Flashcards Studio
Practice bar questions and get clear AI feedback on every answer.
Question
Paramount Freight Co., Inc. operates a fixed Manila–Cebu freight service and advertises itself as a common carrier for hire. It signs a contract with NovaTech Industries, Inc. to transport 3,000 high-density memory modules from Manila to Cebu, with a bill of lading naming NovaTech as consignee. While in Paramount's custody at its Cebu warehouse, a warehouse fire destroys the shipment. Paramount asserts that, as a common carrier, it is not strictly liable for losses caused by force majeure and that its liability can be exempted by defenses. NovaTech sues for damages. (a) Identify whether Paramount Freight Co., Inc. is a common carrier or a private carrier under Philippine law. (b) If Paramount is a common carrier, state the governing liability rule for loss or damage to goods in its custody and the burden of proof for invoking any defenses. (c) Apply the rule to the facts: is Paramount liable to NovaTech for the loss of the memory modules? Explain your answer and discuss which defenses, if any, might or might not succeed.