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Commercial and Taxation Laws
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Facts: ACO Freight Co., a common carrier, is contracted to deliver 40 crates of electronics from Manila to Cebu. In transit, a flood arises due to a heavy rainfall; the cargo area is submerged and all crates are ruined. ACO Freight Co. raises the defense of act of God (vis major). (a)Identify the defense and state the governing rule on defenses available to a common carrier. (b)Apply the defense to the facts and determine whether ACO Freight Co. is exonerated from liability; discuss any limitations to the defense and whether any other defense could be available.