, or misconduct of its employees, or for stopped. (Art. 29)
some particular or exceptional type of damage.
(Alitalia vs. CA)
Elva T. Depano JD301
Transportation Reviewer
In United Airlines vs. Uy the two-year remained and did not cease even when the
prescriptive period was not applied where the breach occurred not on its own flight but on that
airline employed delaying tactics. of another airline which had undertaken to carry
the passengers to one of their destinations.
(China Airlines vs. Chiok)
RULE IN CASE OF VARIOUS SUCCESSIVE
CARRIERS
JURISDICTION
1. Carriage of passengers
At the option of the plaintiff, the action for
GENERAL RULE: Action is filed only against the
damages may be filed in the:
carrier in which the accident or delay occurred.
a. Court of domicile of the carrier;
EXCEPTION: Agreement or contract whereby the
first carrier assumed liability for the whole b. Court of its principal place of business;
journey.
c. Court where it has a place of business
2. Carriage of baggage or goods through which the contract has been made; or
a. Passenger or consignor can file an action d. Court of the place of destination. (Art.
against the first carrier and the carrier in which 28(1))
the damage occurred
NOTE: It is the passenger’s “ultimate
b. Passenger or consignee can file an action destination” not “an agreed stopping place” that
against the last carrier and the carrier in which determines the country where suit is to be filed.
the damage occurred.
The forum of action provided in Art. 28(1) is a
These carriers are jointly and severally liable. matter of jurisdiction rather than of venue.
(Art. 30) (Santos III vs. Northwest; 2A C.J.S.)
recovered from actual peril or loss, as in cases of it, it is derelict and a change of their intention
shipwreck, derelict or recapture. and an attempt to return will not change its
nature (Erlanger & Galinger vs. Swedish East
Requisites:
Asiatic Co. Ltd.).
1. Valid object of salvage;
If it is clear that the intention to return is slight,
2. Object must have been exposed to the salvage which was done thereafter is
marine peril (not perils of the ship); considered valid. (Notes and Cases on the Law on
Transportation and Public Utilities, Aquino, T. &
3. Services rendered voluntarily (neither an Hernando, R.P. 2004 ed. p. 616)
existing duty nor out of a pre-existing contract);
4. Ligan or Lagan – goods cast into the sea tied to RULES ON SALVAGE REWARD
a buoy, so that they may be found again by the 1. The reward is fixed by the RTC judge in
owners (p.173, Judge Diaz). the absence of agreement or where the latter is
Persons who have no right to a reward for excessive. (Sec. 9)
salvage: 2. The reward should constitute a sufficient
1. Crew of the vessel saved; compensation for the outlay and effort of the
salvors and should be liberal enough to offer an
2. Person who commenced Salvage in spite of inducement to others to render services in
opposition of the Captain or his representative; similar emergencies in the future.
3. In accordance with Sec. 3 of the Salvage Law, 3. If sold (no claim being made within 3
a person who fails to deliver a salvaged vessel or months from publication), the proceeds, after
cargo to the Collector of Customs. deducting expenses and the salvage claim, shall
Derelict – a ship or her cargo which is go to the owner; if the latter does not claim it
abandoned and deserted at sea by those who are within 3 years, 50% of the said proceeds shall go
in charge of it, without any hope of recovering it, to the salvors, who shall divide it equitably, and
or without any intention of returning to it. the other half to the government. (Secs. 11-12)
The intention of those in charge must be 4. If a vessel is the salvor, the reward shall
ascertained. If those in charge left with the be distributed as follows:
intention of returning, or of procuring assistance, a. 50% to the shipowner;
the property is not derelict, but if they quitted
the property with the intention of finally leaving b. 25% to the captain; and
Elva T. Depano JD301
Transportation Reviewer
4. Applicant must have sufficient financial 6. Grant of special permits to make extra or
capability to undertake the proposed services special trips in territories specified in the
and meeting the responsibilities incident to its certificate;
operation. 7. Uniform accounting system and
POWERS REQUIRING PRIOR NOTICE AND furnishing of annual reports;
HEARING 8. Compelling compliance with the laws
1. Issuance of CPC or CPCN; and regulations.
5. Capitalize any franchise in excess of the Presupposes a situation when two interested
amount actually paid to the Government; persons apply for a certificate to operate a public
utility in the same community over which no
6. Sell, alienate, mortgage or lease person has as yet granted any certificate. If it
property, certificates or franchise. turns out, after the hearing, that the
circumstances between the two applicants are
more or less equal, then the applicant who
Under Sec. 20(g) of C.A. No. 146, the sale, etc. applied ahead of the other, will be granted the
may be negotiated and completed before the certificate.
approval by the proper authority. Its approval is
not a condition precedent to the validity of the
contract. The approval is necessary only to RATE-FIXING POWER
protect public interest.
The rate to be fixed must be just, founded upon
conditions which are fair and reasonable to both
PRIOR OPERATOR/OLD OPERATOR RULE the owner and the public.
The rule allowing an existing franchised A rate is just and reasonable if it conforms to the
operator to invoke a preferential right within the following requirements:
Elva T. Depano JD301
Transportation Reviewer
KABIT SYSTEM
Effects: