7/28/2019 Caltex v. Sulpicio Lines Digest

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7/28/2019 Caltex v. Sulpicio Lines Digest

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• Under a demise or bareboat charter on the other hand, the charterer mans thevessel with his own people and becomes, in effect, the owner for the voyage or service stipulated, subject to liability for damages caused by negligence.

• If the charter is a contract of affreightment, which leaves the general owner in

possession of the ship as owner for the voyage, the rights and the responsibilitiesof ownership rest on the owner. The charterer is free from liability to third personsin respect of the ship.

• Clearly, as a mere voyage charterer, Caltex had the right to presume that theship was seaworthy as even the Philippine Coast Guard itself was convinced of its seaworthiness. All things considered, we find no legal basis to hold petitioner liable for damages.