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Commercial and Taxation Laws
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Question
OceanLink Carriers, a common carrier, is contracted to transport 40 crates of high-value electronic components by sea from Manila to Cebu. In transit, a volcanic eruption ejects an ash plume; heavy rains follow, flooding the cargo hold and destroying all crates. OceanLink raises the defense of act of God (vis major). Which statement best states the governing rule on defenses available to a common carrier and the likely outcome under these facts?