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Commercial Code (Cap. 13) Consolidated

CHAPTER 13

COMMERCIAL CODE

To amend and consolidate the Laws relating to Trade.

ORDINANCES XIII of 1857, XV, XVI, XVII, XVIII and XIX of 1858 and II of 1898, and

ACTS: XIV and XXIX of 1933* - as amended by Ordinances: III of 1863, VII of 1868, V of

1904; Acts: XV of 1924, XXX of 1927, XII of 1929; Ordinances: XXX of 1931, XXXVII of 1939 and VII of 1941 - Consolidated.

The Code was subsequently amended by Ordinances: XVIII of 1944, XIII of 1946, X and

XXV of 1962; Legal Notices 4 of 1963 and 46 of 1965; Acts: XXXI of 1966, XI and XLVI of

1973 and LVIII of 1974; Legal Notice l48 of 1975; Acts: XXII of 1976, XLIX of 1981, IX and

XVI of 1982, XIII of 1983, XXXVII of 1988, VIII and XXXIII of 1990, XXIV of 1995, XVI of

2000, XXXI of 2002, IX of 2003 and XXII of 2005; Legal Notices 233 of 2005, 181 of 2006 and

407 of 2007; Acts II and XIII of 2008, and XXIII of 2009.

*(2nd October, 1857)* (21st December, 1859)† (26th April, 1898)‡ (12th May, 1939)§

(3rd August, 1933)**

*See Proclamation No. XXI of the 2nd of October, 1857.

†See Proclamation No. XII of the 2lst of December, 1859.

‡See Proclamation No. II of the 26th of April, 1898.

§See Proclamation No. XXV of the 12th of May, 1939.

**See Act No. V of 1927 omitted under the Statute Law Revision Ordinance, 1936, and Government Notice.

No. 266 of the l8th of July, 1933

ARRANGEMENT OF CODE

Articles

Short Title 1

PART I
Of Trade In General

Preliminary Provisions 2-3

Title I. Of Traders and Acts of Trade 4-12

Title II. Of the Duties of Traders 13-37

Sub-title I. Of Trade Books 13-26

Sub-title IA. Of Late Payments in Commercial Transactions 26A-26E

Sub-title II. Of Publication of Marriage Contracts 27-31

Sub-title III. Of Limits of Competition 32-37

Title III. Of the Register of Traders 38-48

Title IV. Of Persons Auxiliary to Traders 49-109

Sub-title I. Of Agency in general 49-56

Sub-title II. Of Managers 57-66

Sub-title III. Of Commercial Travellers and Salesmen 67-69

Sub-title IV. Of Commercial Agents 70-78J

Sub-title V. Of Brokers 79-95

Sub-title VI. Of Commission Merchants 96-109

Title V. Of Commercial Obligations 110-118

Title VI. Of the Chamber of Commerce, Enterprise and Industry 119-121

Title VII. Of Bills of Exchange, Promissory Notes, and Drafts or

Cheques on Bankers or Cashiers 123-263

Sub-title I. Of Bills of Exchange 123-259

Of the Form of a Bill of Exchange 123-129

Of the Duties of the Drawer 130-135

Of Endorsement 136-147

Of Acceptance 148-157

Of Acceptance for Honour or by Intervention 158-167

Of Joint and Several Liability 168

Of Surety par aval 169-171

Of Maturity and Payment 172-208

Of Payment for Honour or by Intervention 209-217

Of the Rights and Duties of the Holder 218-246

Of Protest 247-251

Of Re-exchange 252-259

Sub-title 1I. Of Promissory Notes, and Drafts or Cheques on Bankers or

Cashiers

260-263

Title VIII. Of the Contract of Account Current 264-272

PART II
Of Maritime Trade and of Navigation

Articles

Title I. Of the Contract of Affreightment 273-337

Sub-title I. General Provisions 273-281

Sub-title 11. Of the Rights and Duties of the Person letting the Vessel and the Freighter

282-311

Sub-title III. Of the Dissolution of Contracts of Affreightment 312-320

Sub-title IV. Of Bills of Lading 321-327

Sub-title V. Of Passengers 328-337

Title III. Of Marine Insurance 361-440

Sub-title I. Of the Contract of Marine Insurance 361-385

Sub-title II. Of the Rights and Obligations of the Insurer and of the

Assured

386-412

Sub-title III. Of Abandonment 413-440

Title IV. Of Average and of Jettison and Average Contribution 441-468

Sub-title I. Of Average 441-451

Sub-title II. Of Jettison and Average Contribution 452-468

PART III
Of Bankruptcy

PART IV
Of Prescription And Inadmissibility Of Action In Certain Commercial Matters, Of The Jurisdiction Of The Civil Court, First Hall, And Of
Commercial Fees

Title I. Of Prescription and Inadmissibility of Action in certain

Commercial Matters

541-546

SCHEDULE

Part I Secondary Activities of Commercial Agents. Part II Commissions and Fees.

Part III Fees of Public Brokers. Part IV Fees of Surveyors.

1. This Code may be cited as the Commercial Code.

PART I

OF TRADE IN GENERAL

Short title.

PRELIMINARY PROVISIONS

Preliminary provisions added by Act XXX of

1927.

2. The commercial law relates to traders and to acts of trade done by any person, even though not a trader.

3. In commercial matters, the commercial law shall apply:

Provided that where no provision is made in such law, the usages of trade or, in the absence of such usages, the civil law shall apply.

Persons and acts affected.

Applicability of law.

Title I

OF TRADERS AND ACTS OF TRADE

Provisions of this Title substituted by Act XXX of 1927.

4. The term "trader" means any person who, by profession, exercises acts of trade in hi s ow n n a m e , an d i n cl ud es an y commercial partnership.

5. The following are acts of trade:

(a) any purchase of movable effects for the object of re- selling or letting them, whether in their natural state or after being worked or manufactured; any sale or lease of movable effects, in their natural state or after being worked or manufactured, when the purchase thereof has been made with the object of re-selling or letting such effects;
(b) any banking transaction;
(c) any transaction relating to bills of exchange; (d) any time-bargain in securities;
(e) any transaction relating to commercial partnerships or to shares in such partnerships;
(f) any transaction relating to vessels and navigation;
(g) any undertaking relating to supplies, manufacture, construction, carriage, insurance, deposits, public entertainment and advertising;

Definition of

“trader”.

Acts of trade.

(h) any purchase and any re-sale of immovable property, when made with the object of commercial speculation, and any building enterprise;
(i) any transaction ancillary to or connected with any of the above acts.

Other commercial matters.

Presumption as to nature of act done by trader.

Persons who may carry on trade.

Minors. Amended by: XLVI. 1973.108; XXIV.1995.362.

6. Obligations arising from collision of vessels, assistance or salvage in case of wreck, stranding or abandonment, from jettison or average are likewise commercial matters.

7. Every act of a trader shall be deemed to be an act of trade, unless from the act itself it appears that it is extraneous to trade.

8. Any person capable of contracting, may trade, unless the law precludes him from carrying on trade.

9. A minor who has attained the age of sixteen years, may trade and shall be deemed to be a major with regard to obligations contracted by him for purposes of trade, if -

(a) he has previously been authorized to that effect by the parent to whose authority he is subject, by means of a public deed registered in the Civil Court, First Hall; or, where both parents are dead, interdicted or absent, he has been authorized by the judge of the Civil Court, First Hall; and
(b) a summary of the deed of authorization or of the decree aforementioned has been published by means of a notice in the Exchange, in the Government Gazette and in another newspaper.

Powers of minors who are traders.

Applicability of ss.

9 and 10 to minors

non-traders.

Revocation of authority by parent. Amended by:

XLVI. 1973.108; XXIV.1995.362.

10. Minors who are traders authorized as aforesaid can by reason of their trade charge, hypothecate and even alienate their property, without any of the formalities prescribed by the civil law.

11. The provisions of articles 9 and 10 shall apply to minors not being traders, with respect to acts declared to be acts of trade.

12. (1) The authority granted to a minor by the parent vested wi th parental auth orit y to carry o n trad e may, at any tim e, be revoked by the parent exercising such authority by means of a public deed duly served on the minor.

(2) The deed of revocation shall be registered in the Civil Court, First Hall, and pu blished by m e ans of a n o tice in the Exchange, in the Government Gazette and in another newspaper.
(3) Such revocation shall in no case injuriously affect the rights acquired by a third party, even in regard to transactions which are still in the course of negotiation.
Title II

OF THE DUTIES OF TRADERS

Sub-title I

OF TRADE BOOKS

Provisions of this Title substituted by Act XXX of 1927.

13. Every trader is bound to keep the following books: (a) a waste-book;
(b) a journal;
(c) a cash-book;
(d) an inventory-book; (e) a ledger.

14. Every trader shall immediately enter in the waste-book every commercial transact ion whi ch h e mak es, sho win g al l th e conditions or terms to which it is subject.

15. The journal must show day by day all the transactions concluded by the trader, his debts and credits, his negotiations, acceptances and endorsements of bills, and, generally, all that he receives or pays for any cause whatsoever; and must show month by month the sums disbursed for household expenses.

16. The cash-book must show in detail, day by day, all the sums received and those paid out by the trader, compared with the journal; it must be balanced at least once a month.

17. (1) The trader shall make every year an inventory containing a description and valuation of his whole estate, assets and liabilities, whatever may be their nature and origin.

(2) The annual inventory shall be closed with a balance and with a statement showing the profits and losses, and shall be copied out year by year in the aforesaid inventory-book.

18. The ledger shall show an accurate and up-to-date record of all transactions classified as personal and impersonal accounts and so kept as to render possible the drawing up of a true and correct picture of the state of affairs of the business or trade at any given time.

19. Besides the books mentioned in the foregoing articles of th is sub-title, traders may keep other books and ot her papers wherefrom the extent and the pr ogress of their business shall appear in a more detailed manner.

20. Every trader shall keep, by order of date, the original of all letters, invoices and tel e grams received by him, and a copy, whether hand-written or type-written, or a press-copy, of all letters, invoices and telegrams forwarded by him.

Obligatory trade books.

Amended by:

XIII. 1946.2.

Waste

-book.

Journal.

Cash-book.

Inventory-book.

Ledger. Added by: XIII. 1946.3.

Optional trade books.

Duty of trader to keep letters, etc., received or forwarded by him.

Formalities to be observed in the keeping of trade books.

Amended by: XXXVII. 1939.2.

21. (1) All books which traders are required to keep, with the exception of the waste-book, shall be numbered and kept, by order of date, without blanks or marginal notes.

(2) Whenever it shall be necessary to make any cancellation, this shall be made in such a manner as to leave the cancelled words legible.
(3) The provisions of this article shall not apply to such books as were already in use before the first day of January ni nete en hundred and twenty-eight.

Proof by books. Cap. 12.

22. (1) Trade books, whether obligatory or optional, shall constitute evidence in terms of the Code of Organization and Civil Procedure.
(2) Nevertheless, it shall not be lawful to divide the contents of such books.

Power of court to order production of correspondence, etc.

23. (1) In the course of an action, the court may, at the instance of one o f th e par ties or of i t s ow n mo tio n, or der th e production of all correspondence touching the question at issue, and of the trade books in order to abstract therefrom such portion only as relates to the controversy.

(2) In such case, a qualified accountant chosen by agreement between the parties or, in default, nominated ex officio by the court, may be appointed in order to ascertain, without removing the books and in the presence of the person producing them, whether such books are in order, and to abstract therefrom such entries as relate to the controversy.
(3) The opposite party may in counter-evidence produce his own books kept according to law.

General examination of books.

24. In cases of winding up or liquidation of a partnership, or of pr op er ty i n co mmu ni ty o r o f successio n s, th e cou r t sh al l hav e power to allow the examination of all the books subject to such conditions and formalities as the court may in each case prescribe.

Retailers. 25. Retail traders are not bound to enter in their books the sales made for ready cash: it will be sufficient for them to enter each day the total amount of the sales made on such day.

Period for preserving books, etc.

26. Traders are bound to keep their trade books, letters, invoices and telegrams received by them, for a period of five years to be reckoned, in the case of trade books, from the date of the last entry made in each book.

Definitions for the purposes of this Sub-Title.

Added by:

L.N. 233 of 2005.

Sub-title IA

OF LATE PAYMENTS IN COMMERCIAL TRANSACTIONS

26A. For the purposes of this Sub-Title -

"commercial transactions" means transactions between traders, between traders and public authorities and between members of the liberal professions and traders or public authorities, which lead to the del i very of goo ds or to th e pro v ision of services for
remuneration;
"enforceable title" mea n s a ny de c r ee, judgment or order for payment issued by a Court by law or other competent authority, whether for immediate payment or payment by instalments which permits the creditor to have his claim against the debtor collected by me ans of forc ed execution. It in cl ud es an y su c h d e cre e , judgment or order for payment that is provisionally enforceable and remains so even if the debtor appeals against it;
"pub lic auth ori t y" mean s th e Gov e rn men t o f M a lta, Local Councils and other public bodies where a body is considered to be a public body when it:
- is established for the specific purpose of meeting needs in the general interest, not being of an industrial or commercial nature,
- has legal personality, and
- is financed for the most part by the State, or Local Councils or other public bodies, or is subject to management supervision by those bodies, or has an administrative, managerial or supervisory board more than half of whose members are appointed by the State, Local Councils, or other public bodies;
"undertaking" means any organisation acting in the course of its independent economic or professional activity, even where it is carried on by a single person;
"late payment" means a payment wh ich i s st il l d u e aft e r t h e contractual or statutory period established for payment;
"retention of title" means the contractual agreement according to which the seller retains title to the goods in question until the price has been paid in full;
"reference rate" means the central intervention rate established by the Governor of the Central Bank of Mal t a in terms of the powers granted to him in Part IIA of the Central Bank of Malta Act in force on the first calendar day of the half year duri ng which interest becomes due and which for the purposes of this Sub-Title shall apply for the following six months;
"int erest rate" means the referen c e rate in force on the f i rst calendar day of the half year during which interest becomes due, plus seven percent (7%).
26B. The provisions of this Sub-Title shall, notwithstanding the prov isi o ns of a n y o t h e r l a w, ap pl y to p a y m ent s m a d e as remuneration for commercial transactions, irrespective of whether they are carried out between private bodies, public authorities or both, including commercial transactions to which members of the liberal professions are a party, with effect from the 1st July, 2005:
Provided that this Sub-Title shall not regulate transactions of tr aders, p ubl ic au tho r it ies o r o f mem b ers of th e li beral p r ofessions wit h co nsumers, inte rest i n co nnection with other payments not regulated by this Sub-Title, such as payments under

Cap. 204.

Scope of this Sub- Title.

Added by:

L.N. 233 of 2005.

any provision of this Code or of any other law in respect of cheques an d b ill s of ex ch an ge or paym ents made as comp en sati on for damages including payments from insurance companies.

Interest in case of late payment. Added by:

L.N. 233 of 2005.

26C. (1) Interest payable in accordance with this Sub-Title shall become payable from the day following the date or the end of the period for payment fixed in the contract.

(2) If the date or period for payment is not fixed in the contract, interest shall become payable automatically without the necessity of a reminder:
(a) thirty days following the date of receipt by the debtor of the invoice or an equivalent request for payment; or
(b) if the date of the receipt of the invoice or the equivalent request for payment is uncertain, thirty days after the date of receipt of the goods or services; or
(c) if the debtor receives the invoice or the equivalent request for payment earlier than the goods or the services, thirty days after the receipt of the goods or services; or
(d) if a procedure of acceptance or verification, by which the conformity of the goods or services with the contract is to be ascertained, is provided for by law or in the contract and if the debtor receives the invoice or the equivalent request for payment earlier or on the date on which such acceptance or verification takes place, thirty days after the latter date.
(3) The creditor shall be entitled to interest for late payment to the extent that:
(a) he has fulfilled his contractual and legal obligations;
and
(b) he has not received the amount on due time, unless the debtor is not responsible for the delays.
(4) The rate of interest for late payment which the debtor is obliged to pay, shall be the interest rate as defined in article 26A, unless otherwise specified in the contract. The reference rate in force on the first calendar day of the half year during which interest becomes due shall apply for the following six months.
(5) Unless the debtor is not responsible for the delay, the creditor shall be entitled to claim reasonable compensation from t h e debto r for all relevant recovery costs in cu rred through the debtor ’s late payment.
(6) Any agreement on the date for payment or on the consequences of late payment which is not in accordance with the provisions of subarticles (2), (3) and (4) shall give rise to a right to claim for damages if when all circumstances of the case including good commercial practice and the nature of the product are considered, it is grossly unfair to the creditor:
Provided that in determining whether an agreement is gr os sly unfair to the credit or, it shall be taken, inte r alia , into account whether the deb tor has any objective reason to deviate from t h e prov isio ns of sub a rt icl e s (2), (3) an d (4 ). If such an agreement is determined to be grossly unfair, the terms established in this Sub-Title shall apply unless the First Hall of the Civil Court upon the application of any party interested determines different conditions which are fair and which are to apply.

26D. In the case of a commercial transaction consisting of the sale of movables, the seller shall be entitled to retain title of the same until the price thereof is fully paid if such retention of title has been expressly agreed to in writing between the buyer and the seller before the delivery of the said movables.

26E. The provisions of this Sub-Title shall not apply to:

(a) debts that are subject to insolvency proceedings instituted against the debtor;
(b) contracts that have been concluded prior to the 1st May,
2004;
(c) interest payments of less than four euro and sixty-six cents (4.66).

Sale of moveables.

Added by:

L.N. 233 of 2005.

Exclusions.

Added by:

L.N. 233 of 2005.

Amended by:

L.N. 407 of 2007.

Sub-title II

OF PUBLICATION OF MARRIAGE CONTRACTS

27. (1) Every notary receiving a marriage contract or any deed v a ry in g such co nt ract bet w een per s on s any on e of w h o m is described in the deed as a trader, shall, within fifteen days from the date of such contract or deed, file with the Registrar of Courts of Malta or with the Registrar of Courts of Gozo, according to the residence of the party described as a trader, a note containing the following particulars:

(a) the date of the contract or deed and the name of the notary receiving such contract or deed;
(b) the name of the party described as a trader; (c) the amount of the dowry and of the dower.
(2) The registrar shall cause a copy of the note aforesaid to be p o sted up at the Ex change and pub lish e d in the Go vernment Gazette.

Publication of marriage contracts. Amended by: XXXVII.1939.3; XXIV.1995.362.

28. (1) The Registrar of Courts of Malta and the Registrar of Courts of Gozo and Comino shall keep an Index, in alphabetical order, of the notes filed with them respectively under the provisions of the last preceding article.

(2) The Index shall be open to inspection by the public.

Index of notes to be kept by registrar.

Added by: XXXVII.1939.4. Amended by:

XXIV.1995.362.

Penalty. Amended by: XXXVII. 1939.5; L.N. 46 of 1965; LVIII.1974.68; XIII.1983.5; VIII.1990.3; XXIV.1995.362. Amended by:

L.N. 407 of 2007.

Where spouse engages in trade after marriage. Amended by: XXXVII.1939.6.

29. Every notary who fails to comply with the provisions of article 27 shall be liable, on conviction, to a penalty not exceeding twenty-three euro and twenty-nine cents (23.29), at the suit of any interested party, or of the Attorney General, by summons before the Civil Court, First Hall, or before the Court of Magistrates (Gozo) in its superior commercial jurisdiction, as the case may be.

30. (1) Where any one of the spouses engages in trade after the marriage, or although already engaged in trade has not been so described in the marriage contract, the obligations mentioned in article 27 shall devolve upon such spouse.

(2) If such spouse fails to carry out the said obligations, such spouse shall be liable to the penalty prescribed in the last preceding article and may, moreover, in the event of bankruptcy, be adjudged a fraudulent bankrupt.

Duty of registrar in case of demand for separation of property between spouses.

Amended by: XXXVII.1939.7.

31. (1) The registrar shall cause every demand for the sep a rat i on o f pro p erty bet w een spo u ses an y o n e of wh om i s described in the Index mentioned in article 28 as a trader, to be published in the Government Gazette.

(2) The registrar shall likewise cause the judgment on the said demand to be published in the Government Gazette, and shall enter a reference to such judgment in the said Index.

Sub-title III

OF LIMITS OF COMPETITION

Unlawful use of names, marks or distinctive devices. Amended by:

XVI. 2000.103.

Cap. 416.

Permitted comparative advertising. Added by:

II. 2008.58.

Cap. 378.

32. Traders shall not make use of any name, mark or distinctive device capable of creating confusion with any other name, mark or distinctive device lawfully used b y others, even t h o ugh su ch ot her n a m e , m a rk o r di sti n ct ive de vic e b e n o t registered in terms of the Trademarks Act, nor may they make use of any firm name or fictitious name capable of misleading others as to the real importance of the firm.

32A. (1) Traders shall not engage in any comparative advertising.

(2) Notwithstanding the preceding subarticle, comparative advertising shall, as far as the comparison is concerned, be permitted when the following conditions are met:
(a) it is not misleading within the meaning of article 32B or within the meaning of articles 51C and 51D of the Consumer Affairs Act;
(b) it compares goods or services meeting the same needs or intended for the same purpose;
(c) it objectively compares one or more material, relevant, verifiable and representative features of those goods
and services, which may include price;
(d) it does not discredit or denigrate the trade marks, trade names, other distinguishing marks, goods, services, activities, or circumstances of a competitor;
(e) for products with designation of origin, it relates in each case to products with the same designation;
(f) it does not take unfair advantage of the reputation of a trade mark, trade name or other distinguishing marks of a competitor or of the designation of origin of competing products;
(g) it does not present goods or services as imitations or replicas of goods or services bearing a protected trade mark or trade name;
(h) it does not create confusion among traders, between the advertiser and a competitor or between the advertiser ’s trade marks, trade names, other distinguishing marks, goods or services and those of a competitor.
(3) Any comparison referring to a special offer shall indicate in a clear and unequivocal way the date on which the offer ends or, where appropria te , tha t the speci al o f f e r is s u bj ec t t o th e availability of the goods and services, and where the special offer has not yet begun the date of the period during which the special offer shall apply. "Special offer" in this subarticle refers to the price of the goods or services or any other specific condition under which the goods or services will be supplied.
(4) For the purposes of this article "comparative advertising" means any advertising which explicitly or by implication identifies a competitor or goods or services offered by a competitor.

32B. (1) Traders shall not engage in any form of misleading advertising.

(2) An advertisement is misleading if in any way, including its presentation, it deceives or is likely to deceive the persons to whom it is addressed or whom it reaches, and if by reason of its deceptive nat ure, it i s li kel y to affect t hei r econ om ic beh avi ou r or i s on e which for those reasons, injures or is likely to injure a competitor of the person whose interests the advertisement seeks to promote.
(3) In determining whether an advertisement is misleading account shall be taken of all its features, and in particular of any information it may have about -
(a) the characteristics of goods or services, including their availability, nature, execution, composition, method and date of manufacture or provision, fitness for purpose, uses, quantity, specification, geographical or commercial origin or the results to be expected from their use, or the results and material features of tests or checks carried out on the goods or services;
(b) the price or the manner in which the price is

Misleading advertising. Added by: II. 2008.58.

calculated, and the conditions on which the goods are supplied or the services provided;
(c) the nature, attributes and rights of the advertiser, including his identity and assets, his qualifications and ownership of industrial, commercial or intellectual property rights or any awards and distinctions made to him.

False indication of origin of goods.

33. Traders shall not make use of any false indication of origin of the goods:

Pro v ided that a desig n atio n which accordi ng to commercial usage is considered as a common designation, shall not be deemed to be a false indication.

Spreading of news prejudicial to other traders.

34. (1) Traders shall not, for the purpose of competition, spread news capable of prejudicing the business or trade carried on by other persons.

(2) Moreover, they shall not make use of honours, patents, medals, prizes or other distinctions to which they have no claim or which have been obtained for some other branch of business or trade.

Subornation of other traders’ employees.

Certificates of honesty or competency contrary to facts.

Interpretation.

Added by:

II. 2008.59.

Penalties. Amended by: XIII.1983.5; VIII.1990.3; XXIV.1995.362; L.N. 407 of 2007; II. 2008.60.

35. Traders shall not suborn persons employed in the trade or business carried on by a competitor for the object of knowing or exploiting his customers.

36. A trader shall not, in the exercise of his trade or business, issue certificates of honesty or competency contrary to the facts as k now n t o h i m and capab le o f i m p o sin g u pon th e go od fai t h of others.

36A. For the purposes of this subtitle, "advertising" means any form of representation, including a catalogue, a circular and a price list, about a trade, business, craft or profession in order to promote the supply or transfer of goods or services, immovable property, rights or obl igati ons and "adv ertisement" shall be con s trued accordingly.

37. (1) Any trader who contravenes any of the prohibitions contained in articles 32 to 36 inclusively, shall, at the choice of the injured trader, be liable either to an action for damages and interest or to a penalty. The injured trader may, further, demand that every thing done contrary to the said prohibitions be destroyed, or that any other remedy be applied capable, according to circumstances, of removing the act constituting the unlawful competition.

(2) Any action for damages and interest brought under this article shall be governed by the rules of the civil law.
(3) The penalty, however, shall be fixed by the Civil Court, First Hall, or by the Court of Magistrates (Gozo) in its superior commercial jurisdiction at the suit of the injured trader, and shall not be less than four hundred and sixty-five euro and eighty-seven cents (€465.87) nor more than four thousand, six hundred and fifty- eight euro and seventy-five cents (€4,658.75), having regard to the se riousness of the fact, to its c ontinuance, to th e malice of the
offending party and to all other particular circumstances of each case. Such penalty shall be paid to the injured trader in settlement of all his claims for damages and interest.
Title III

OF THE REGISTER OF TRADERS

Provisions of this Title substituted by Act XXX of 1927.

38. (1) Every trader and every commercial partnership may, if they so desire, be registered in a special book to be called "Register of Traders" which shall be kept under the authority of the Civil Court, First Hall.

(2) There shall be kept under the authority of the Court of Magistrates (Gozo) in its superior commercial jurisdiction another register for traders residing in Gozo and for commercial partnerships having their place of business there; such register, however, shall be deemed to form an integral part of that kept under the authority of the Civil Court, First Hall.

Register of traders. Amended by: VIII.1990.3; XXIV.1995.362.

39. (1) Every person is entitled to be registered in the register mentioned in the last preceding article, provided -

(a) he is actually engaged in trade or in any branch of trade;
(b) he is discharged, if he had previously been adjudged bankrupt;
(c) he has not been convicted of any of the crimes affecting public trust or against property provided for in the Criminal Code;
(d) he produces a certificate from the Council of the Chamber of Commerce, Enterprise and Industry as to the existence in his respect of the conditions mentioned in paragraphs (a), (b) and (c).
(2) Where a commercial partnership is to be registered, the conditions mentioned in paragraphs (b), (c) and (d) of subarticle (1) of this article must exist in respect of every one of the partners with unlimited liability.

Qualifications for registration. Amended by:

XIII. 2008.2.

Cap. 9.

40. Any person desiring to be registered in the aforesaid register shall make an appli catio n before one of the courts me nt io ne d in art i c le 3 8 , as th e case m a y b e , p r od uci n g all th e requisite documents, and, in the case of a commercial partnership, a co py of the statement p ublished in the Govern ment Gazette in terms of sub-article (1) of article 192 of the Commercial Partner-

ships Ordinance * , sh ow i n g t h e d a t e of r e g i str a ti on of t h e partnershi p an d t h e date on wh ich th e relati ve cert i ficate of

Procedure for registration. Amended by: XVI.1982.2.

Cap. 168.

*Repealed by Act XXV of 1995 (Chapter 386).

Grant or refusal of application for registration. Amended by:

XXII. 2005.79.

registration was issued.
41. (1) The judge or magistrate, as the case may be, shall grant or refuse the application by a decree in camera, ordering in the first case, the registrar to enter applicant’s name in the register and, in the second case, that the applicant be served with a copy of the decree.
(2) The decree refusing the application shall contain the reasons for such refusal and shall be subject to appeal, by sworn application, to the Court of Appeal within eight days from the day of the service above-mentioned.

Powers of court. 42. It shall be lawful for the court of first or second instance to examine the applicant on oath and to require him to produce all such e v idence as it s h all deem neces sary for dealing with the application.

Cancellation from register.

Amended by:

XIII. 2008.2.

43. (1) The name of a trader or of a commercial partnership, after having been duly entered in the register above-mentioned, shall be liable to cancellation if the tr ader dies or retires from business or if the partnership is dissolved, or if the one or the other is adjudged bankrupt, or if the trader or any of the partners with unlimited liability is convicted of any of the crimes mentioned in paragraph (c) of sub-article (1) of article 39.
(2) The demand for the cancellation shall be made before the competent court, by means of an applicati on, by any interested party or by the President of the Council of the Chamber of C o mmerce, Enterprise and Industry, a g ainst the person or partnership concerned or his or its lawful representative.
(3) The decree given on such application is also subject to appeal within the same time and in the same manner as prescribed in sub-article (2) of article 41.

Contents of register of traders. Amended by: XXIV.1995.362; XXXI. 2002.256.

44. (1) Every entry in the register above-mentioned shall bear a progressive number, and shall set out the name and surname of the trader or of every partner with unlimited liability, as the case may be, the trade name, the firm or partnership name under which the trade is carried on, the place of residence and the trade or the particular branch of trade carried on.

(2) Every registration in Gozo shall, without delay, be communicated, by means of a legal copy, to the registrar in Malta who shall enter such registration in the register of traders, allotting to it a progressive num ber. Such n u mber sh al l, wi thout delay, be communicated to the registrar in Gozo who shall forthwith enter the same in the register kept under the authority of that court.

Certificate of registration.

Register open to inspection.

45. It shall be lawful for any trader or commercial partnership, at his or its own expense, to demand from the registrar a certificate of his or its registration.

46. The register of traders shall be open to inspection by every person, free of charge.

47. (1) Default of registration shall not operate so as to restrain any person from engaging in trade. Penalty for unlawful use of term implying registration.

(2) Nevertheless, whosoever, without being duly registered or after his name has been struck off the register of traders, shall, in his correspondence or in any other paper relating to his business, make use of any designation calculated to lead others to believe that he is duly registered, shall be liable to a penalty of not less than eleven euro and sixty-five cents (11.65) and not exceeding two hundred and thirty-two euro and ninety-four cents (232.94), at the sui t of t h e Attorn ey General, by swo r n appli c atio n before t h e competent court of commercial jurisdiction.

Default of registration not to debar person from engaging in trade. Amended by:

L.N. 46 of 1965; LVIII.1974.68;

XIII.1983.5; XXIV.1995.360;

XXII. 2005.79; L.N. 407 of 2007.

48. In the register of traders there shall be a special part for public brokers and another for commercial agents.

Parts of register for public brokers and commercial agents.

Title IV

OF PERSONS AUXILIARY TO TRADERS

Sub-title I

OF AGENCY IN GENERAL

49. In the absence of any agreement, law or custom to the contrary, mercantile agency is governed by the prov isions contained in Title XVIII of Part II of Book Second of the Civil Code so far as applicable, with the exception of article 1861:
Provided that where a mercan tile agenc y invol ves al so th e ob ligation on the p a rt of the agent of performing particular services, then it shall also be governed by the provisions of the Employment and Industrial Relations Act, so far as applicable.

Provisions of this Title substituted by Act XXX of 1927.

Law governing mercantile agency. Amended by: XLIX.1981.6. Cap.16.

Cap. 452.

50. All acts done by the agent on behalf of the principal, within the scope of his authority, produce directly their effect whether in favour of or against the principal.

51. For the purpose of establishing the validity and the effects of the act done by the agent, regard shall be had to the capacity of the principal and to the intention of the agent:

Pr ovi ded that wh ere at th e tim e of the con c lusio n of the transaction the principal is in bad faith, he cannot set up the good faith of the agent.

Effects of acts done by agent within scope of his authority.

Rules regarding the validity and effects of acts done by agent.

52. Where the law requires that an act be expressed in writing, the authority given to an agent to do such act must be conferred in writing.

53. Saving any custom or agreement to the contrary, the power to buy shall not be deemed to include the power to buy on credit, and the power to sell shall not be deemed to include the power to sell on credit.

Form of agent’s authority.

Agent’s powers.

towards third parties.

Cap .9.

information as to the extent of the authority conferred on him by the principal and, if the third party so requires, the agent is bound to deliver to such third party a declaration duly signed by him to the ef fect that a given transactio n is comp ri sed wit h i n th e sai d authority.
(2) Any false statement wilfully made by the agent in the said de claration shall be considered as a forg ery of a commercial document within the meaning of article 183 of the Criminal Code, and shall be liable to the punishment therein prescribed, without prejudice to any action for damages and interest.

How principal withdrawing agency, may free himself from liability towards third parties. Amended by: VIII.1990.3; XXIV.1995.362.

Transaction of business by agent with himself.

55. Where the agency has been conferred in general terms, the principal who withdraws the agency, may relieve himself from all liability towards third parties for any further acts done by the agent, by giving notice of such withdrawal by means of a note filed in the Civil Court, First Hall, or in the Court of Magistrates (Gozo) in its superior commercial jurisdiction, as the case may be, and causing such note to be published in the Government Gazette and in another newspaper, and affixed in the Exchange.

56. It shall not be lawful for the agent to transact with himself a business of his principal, whether on his own behalf or on behalf of any other person, directly or through the medium of a third party, without the authority or ratification of the principal.

Sub-title II

OF MANAGERS

Definition of manager.

Who may be manager. Amended by: XLVI.1973.108.

Manager’s authority may be express or implied.

57. A manager is a person who is placed, personally and permanently, in char ge of th e b u si ness or of a branch of the business of the principal in one or more fixed places.

58. Any person, whatever his or her age, may be a manager.

59. (1) The authority to act as manager may be express or implied.

(2) In the first case, where the principal desires to limit the author ity conf erred on th e manager in such a way as to raise a presu m pti on t h at th e l imitati ons imp osed are known to th ird parties, he must file in the one or the other of the courts mentioned in article 55 a note showing in detail all such limitations, and cause such note to be affi xed in the Exchange and published in t h e Government Gazette and in a nother newspaper , possibly a commercial newspaper.
(3) In the second case, the authority to act as manager shall in regard to third parties be deemed to be general and to comprise all matters pertaining and necessary to the exercise of the business or
branch of business in respect of which it has been conferred, unless the principal proves that such third parties knew of the aforesaid limitations at the time the transaction was concluded.

60. The principal shall be liable for the acts of the manager and f o r t h e ob li gat i o n s con t r acted b y hi m wi th in t h e li mi ts of t h e business or branch of business which has been entrusted to him.

61. A loan (mutuum) made to the manager is not binding on the principal except when the object for which it has been made has be en stated, and such object actually rela te s to th e busin es s or branch of business in charge of which the manager has been placed.
62. (1) The manager shall always deal in the name of the principal, and when sign ing shall , besides his own n a m e and surname, indicate the name and surname or the firm name of the principal, with the clause per procura or some equivalent clause.
(2) In default of such indication, the manager shall be personally liable; but in such case, third parties may bring, also aga i nst the principa l, any ac tion arising from the acts of the manager pertaining and necessary to the exercise of the business with which he is charged.

Liability of principal.

Loan made to manager.

Duties of manager.

63. (1) The manager shall not, either on his own behalf or on behalf of others, without the express consent of the principal, carry on or have any interest in any business of the same nature as that in charge of which he has been placed.

(2) If the manager acts in contravention of this prohibition, the principal may, at his option, either take action for damages and interest or demand payment of any profits made by the manager in any transaction entered into in violation of his duty.

Manager may not transact business

on his own or other party’s behalf.

64. The manager may sue or be sued in the name of the principal for any obligations arising out of the acts done by him in the exercise of the business or branch of business with which he is charged, even if the principal is present in Malta.

65. The manager is jointly and severally liable with the principal for the observance of the provisions contained in Title II of thi s Par t o f t his Co de in r eg ard to all m att ers r elatin g t o th e business or branch of business with which he is charged.

66. The determination of the manager ’s authority shall be made public with the same formalities prescribed in sub-article (2) of article 59, even where the grant of the authority had not been so made known.

Manager may sue or be sued.

Liability of manager. Amended by: XVI.1982.2.

Determination of manager’s authority.

Sub-title III

OF COMMERCIAL TRAVELLERS AND SALESMEN

67. (1) Commercial travellers shall produce to the customers with whom they deal in the name of the principal, the instrument creating their authority and defining its limitations.

Duties of commercial travellers.

the price of goods, unless they personally deliver the same, nor can they gran t time for pay m ent o r allo w discou nt in respect of transactions concluded by them.
(3) They may receive complaints addressed to the principal, and may sue or be sued in the name of the principal in respect of obligations arising out of transactions concluded by them in the name of the principal himself.

Duties of salesmen.

68. (1) Salesmen entrusted with wholesale or retail sales, are empowered to receive within the warehouse or place of business, the price of goods sold by them, unless the receipt of payments is entrusted to some other person as cashier.

(2) They cannot receive such price outside the warehouse or place of business, unless they produ ce the p o wer giving t h em authority so to do or deliver a receipt signed by the principal.

Commercial travellers and salesmen may not exercise same trade as principal. Amended by: XIII.1983.5; VIII.1990.3;

L.N. 407 of 2007.

69. (1) Commercial travellers and salesmen shall not, without express authority, exercise the same trade as the principal, either on their own behalf or on behalf of others, and shall not communicate information about customers to the detriment of the principal.

(2) Whosoever acts in contravention of this prohibition shall be liable for damages and interest; and shall moreover be liable to a penalty of not less than eleven euro and sixty-five cents (11.65) and not exceeding two hundred and thirty-two euro and ninety-four cents (232.94), on proceedings taken at the suit of the principal, before the Court of Magistrates.

Sub-title IV

OF COMMERCIAL AGENTS

Application of this

Part.

Substituted by:

IX. 2003.3.

70. (1) The relations between commercial agents and their principals and the activities of commercial agents in Malta are governed by the provisions of this sub-title.

(2) This sub-title shall not apply to:
(a) commercial agents whose activities are unpaid;
(b) commercial agents when they operate on commodity exchanges or in the commodity market; and
(c) persons whose activities as commercial agents are secondary.
(3) The provisions of Part I of the Schedule shall apply in order to determine the persons whose activities as commercial agents are to be deemed secondary for the purposes of subarticle (2)(c).
70A. In this sub-title:
"commercial agent" means a person not being a person in the employment of th e prin cipal, who has co ntinuin g au thority t o negotiate the sale or purchase of goods or services on behalf of another person (the principal), or to negotiate and conclude such transactions on behalf and in the name of that principal, but does not include:

Definition of commercial agent, etc.

Added by: IX. 2003.3. Amended by:

XIII. 2008.2.

(i) a person who in his capacity as an officer of a company or association is empowered to enter into commitments binding the company or association;
(ii) a partner who is lawfully authorised to enter into commitments binding on his partners;
(iii) a person acting as an insolvency practitioner in Malta or in an equivalent position in any other jurisdiction;
"co m m i ssi on" m eans any part of t h e rem uneration of a commercial agent whic h varies w i t h th e nu mber or val u e o f business transactions;
"Minister" means the Minister responsible for commerce;
"regulatory authority" m eans the Council of the Chamber of
Commerce, Enterprise and Industry;
"restraint of trade clause" means an agreement or a clause in an agreement restricting the business activities of a commercial agent following the termination of the agency contract.

71. (1) Any person desiring to act as a commercial agent, whether alone or in partnership with any other person, shall notify the regulatory authority requesting registration, within thirty days of undertaking this activity.

(2) In order to be registered as a commercial agent with the r e g u lato ry au tho r ity an app licant shall ap ply in wr iti ng to the authority in such form as the regulatory authority shall prescribe, containing the full name and surname, age, private and business addresses of the applicant and such other particulars concerning his business or occupation as the regulatory authority shall require. In the case of a person applying to be registered as a comme rc ial agent in partnership, a reference shall be made in the application to the statement published in the Gazette in terms of the Companies Act showing the date of registration of the partnership and the date on which the relative certificate of registration was issued.
(3) The regulatory authority shall not accept an application for registration to act as a commercial agent from any person who is in the employment of the Government of Malta or of any financial instit ution, or from any person holding a warrant to practise a professi on i n Malt a and actu ally practi si ng such pro fessi on, or from stockbrokers or from any person who, whether in Malta or abroad, has been found guilty of fraudulent bankruptcy.
(4) Notice of any registration under this article shall be published in the Gazette. In the month of January of each year, a

Commercial agents. Amended by:

XXXVII. 1939.8; L.N. 46 of 1965;

IX. 1982.2. Substituted by:

IX. 2003.3; XXIII. 2009.18.

Cap. 386.

compl e te list o f regi stratio ns then in fo rce sh all likewise b e published in the Gazette.
(5) Any registration carried out under this article may be withdrawn or suspended by the regulatory authority, if the person registered -
(a) is convicted of any crime against property; (b) is adjudged bankrupt;
(c) accepts employment under the Government of Malta, or with any financial institution, or becomes the holder of a warrant to practise a profession and actually practises such profession or becomes a stockbroker;
(d) is proved, to the satisfaction of the court, not to be a fit and proper person to act as a commercial agent.
(6) Such withdrawal or suspension shall be published in the
Gazette.

Power of the Minister to prescribe fee for registration. Amended by: XXXVII. 1939.9.; L.N. 46 of 1965; LVIII. 1974.68. Substituted by: IX. 2003.3;

XXIII. 2009.18.

Penalties. Amended by: XXXVII. 1939.10; VII. 1941.2. Substituted by:

IX. 2003.3. Amended by:

L.N. 407 of 2007. Substituted by: XXIII. 2009.18.

72. The Minister after consulting the regulatory authority may, by regulation, prescribe the fee to be charged by the regulatory authority in respect of a registration to act as a commercial agent under the provisions of the la st preceding article . Any such regulation may prescribe the payment of an annual fee in addition to the fee payable on the initial registration and may provide that in default of payment of any such annual fee, the registered person or partnership shall removed from the register.

73. Without prejudice to the provisions of article 71(1), any person who, without being registered, represents himself to be, or acts or undertakes to act as a commercial agent, shall be liable:

(a) on a first conviction to a fine (multa) not exceeding two thousand and five hundred euro (€2,500); and
(b) on a second or subsequent conviction, to imprisonment for a term not exceeding three months or to a fine (multa) not exceeding five thousand euro (€5,000).

No grant or renewal of registration pending settlement of fine.

Added by: IX. 2003.3.

Substituted by: XXIII. 2009.18.

Duties of commercial agent to his principal. Substituted by:

IX. 2003.3.

73A. Where any court has imposed a fine under this sub-title, and such fine has not been paid, the regulatory authority shall not grant or renew the registration on the expiry thereof until such time as the payment of the fine is effected.

74. (1) In performing his activities a commercial agent shall look after the interests of his principal and act dutifully and in good faith.

(2) In particular, a commercial agent shall -
(a) make proper efforts to negotiate and, where appropriate, conclude the transactions he is instructed to take care of;
(b) communicate to his principal all the necessary information available to him;
(c) comply with reasonable instructions given by his principal.

75. (1) In his relations with his commercial agent a principal shall act dutifully and in good faith.

(2) In particular, a principal shall -
(a) provide his commercial agent with the necessary documentation relating to the goods concerned;
(b) obtain for his commercial agent the information necessary for the performance of the agency contract, and in particular notify his commercial agent within a reasonable period where he anticipates that the volume of commercial transactions will be significantly lower than that which the commercial agent could normally have expected.
(3) A principal shall, in addition, inform his commercial agent within a reasonable period of his acceptance or refusal of, and of any non-execution by him of, a commercial transaction which the commercial agent has procured for him.

Duties of a principal to his commercial agent. Substituted by:

IX. 2003.3.

76. (1) The parties may not derogate from articles 74 and 75.

(2) The law applicable to the contract shall govern the consequence of breach of the rights and obligations under articles
74 and 75 above.

Prohibition on derogation from articles 74 and 75 and consequence of breach. Substituted by:

IX. 2003.3.

77. (1) Without prejudice to the application of any enactment or rule of law concerning the level of remuneration of commercial agents, in the absence of any agreement as to remuneration between the parties, a commercial agent shall be entitled to the remuneration that commercial agents appointed for the goods forming the subject of his agency contract are customarily allowed in the place where he carries on his activities and, in the absence of such customary practice, a commercial agent shall be entitled to such reasonable remuneration taking into account all the aspects of the transaction to be agreed to between the parties or in default by the court.

(2) Where the remuneration of a commission agent is not fixed in whole or in part as a commission the provisions of articles 77A to 77F shall not apply.

Form and amount of remuneration in absence of agreement. Substituted by:

IX. 2003.3.

77A. (1) A commercial agent shall be entitled to commission on commercial transactions concluded during the period covered by the agency contract -

(a) where the transaction has been concluded as a result of his direct or indirect intervention; or
(b) where the transaction is concluded with a third party whom he has previously acquired as a customer for transactions of the same kind.
(2) A commercial agent shall also be entitled to commission on transactions concluded during the period covered by the agency

Entitlement to commission on transactions concluded during agency contract. Added by:

IX. 2003.3.

Entitlement to commission on transactions concluded after agency contract has terminated. Added by:

IX. 2003.3.

contract where he has an exclusive right to a specific geographical area or to a specific group of customers and where the transaction has been entered into with a customer in that area or group.

77B. Subject to article 77C, a commercial agent shall be entitled to commission on commerc ial transactions conclude d after the agency contract has terminated if -

(a) the transaction is mainly attributable to his efforts during the period covered by the agency contract and if the transaction was entered into within a reasonable period after that contract terminated; or
(b) in accordance with the conditions mentioned in article
77A above, the order of the third party reached the
principal or the commercial agent before the agency contract terminated.

Apportionment of commission between new and previous commercial agents. Added by:

IX. 2003.3.

77C. (1) A commercial agent shall not be entitled to the co mmission refer r ed to in ar ticle 77 A i f th at commissio n is payable, by virtue of article 77B, to the previous commercial agent, unless it is equitable bec a use of the circums t a n ces for the commission to be shared between the commercial agents.

(2) The principal shall be liable for any sum due under subarticle (1) to the person entitled to it in accordance therewith, and any sum which the other commercial agent receives to which he is not entitled shall be refunded to the principal.

When commission due and date for payment.

Added by: IX. 2003.3.

77D. (1) Commission shall become due as soon as, and to the extent that, one of the following circumstances occurs:

(a) the principal has executed the transaction; or
(b) the principal should, according to his agreement with the third party, have executed the transaction; or
(c) the third party has executed the transaction.
(2) Commission shall become due at the latest when the third party has executed his part of the transaction or should have done so if the principal had executed his part of the transaction, as he should have.
(3) The commission shall be paid not later than on the last day of the month following the quarter in which it became due, and, for the purposes of this sub-title, unless otherwise agreed between the parties, the first quarter period shall run from the date the agency contract takes effect, and subsequent periods shall run from that date in the third month thereafter.
(4) Any agreement to derogate from subarticles (2) and (3) to the detriment of the commercial agent shall be void.

Extinction of right to commission. Added by:

IX. 2003.3.

77E. (1) The right to commission can be extinguished only if and to the extent that it is established that the contract between the third party and the principal will not be executed for a reason not attributable to the fault of the principal.

(2) Any commission which the commercial agent has already
received shall be refunded if the right to it is extinguished.
(3) Any agreement to derogate from the provisions of subarticle (1) to the detriment of the commercial agent shall be void.

77F. (1) The principal shall supply his commercial agent with a statement of the commission due, not later than the last day of the month following the quarter in which the commission has become due, and such statement shall set out the basis used in calculating the amount of the commission.

(2) A commercial agent shall be entitled to demand that he be provided with all the information (and in particular an extract from the books) which is available to his principal and which he requires in order to check the amount of the commission due to him.
(3) Any agreement to derogate from subarticles (1) and (2)
shall be void.
(4) Nothing in this article shall remove or restrict the effect of, derogate from the provisions of any enactment or rule of law which grants to an agent the right to inspect the books of a principal.

Periodic supply of information as to commission due and right of inspection of principal’s books. Added by:

IX. 2003.3.

78. (1) The commercial agent and principal shall each be entitled to receive from the other, on request, a signed written document setting out the terms of the agency contract including any terms subsequently agreed.

(2) Any purported waiver of the right referred to in paragraph
(1) above shall be void.

Right to signed written statement of terms of agency contract. Substituted by:

IX. 2003.3.

78A. An agency contract for a fixed period which continues to be performed by both parties after that period has expired shall be deemed to be converted into an agency contract for an indefinite period.

78B. (1) Where an agency contract is concluded for an indefinite period either party may terminate it by notice.

(2) The period of notice shall be -
(a) one month for in first year of the contract;
(b) two months after the commencement of the second year but before the commencement of the third year;
(c) three months after the commencement of the third year;
and the parties may not agree on any shorter periods of notice.
(3) The parties may agree on longer periods than those laid down in subarticle (2 ), provided that the peri od of not ice to be given by the principal may not be shorter than that to be given by the commercial agent.
(4) Unless otherwise agreed by the parties, the end of the period of notice must coincide with the end of a calendar month.
(5) The provisions of this article shall also apply to an agency

Conversion of agency contract after expiry of fixed period. Added by:

IX. 2003.3.

Minimum periods of notice for termination of agency contract. Added by:

IX. 2003.3.

Savings with regard to immediate termination. Added by:

IX. 2003.3.

cont ract fo r a fix e d peri od w h i c h i n vi rtu e o f ar ticl e 7 8 A is converted into an agency contract for an indefinite period and for the purposes of calculating the period of no tice the term of the fixed period contract shall be deemed to be part of the agency contract for an indefinite period.

78C. This sub-title shall not affect the application of any enactment o r rul e of l a w whi c h p r o v i d es f o r th e imm ed iat e termination of the agency contract -

(a) because of the failure of one party to carry out all or part of his obligations under that contract; or
(b) where exceptional circumstances arise.

Entitlement of commercial agent to indemnity or compensation on termination of agency contract. Added by:

IX. 2003.3.

78D. (1) Subject to subarticle (7) and to article 78E, the commercial agent shall be entitled to an indemnity if and to the extent that -

(a) he has brought the principal new customers or has significantly increased the volume of business with existing customers and the principal continues to derive substantial benefits from the business with such customers; and
(b) the payment of this indemnity is equitable having regard to all the circumstances and, in particular, the commission lost by the commercial agent on the business transacted with such customers.
(2) The amount of the indemnity shall not exceed a figure equ i valent t o indemnity fo r one year calcu l ated from th e comme r cial agent’s ave r age an nu al remu nerat i o n ov er th e preceding five years and if the contract goes back less than five y ear s th e in de mn i t y sh al l be ca lc ulate d on the a v erage for the period in question.
(3) The grant of an indemnity as mentioned above shall not prevent the commercial agent from seeking damages.
(4) Subject to subarticle (7) and to article 78E, the commercial agent shall be entitled to compensation for damage he suffers as a result of the termination of his relations with his principal.
(5) For the purpose of this sub-title such damage shall be deemed to occur particularly when the termination takes place in e i t h er or bo th o f t h e fo ll ow in g ci rcum st an ces, nam e l y circumstances which -
(a) deprive the commercial agent of the commission which proper performance of the agency contract would have procured for him whilst providing his principal with substantial benefits linked to the activities of the commercial agent; or
(b) have not enable the commercial agent to amortize the costs and expenses that he had incurred on the advice of his principal in the performance of the agency contract.
(6) Entitlement to the indemnity or compensation for damage
as provided for under subarticles (1) to (5) shall also arise where the agency contract is terminated as a result of the death of the commercial agent.
(7) The commercial agent shall lose his entitlement to the indemnity or com pensation for dam age in accordance with the provisions of the foregoing subarticles if within one year following termination of his agency contract he does not make a claim to his principal therefor.

78E. The indemnity or compensation referred to in article 78D

shall not be payable to the commercial agent where -
(a) the principal has terminated the agency contract because of default attributable to the commercial agent which would justify immediate termination of the agency contract in accordance with article 78C; or
(b) the commercial agent has himself terminated the agency contract, unless such termination is justified -
(i) by circumstances attributable to fault of the principal, or
(ii) on grounds of the age, infirmity or illness of the commercial agent in consequence of which he cannot reasonably be required to continue his activities; or
(c) the commercial agent, with the agreement of his principal, assigns his rights and duties under the agency contract to another person.

Grounds for excluding payment of indemnity or compensation under article 78D. Added by:

IX. 2003.3.

78F. The parties may before the expiration of the agency contract, not derogate from articles 78D and 78E to the detriment of the commercial agent.

78G. (1) A restraint of trade clause shall be valid only if and to the extent that -

(a) it is concluded in writing; and
(b) it relates to the geographical area or the group of customers and the geographical area entrusted to the commercial agent and to the kind of goods covered by his agency under the contract.
(2) A restraint of trade clause shall be valid for not more than two years after termination of the agency contract.
(3) Nothing in this article shall affect any enactment or rule of law wh ic h im p o se s o t her re stri ct io ns o n th e va li di ty or enforceability of restraint of trade clauses or which enables a court to reduce the obligations on the parties resulting from such clauses.

Prohibition on derogation from articles 78D and

78E.

Added by:

IX. 2003.3.

Restraint of trade clauses.

Added by:

IX. 2003.3.

78H. Nothing in this sub-title shall require information to be given where such disclosure would be contrary to public policy.

Disclosure of information. Added by:

IX. 2003.3.

Service of notice, etc.

Added by:

IX. 2003.3.

78I. (1) Any notice, statement or other document to be given or supplied to a commercial agent or to be given or supplied to the principal under this sub-title may be so given or supplied:

(a) by delivering it to him;
(b) by leaving it at his proper address addressed to him by name;
(c) by sending it by post to him addressed either to his registered address or to the address of his registered or principal office; or by any other means provided for in the agency contract.
(2) Any such notice, statement or document may -
(a) in the case of a body corporate, be given or served on the secretary or clerk of that body;
(b) in the case of a partnership, be given to or served on any partner or on any person having the control or management of the partnership business.

Contracts entered into before coming into force of this subtitle.

Added by: IX. 2003.3.

78J. The provisions of this subtitle shall also apply to agency contracts concluded before the date of coming into force of this sub-title:

Provided that noting therein shall effect any right or liability accrued before such date.

Sub-title V

OF BROKERS

Requirements for becoming a public broker.

Amended by: XXIV. 1995.362;

XIII. 2008.2, 3. Substituted by:

XXIII. 2009.19.

79. (1) Any person desiring to act as a public broker shall notify the Council of the Chamber of Commerce, Enterprise and In du str y, as th e au th or it y reg u l a ti n g th is acti v it y, req u est i n g registration, within thirty days of starting such an activity.

(2) In order to be registered as a public broker with the regulatory authority, an applicant shall inform the authority in writing in such form as the regulatory authority shall prescribe, containing the full name and surname, age, private and business addresses of the applicant and such other particulars concerning his business or occupation as the regulatory authority shall require.
(3) Brokers complying with all the aforesaid formalities shall be registered in a register administered by the regulatory authority. Notice of any registration under this article shall be published in the Gazette. In the month of January of each year, a complete list of regi strati on s t h en i n fo rce shal l li kew i se be pub li shed i n the Gazette.

Forfeiture of office of broker. Substituted by: XXIII. 2009.19. Cap. 9.

80. If a public broker is convicted of any of the crimes provided for in Sub-titles I, II and III of Title IX of Part II of Book First of the Criminal Code, he shall, ipso facto, forfeit his office,
and his name shall be struck off the register.

81. Whosoever, without complying with the formalities p r escri b ed in article 79 or after forfeitin g his offi ce of p ublic broker, performs an act of brokerage, shall, on conviction by the Court of Magistrates, be liable to the punishments established for contraventions.

82. (1) Public brokers shall keep a memorandum or daybook and a book of brokerages.

(2) The provisions of article 21 shall apply to such books.

Punishment for unlawful exercise of office of broker. Amended by: VIII.1990.3.

Books to be kept by brokers.

83. Every public broker, on the conclusion of every transaction, shall forthwith note it down in his memorandum or day-book, and shall, day by day, enter every transaction in his book of brokerages. He shall state in both such books, the date, the name of the con t racting parties, the nature of th e transacti on and, generally, every stipulation and conditi o n agreed upon by the parties, and, in the case of merchandise, he shall particularly state the quality, the quantity, the price and the marks, if any, and the mode of payment.

84. The public broker shall, if so required by any of the contracting parties, deliver a true copy signed by him, of the entry made in the book of brokerages.

85. Public brokers shall, if so ordered by the court, produce their books for the purpose of collating any copies delivered by them to the parties, and shall give to the court, if necessary on oath, all such explanations as may be required.

86. (1) Every public broker shall have the custody of his books and shall keep them in good order.

(2) In the event of the death or interdiction of a public broker, his books shall be deposited in the Civil Court, First Hall, by his heirs or by any other person in whose possession they may be or by himself, as the case may be, within fifteen days from the death or interdiction.
(3) In default of such deposit, the registrar may take action for the deposit of the books and may, where necessary, demand for such purpose the issue of any requisite warrant against any person w hom he shall have reasonabl e grounds to believe t o be i n possession of such books.

Duties of brokers.

Delivery of copies of entries.

Production of books.

Custody of books. Amended by: XXIV.1995.362.

87. The provisions contained in articles 79, 80 and 81 shall not apply to brokers employed in the selling or letting of immovables, and the provisions contained in articles 79 to 86 shall not apply to brokers employed in the selling of agricultural produce.

88. No public broker shall transact any commercial business for his own account, or have any intere st therein, either directly or indirectly, in his own name or through the medium of a third party, whether alone or in partnership with others; nor shall any public broker lend his name for any transaction whatsoever to any person not authorized to exercise the office of a public broker:

Exceptions. Amended by: XXXVII. 1939.11.

Broker cannot transact business for his own account, etc.

partnership between them for the purpose of brokerage only.

Broker is not agent of parties.

Non-disclosure of name of party by broker.

89. A public broker is not the agent of the parties in concluding any transaction; and if in concluding any transaction he acts as ag en t of o n e o f th e p a r t i e s, h e shal l no t be en ti tl ed to t h e commission as broker.

90. (1) A public broker who does not disclose to one contracting party the name of the other contracting party shall be personally liable for the performance of the contract, and shall be subrogated to the rights of the contracting party who has been paid by him, as against the undisclosed contracting party.

(2) If the public broker discloses the name even after concluding the business, the one party may directly sue the other party, saving the pub lic broker ’s liabil ity i n case of n on- performance.

Penalty for contraventions committed by public brokers. Amended by: L.N. 46 of 1965; LVIII. 1974.68; XIII.1983.5; VIII.1990.3; XXIV.1995.362;

L.N. 407 of 2007. Substituted by: XXIII. 2009.20.

91. (1) A public broker who acts in contravention of any of the obligations mentioned in the foregoing articles shall, at the instance of any interested party or of the At to rney General, be l i abl e t o a penal t y of n o t less th an fifty euro (€ 50) an d n o t exceeding five hundred euro (€500) on proceedings taken before the Civil Court, First Hall, or the Court of Magistrates (Gozo) in its superior commercial jurisdiction, as the case may be, saving any other action arising from this Code or any other law.

(2) The court may, moreover, order the interdiction of the public broker for a period not exceeding two years, in which case the provisions of article 81 shall, during the time of interdiction, be applicable.

Payment of broker’s fees.

92. Saving any agreement to the contrary, the fee for brokerage is payable by the contracting parties in equal shares.

Rights of broker. 93. A public broker shall in respect of the bargain which he has neg o tiated be enti tled t o the brok erage fee, even t houg h the transaction be concluded between the parties without him , but without the services of another public broker.

Apportionment of brokerage fee.

Non-applicability of ss.79-94 to brokers authorised under previous law.

94. Where a public broker has commenced a transaction which is afterwards conc luded by an o t her accor d ing to the t e rms negotiated by the former, the brokerage fee shall be equally divided bet w een th e tw o brokers; but if the transaction i s concluded otherwise than according to the terms negotiated by the former broker, the whole brokerage fee is payable to the second broker.

95. The provisions of articles 79 to 94 shall not apply to brokers dul y autho r ized t o act as such before the fir s t day of January nineteen hundred and twenty-eight.

Sub-title VI

OF COMMISSION MERCHANTS

96. A commission merchant is a person who transacts business i n his ow n nam e or under a f i rm name, for or on behalf of a principal.

97. A commission merchant is not bound to disclose the name of the principal for whom he acts. He is directly liable to the person with whom he deals, as if the transaction were his own.

98. The principal has no action against the person with whom t h e co mmi ssio n merchan t has co ntracted nor c a n such person maintain an action against the principal.

99. The commission merchant may deviate from the instructions received from the principal if he is of opinion that the latter would have given his approval had he known of the altered conditions, and there has not been sufficient time to ask for and obtain his previous assent.

100. Where instructions are given for the buying or selling of stocks, bills of exchange and other current securities or of goods having an exchange or market value, the commission merchant, unless the principal otherwise directs, may himself furnish at the current price, as seller, the things he has to buy, or hold for himself at the current price, as buyer, the things he has to sell on account of the principal, saving his right to commission.

101. In the absence of agreement or usage to the contrary, a commission merchant shall not be answerable for the performance of th e ob li gati on s assum e d b y the person wit h who m he h a s contracted; and if he ass u mes such l i abi lit y h e is ent itl ed t o a special comm ission, called a del credere commission which, in default of agreement, is fixed by the custom of the place where the authority is executed.

102. Every authority is deemed to include an order to conform to the usages prevailing in trade.

103. It shall be in the power of the commission merchant to accept or decline the agency entrusted to him by the principal:

Provide d that if he does no t accept it , he shall, without any delay, give notice of his refusal to the principal.

Definition of commission merchant.

Commission merchant not bound to disclose principal’s name.

Action by third party against principal or vice- versa.

Powers of commission merchant.

Right of commission merchant in buying or selling stocks, etc.

Liability of commission merchant.

Prevailing usages. Acceptance of

agency.

104. A commission merchant may relinquish the agency already accepted by him where a just cause arises inducing him to believe that the principal has not suff icient funds to meet his obligations, in which case he shall, without any delay, give him notice of his renunciation.

105. A commission merchant who has made advances on goods forwarded to him for sale on account of the principal has a lien or privilege for the reimbursement of such advances and for interest and expenses on the value of the goods if these are already at his disposal in any warehouse or place of deposit, or if, before their ar rival, he is in a p o si tion to prov e that the goo ds have been forwarded to him.

Relinquishment of agency.

Lien or privilege in favour of commission merchant.

on goods bought

on behalf of others.

Lien or privilege on unaltered goods.

Priority of claim of commission merchant.

Lien on proceeds of goods.

of others has on such goods a like lien or privilege as mentioned in the last preceding article for the reimbursement of the price paid or t o be pai d b y hi m, bo th if t h e go od s are at h i s disp osal i n any warehouse or place of deposit, as well as if, before the goods come into the possession of the principal, he proves that he has forwarded the same to the principal.

107. The lien or privilege mentioned in the last preceding article shall likewise attach, where the goods, although already in the possession of the principal, have not undergone a substantial alteration and can still be identified.

108. A commission merchant to whom goods have been forwarded or who has bought goods on behalf of a principal has, even if such goods have been sold and delivered, a preferential claim for reimbursement on the proceeds as against the creditors of the p r incip a l , in respect of al l adv a n c es made b y hi m, and of interest and expenses.

109. The lien or privilege mentioned in articles 105 and 108 may be enforced on the price of the goods if such price has not been already paid or passed to account current as between the principal and the buyer.

Title V

OF COMMERCIAL OBLIGATIONS

When contract by correspondence is perfected.

Revocation of contract.

110. A contract stipulated by means of correspondence, whether by letter or telegram, between parties at a distance, is not comple te if the acceptance has no t become known to the party making the offer within the time fixed by him or within such time as i s ordi nar ily req u ired fo r th e exchange of the o ffer an d th e acceptance, according to the nature of the contract and the usages of trade generally.

111. (1) Until the contract is complete, both the offer and the acceptance may be revoked. If, however, the person making the offer declares that he will keep it open till a certain time, or if a time is implied by the nature of the contract, the revocation thereof before the lapse of such time will not prevent the completion of the contract.

(2) If the offer empowers, even impliedly, the other party to carry out the contract without prev iously com m un icatin g hi s acceptance, the contract is complete as soon as its execution has commenced within the customary or prescribed time.

Delayed acceptance, etc.

112. A delayed acceptance or an acceptance subject to conditions, additions, restrictions or alterations shall be deemed to be and shall count as a refusal of the original offer and as a new offer.

113. (1) An offer made to the public by means of catalogues or other advertisements is not binding unless it has been expressly declared to be so; it only amounts to an invitation to offer.

(2) The exhibition of goods constitutes an offer binding the person exhibiting them if it is accompanied by an indication of the price and all other conditions of the sale.

Offer by means of advertisements.

114. Where the parties have agreed that the verbal agreement shou ld be re duced to writing it is presumed that th ey desire to subject the validity thereof to the observance of such formality.

115. (1) In commercial obligations, co-debtors are, saving any stipulation to the contrary, presumed to be jointly and severally liable.

(2) The same presumption shall extend to a surety, even if not a trader, who guarantees a commercial obligation.

Where parties agree to reduce verbal agreement to writing.

Co-debtors jointly and severally liable.

116. Where the money expressed in a contract is not legal tender in Malta and the exchange thereof is not stated, payment may be made in the money of the country according to the rate of exchange a t sight at the due date and a t the place fixe d for the performance of the obligation, and, if there is not at such place a course of exchange, according to the rate of exchange in the nearest market, unless the clause "in cas h" o r an equi valent clau se is contained in the contract.

117. In commercial contracts, the implied resolutive condition ref e rr ed t o i n ar ticle 1068 of the Civil Code prod uces th e dissolution of the contract ipso jure, and it shall not be lawful for the court to grant to the defendant a time for clearing the delay:
Provided that this article shall not apply to contracts of letting of immovable property or to contracts of emphyteusis or to contracts the dissolution whereof, in the event of failure by one of the parties to fulfil his engagements, is specially regulated by law.

Payment.

Implied resolutive condition. Amended by: XXII.1976.4.

Cap. 16.

118. The right competent to a debtor under article 1483 of the Civil Code, in the case of assignment of a litigious right, cannot be exe r c i se d where the litigious ri gh t so assig n ed ar ises fro m a commercial transaction.

Litigious rights arising from commercial transactions. Cap. 16.

Title VI

OF THE CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY

Provisions of this Title substituted by Act XXX of 1927. Amended by:

XIII. 2008.2.

119. (1) The Chamber of Commerce, Enterprise and Industry is a body composed of traders, brokers, master-mariners and all other persons engaged in trade, commerce or industry.

(2) It is recognized by the Government.

Chamber of Commerce, Enterprise and Industry. Amended by: XIII. 2008.4.

Council of the Chamber of Commerce, Enterprise and Industry. Amended by: XVIII.1944.2; XIII. 2008.2, 5.

120. (1) The said Chamber shall each year appoint, in terms of the statute approved by the said Chamber, a committee composed of members of the Chamber of Commerce, Enterprise and Industry for re gu lat i n g it s a f f a i r s. The p e rso n s co m p o s in g th e sa id co mmitt ee sh al l con s tit ute t h e Co uncil of th e Ch amb e r of C o m m erce, En terprise an d In dust r y an d t h ei r nam e s sh all be published in the Government Gazette.

(2) The said Council shall represent the commercial, mercantile and industrial community of Malta.

Seat of Chamber of Commerce, Enterprise and Industry.

Amended by: XXXIII. 1990.38;

XIII. 2008.2.

Transactions carried out in Exchange.

121. The Chamber of Commerce, Enterprise and Industry has its seat in Valletta in the building of the Chamber of Commerce, Enterprise and Industry.

122. Repealed by: XXXIII. 1990.38.

Title VII

OF BILLS OF EXCHANGE, PROMISSORY NOTES, AND DRAFTS OR

CHEQUES ON BANKERS OR CASHIERS

Sub-title I

OF BILLS OF EXCHANGE

OF THE FORM OF A BILL OF EXCHANGE

Form of bill of exchange.

Drawer and drawee may be the same person.

Nullity of bill of exchange.

Discrepancy between words and figures.

123. A bill of exchange must be dated, and must specify the place where it is drawn, the sum to be paid, the name of the person who is to pay, and the name of the person to whom or to whose order payment is to be made, the time and place of payment, and the value given, whether in cash, in goods, in account, or in any other manner; and must be signed by the drawer.

124. A bill of exchange can be drawn by a person upon himself, and can be made payable at the same place where it is drawn.

125. A bill of exchange signed by means of a cross or any other mark is null.

126. (1) Where in a bill of exchange the sum payable is expressed in words and also in figures, and there is a discrepancy betw een t h e t w o, th e sum deno ted by t h e w o rd s is th e amou nt payable.

(2) Where the amount is repeatedly expressed in figures or in words, and there is a discrepancy, the smaller amount is the amount payable.

May be drawn to order or drawer or third party.

127. A bill of exchange may be drawn to the order of a third party, or to the order of the drawer himself.

128. (1) A bill of exchange may be drawn on a person, and made payable at the place of residence of a third party.

(2) It may be drawn by order and for account of a third party.

May be drawn on a person and made payable at residence of third party.

129. (1) A bill of exchange may be drawn in a set, each part of the set containing a reference thereto by the words first, second, third, etc., in which case each part is equivalent to the whole of the parts, and the whole of the parts constitutes one bill.
(2) In the absence of such reference, each part shall be deemed to be a separate bill.

Bill in a set.

OF THE DUTIES OF THE DRAWER

130. The drawer must deliver to the payee, if the latter so requires, before the bill becomes due, more than one part of the bill.

131. (1) The drawer, or, where a bill is drawn for account of another party, the party for whose account the bill has been drawn, engages that at the time when the bill becomes due there shall be on his account in the hands of the drawee a supply of funds sufficient for the payment of the bill, even if such bill is payable at the place of residence of a third party.

(2) Nevertheless, the drawer for account of another person remains personally liable towards the payee, the endorsers, and the holder of the bill.

Several parts may be required.

Supply of funds to meet bill.

132. The drawee shall be deemed to have been put in funds if, at the time the bill becomes due, he owes a debt to the drawer, or to the party for whose account the bill was drawn, in an amount not less than that specified in the bill.

133. (1) An acceptance implies the supply of funds, and constitutes a proof thereof as regards the holders and the endorsers.

(2) The drawer alone, whether the bill be accepted or not, is bound to prove, in case of dispute, that the persons on whom the bill was dr awn we re pr ovided with th e necessary funds for the payment of the bill at maturity; otherwise he is bound to warrant the b ill, ev en th ough th e pro t est i s made after the lapse of th e prescribed times.

When drawee is deemed to have been put in funds.

Acceptance implies supply of funds.

134. (1) The holder of a bill which has been protested shall, in no case, be entitled to the funds supplied by the drawer or by the person for whose account the bill was drawn.

(2) If the bill has not been accepted, the funds supplied shall, in case of bankruptcy of the party supplying them, revert to his estate.
(3) If the bill has been accepted, the funds supplied shall remain with the acceptor, subject to his obligation of paying the holder of the bill.

Protested bills.

When drawer prohibits transfer of bill.

135. When the drawer has prohibited the transfer of a bill by an express declaration on the bill itself, and this notwithstanding a transfer is made, the endorsee acquires no rights other than those of the payee.

OF ENDORSEMENT

Transfer by endorsement.

To whom a bill may be endorsed.

Where endorsement is made.

Endorsement may be special or in blank.

Liability of endorser.

Qualified endorsement.

136. The holder of a bill can transfer the property in it by endorsement.

137. A bill of exchange may be endorsed to the drawee, to the acceptor, to a prior endorser, or even back to the drawer, and may be further endorsed by each and all of them.

138. The endorsement is made on the back of the bill, or on a slip of paper called an allonge which, when necessary, is attached to the bill itself.

139. An endorsement may be made by specifying the name of the person to whom, or to whose order the bill is to be payable, the date of the endorsement, and other particulars; it may also be made in blank by the mere signature of the endorser.

140. (1) The endorser is liable to every succeeding holder for the acceptance and payment of the bill.

(2) Nevertheless, where the endorsement is qualified by the words "without recourse" or by some other form of words implying a li ke q u alifi c ation, the endorser wh o has so qu alifi e d th e endorsement is exempted from all liability on his endorsement.

Endorser prohibiting transfer not liable to succeeding endorsees.

Effect of restrictive endorsement.

Where endorsement is made after lapse of time for protest for non-payment or non-acceptance.

141. Where an endorser has in his endorsement expressly prohibited any further transfer of the bill, the parties to whom such bill is subsequently endorsed have no right of recourse against such endorser.

142. Where the endorsement is made with the order "for coll ectio n" or any o t her expression im plying an order by the endorser, such endorsement does not pass the property in the bill, but merely transmits to the endorsee the order therein contained, and in such case the endorsee can only transmit to other parties the same order by a similar endorsement.

143. (1) Where the endorsement is made after the expiration of the time within which the protest for non-payment is to be made, the endorsee acquires, as against the drawee, all the rights arising from the acc eptanc e already made , an d th e ri gh ts of r e co ur se against such parties as shall have endorsed the bill after the lapse of the said time.

(2) The provisions of this article shall also apply where the endorsement is made after the expiration of the time within which the protest for non-acceptance is to be made.

144. Where the endorsement is made after the bill has been protested for non-payment, such endorsement shall not vest in the endorsee any rights other than those competent to his endorser against the drawee, if the drawee has accepted the bill, and against such endorsers as may be still liable on the bill.

145. In the cases referred to in the last two preceding articles, the endorsee maintains unimpaired his rights against the drawer, and against the person for whose account the bill was drawn.

146. Where the endorser has in his endorsement specified the ti me f or th e p r esen tm en t of t he b il l to t he d raw ee, th e l i abi li ty created by the endorsement ceases, if the bill is not presented for acceptance within the time so specified.

147. The mere possession of a bill of exchange not endorsed to the holder entitles the holder to present such bill for acceptance, and to protest it for non-acceptance.

Rights of endorsee where endorsement is made after protest for non- payment.

Rights of endorsee against drawer.

Where endorser specifies time for presentment of bill.

Rights of holder where bill is not endorsed to him.

OF ACCEPTANCE

148. The acceptance of a bill of exchange must be made on the bill itself by the signature of the acceptor, with or without the words "I accept" or "accepted".

149. The acceptance must be dated, if the bill is payable at a certain period after sight or at usance. The omission of the date of acceptance renders the bill payable at the time specified in the bill, such time to run from the date of such bill.

150. (1) An acceptance cannot be conditional, but it may be partial as to the amount to be paid.

(2) A conditional acceptance shall be deemed to be a refusal to accept.

Form of acceptance.

When acceptance is to be dated.

Acceptance cannot be conditional, but may be partial.

151. (1) A bill of exchange shall be accepted on presentment, or at the latest within twenty-four hours after presentment.

(2) Where, after the expiration of the said time, the bill is not re-delivered, accepted or unaccepted, the party who retained the bill shall be liable in damages and interest to the holder.

When bill is to be accepted.

152. (1) The acceptor of a bill by accepting it engages that he will pay the amount thereof, and cannot be relieved from such engagemen t , ev en thou gh th e draw er, or the party fo r who s e account the bill was accepted, may, without his knowledge, have become bankrupt previously to the acceptance of the bill.

(2) Nevertheless, when the acceptor has not been put in funds, he may resort to the drawer or to the party for whose account the bill was accepted; in any such case the acceptance raises only a rebuttable presumption against the acceptor, who shall have the right to prove the contrary.

Obligations of acceptor.

Protest for non- acceptance.

153. (1) A refusal to accept shall be proved by means of a protest termed protest for non-acceptance.

(2) Where the bill is not accepted for the whole amount for which it is drawn, a protest for non-acceptance of the balance shall be made.

Duty of drawer and endorsers upon notification of protest for non- acceptance.

Where acceptor’s condition changes after acceptance of bill.

Obligation of surety.

Promise to accept bill.

154. Upon notification of the protest mentioned in the last preceding article, the endorsers and the drawer are respectively bound to give sufficient security for the payment at maturity of the amount of the bill or of the amount for which it was not accepted, or to pay the bill together with the expenses of protest and of re- exchange.

155. Where, after the acceptance of the bill, it is proved that the acceptor ’s condition, with regard to his commercial affairs, has so changed as to give rise to a reasonable fear that the bill will not be paid at maturity, it shall be lawful to demand against the drawer, the endorsers, and ev en against the ac ceptor himse lf, the same security as that mentioned in the last preceding article.

156. A person who stands surety for one only of the parties bound to give security, shall be jointly and severally liable only with the party for whom he stands surety.

157. A promise to accept a bill of exchange does not amount to an acceptance , but the promise e may ma inta in an a c tion for damages and interest against the promisor if the latter refuses to perform the promise.

OF ACCEPTANCE FOR HONOUR OR BY INTERVENTION

Acceptance for honour or by intervention.

158. (1) Where a bill of exchange is protested for non- acceptance, any person, not being a party already liable thereon, may intervene and accept the bill for the honour of the drawer, or of one of the endorsers, with or without an order to that effect from such drawer or endorser.

(2) The drawee himself may, after the protest for non- acceptance, intervene as stranger as aforesaid.

Order of preference where several persons offer to accept for honour.

159. Where several persons offer to accept for honour, the following shall have the preferences:

(a) those who intervene for the drawer or for the party for whose account the bill is drawn;
(b) those who intervene for the endorsers according to the order of the endorsements.

Option of holder. 160. Where several persons offer to accept by intervention for one and the same party, the holder of the bill may choose any one of them.

161. Nevertheless, the party instructed to intervene by the person for whom he offers to accept shall, in all cases, have the preference over those who offer to accept for the same person, without such instructions.

162. The holder of a bill of exchange may, as any other person, accept by intervention, and he may, in like circumstances, give the preference to himself.

163. An acceptance for honour must be written on the bill and be signed by the acceptor for honour, and mention thereof shall be mad e in the act of protest or in a subsequent act forming an extension thereof or appended thereto.

164. The acceptor for honour shall cause the protest for non- acceptance to be delivered to him, and shall, without delay, give notice of his in terventi on to the part y for who se ho nour he has in tervened, and communicate to such party the said protest: in default, he shall be liable in damages and interest.

165. Where the acceptor for honour does not state for whose honour he intervenes, the acceptance shall be deemed to be made for the honour of the drawer, or of the party for whose account the bill is drawn, if the name of such party appears on the bill.

166. (1) Notwithstanding any acceptance for honour, the hol der o f a bi ll m a int a in s un im pai r ed all su ch rig h ts as are competent to him against the drawer and the endorsers for want of acceptance by the drawee.

(2) Nevertheless, where a reference in case of need has been inserted in the bill by the drawer himself, and the bill is accepted by the referee in case of need, the security mentioned in article 154 shall not be competent.

Preference to be given to party instructed to intervene.

Holder of bill may accept for honour.

Acceptance for honour how made.

Duties of acceptor for honour.

Where acceptor for honour does not state for whom he intervenes.

Rights of holder in case of acceptance for honour.

167. (1) A bill accepted for honour must be presented to the o r iginal drawee for paymen t at the time it fall s d u e, and be protested against him in case of non-payment.

(2) In default of such protest, the acceptor for honour shall not be bound to pay the bill, and if he pays the bill notwithstanding such default, he shall lose his right of recourse against such parties as may have had an interest that the bill be protested against the drawee.

Bill accepted for honour to be presented for payment to original drawee.

OF JOINT AND SEVERAL LIABILITY

168. All parties who have signed, accepted, or endorsed a bill, are jointly and severally liable for warranty to the holder.

Parties to a bill jointly and severally liable.

OF SURETY PAR AVAL

Aval. 169. Independently of the acceptance and endorsement, the payment of a bill of exchange can be guaranteed by an aval, which is an obligation of a third party.

How aval is given. 170. Aval can be given on the bill itself, or by a separate act, or even by letter.

Liability of party giving aval.

171. The party giving the aval is liable jointly and severally, and in the same manner as the drawer and the endorsers, unless the parties have agreed otherwise.

OF MATURITY AND PAYMENT

Time of payment. 172. A bill may be expressed to be payable - (a) at sight;
(b) at a certain time or on a certain day; (c) at a certain time after sight;
(d) at a certain time after date; (e) at usance.

At sight. 173. A bill expressed to be payable at sight is payable on presentment.

At a certain time or on a certain day.

Bill payable in the middle of the month.

Bill payable at a certain time after sight, or after date.

174. A bill expressed to be payable at a certain time or on a certain day is payable at the time or on the day expressed therein.

175. Where a bill is expressed to be payable in the middle of a certain m ont h, th e bi ll shall be deem ed t o beco me due on the fifteenth day of that month.

176. A bill expressed to be payable at a certain time after sight, or at a certain time after date, is payable -

(a) if the time is stated in days, on the last day thereof: provided that in the case of a bill expressed to be payable at a certain time after sight, the day on which the bill was presented for acceptance shall not be reckoned, and in the case of a bill expressed to be payable at a certain time after date, the day of the date of the bill shall not be reckoned;
(b) if the time is stated in weeks or months, on the day of the week or month which corresponds, in name or number, with the day on which the bill was presented for acceptance or with the day of the date of the bill:
Provided that where there is no such date in the month of payment, the bill shall be deemed to fall due on the last day of such month.

Half a month. 177. The time expressed by the words "half a month" shall be

equivalent to fifteen days.

178. The months are reckoned according to the Gregorian calendar.

179. A bill expressed to be payable at usance is payable at twenty-one days from the day on which the bill was presented for acceptance.

180. In the absence of any of the indications mentioned in article 172, the bill shall be payable at sight.

181. If the day on which a bill becomes due falls on a Sunday or on a Holy day of obligation or on Good Friday or on any other public holiday, the bill shall be payable on the day next following, not being a public holiday.

182. A bill shall be deemed to be due from the moment the drawee is adjudged bankrup t, and in such case the holder m ay protest the bill as provided in article 191; but the drawer and the endorsers may, if called upon to pay the bill, postpone payment until the day on which the bill shall be due according to the terms in which it is drawn, on giving the security mentioned in article 154.

183. A bill of exchange must be paid in the money specified therein. Nevertheless, if the money specified in the bill is fictitious or is not legal tender in the place where payment is to be made, and the value thereof has not been stated in the bill, the payment shall be made in the money which is legal tender at the place of payment, in an amount corresponding to the value of the money specified in the bill at the time of maturity, unless the drawer, by the use of the clause "in cash" or other equivalent clause, shall have expressly required payment to be made in the money specified by him, not being fictitious money.

184. The payer of a bill is not bound to verify the genuineness of the endorsements.

185. A party paying a bill before it becomes due shall be answerable for the validity of the payment.

186. A party paying a bill at maturity, and without any opposition, shall be deemed to be lawfully discharged.

187. The holder of a bill cannot be compelled to receive payment thereof before it becomes due.

188. The payment of a bill on a second, third, or other part, shall be valid, provided it is specified on such second, third, or other part, that such payment annuls the effect of the other parts of the bill.

189. A party paying a bill on a second, third, or other part, without taking back the part which he has accepted, shall not be dischar g ed with respect to a third party in possession of the accepted part, saving his right of recourse against the party to whom payment was unduly made.

Gregorian calendar.

Bill payable at usance.

Where no time is expressed, bill is payable at sight.

When day of maturity is a Sunday, etc. Amended by: V.1904.8.

Where drawee is adjudged bankrupt.

In what money bill is payable.

Payer not bound to verify genuineness of endorsements.

Anticipated payment.

Payment at maturity without opposition operates as valid discharge.

Holder cannot be compelled to receive anticipated payment.

Payment of part of

a bill drawn in sets.

Where accepted part is not taken back by payer.

Where several parts are accepted.

Protest for non- payment.

Payment of bill not endorsed to holder.

Liability of holder obtaining payment of bill.

Payment to be made against delivery of bill.

190. Where a bill is drawn in a set consisting of a first, second, third, or other part, and the drawee has accepted more than one part, he is bound to pay all the accepted pa rts which shall be presented to him at maturity by the different holders thereof, saving his right of recourse against the person who made use of more than one of the parts of the bill.

191. A refusal of payment of a bill shall be proved by means of a protest termed protest for non-payment.

192. A person who claims the payment of a bill which has not been endorsed to him, but who, at the same time, proves that the bill was remitted to him to receive payment thereof, may, upon giving sufficient security, demand payment of the bill, and protest it in case of non-payment.

193. The holder of a bill who receives payment thereof, and all prior endorsers shall be liable to t h e party p a yi ng th e b i l l , a s guarantors of the validity of all antecedent endorsements.

194. Saving the case referred to in articles 201 and 202, the party l i able for the payment of th e bi ll is n o t bo und t o effect payment the r eof exce pt agains t th e d e li very of t h e bi ll d u l y discharged.

Part-payment. 195. (1) The holder of a bill cannot refuse to receive from the drawee part-payment thereof, even though the bill may have been accepted by the drawee himself, or by any other party, for the whole amount, but the holder must protest it for the balance.

(2) The party making such part-payment cannot, however, claim that the bill be delivered up to him, but can only demand that the amount paid be endorsed upon the bill, and that a copy of the bill with the discharge of the amount paid, be given to him.

Where bill is not presented for payment. Amended by:

L.N. 148 of 1975; XXIV.1995.362.

Pleas personal to endorsers.

Pleas personal to holder.

196. If a bill is not presented for payment at the time it becomes due, the acceptor may, after the expiration of the time within which protest for non-payment is to be made, lodge the amount of the bill in the Civil Court, First Hall, at the expense and risk of the holder.

197. Pleas which are personal to the endorsers may not be set up against the holder of a bill.

198. (1) Pleas which are personal to the holder of a bill cannot delay the paym ent thereof, unless the plea s ar e s u c h as c an be conveniently and speedily disposed of in the pending action.

(2) Where such pleas require a prolonged enquiry, the examination thereof shall be referred to an independent action and, meanwhile, the judgment ordering the payment of the bill, with or without security, as the court shall deem fit, shall not be delayed.

Opposition to payment of bill.

Loss of non- accepted bill.

199. No opposition to the payment of a bill shall be allowed except in case of loss of the bill or bankruptcy of the holder.

200. In case of loss of a non-accepted bill, the party to whom such bill belongs may demand the payment thereof upon a second, third, fourth, or other part.

201. Where the lost bill is an accepted bill, payment cannot be claimed upon the second, third, fourth, or other part, unless the party claim ing payment du ly proves his title ther eto and gives sufficient security.

202. Where the party who has lost the bill, whether accepted or not , is u n ab le t o pre s en t a secon d , t h ird, fou r t h , or o t her p a rt thereof, he can nevertheless demand and obtain payment, if he duly proves his title thereto and gives sufficient security.

203. The obligation arising from the security mentioned in the last two preceding articles shall be extinguished after the lapse of three years.

204. In the absence of the security referred to in articles 201 and 202, it shall be lawful, on furnishing the proof of title required in those articles, to demand that the amount due on the lost bill be lodged in the Civil Court, First Hall.

205. In case of non-payment on a demand to that effect in accordance with the provisions of articles 201 and 202, the owner of the lost bill shall, in order to preserve all his rights, cause a deed of protest to be drawn up, and to be notified to the drawer and the endorsers, within the time and in the manner hereinafter prescribed with regard to the protest for non-payment.

206. The owner of a lost bill, in order to obtain the second, third, or other part thereof, shall apply to his immediate endorser, and such endorser shall be bou nd to giv e h is assistance to, and allow the said owner to proceed in his name against his own endorser, and so on from one endorser to another up to the drawer of the bill.

207. The owner of the lost bill shall bear all the expenses resulting from the loss.

208. Where a party refuses to give a second, third, or other part, upon being required so to do under article 206, he shall be liable in damages and interest.

Loss of accepted bill.

Where holder is unable to present any part of the bill.

Extinguishment of obligation arising from security.

When deposit of amount of lost bill may be demanded. Amended by:

L.N. 148 of 1975; XXIV.1995.362.

Deed of protest in case of a lost bill.

Liability of immediate endorser to holder endorsee of lost bill.

Owner of lost bill liable for expenses.

Liability for damages in case of refusal to give second, third, or other part.

OF PAYMENT FOR HONOUR OR BY INTERVENTION

209. Where a bill of exchange has been protested for non- payment, any person may intervene and pay it supra protest for the honour of the drawer or any of the endorsers.

210. A payment for honour shall be recorded in the act of protest or in a separate act, fo rmin g an extension th ereo f or appended thereto.

211. (1) A party paying a bill of exchange supra protest succeeds to the rights of the holder, and also to his duties with regard to the formalities to be observed.
(2) Moreover, he must give immediate notice of the payment to the party for whose honour he has intervened, under penalty of

Payment for honour.

How recorded.

Rights and duties of payer for honour.

damages and interest.

Discharge of endorsers.

212. (1) Where payment supra protest is made for the honour of the drawer, all the endorsers shall be discharged.
(2) Where the payment is made for the honour of a particular endorser, all subsequent endorsers shall be discharged.

Where two or more persons offer to

pay supra protest.

Preference to be given to drawee.

Rights of acceptor by intervention where bill is paid by others.

When payer for honour forfeits right of recourse.

Bill and protest to be delivered up to payer for honour.

213. Where two or more persons offer to pay a bill supra protest , the rules in regard to acceptance by intervention shall apply.

214. Nevertheless, where the original drawee, against whom the protest for non-acceptance was made, is willing to pay the bill at the time it becomes due, he shall have preference over all the parties who offer to pay the bill by intervention.

215. An acceptor by intervention, who does not pay the bill because it is paid by the drawee or any other party, is entitled to recover from the payer the expenses which he has incurred, and a commission of one-third per centum.

216. The payer for honour, where another party, having preference over him, has offered to pay the bill, shall have no right of recourse against such endorsers as would have been discharged by the payment if made by such other party.

217. The payer for honour is entitled to the delivery up of the b ill itself an d th e protest for n on-paym ent, and he is bo und to refund the expenses of the protest.

OF THE RIGHTS AND DUTIES OF THE HOLDER

Holder to present bill for payment or for acceptance.

Times within

which presentment

is to be made.

218. The holder of a bill of exchange payable in Malta at sight, or at a certain time after sight, or at usance, is bound to present it for payment or for acceptance, within the times prescribed in the next following article, to be reckoned from the date of the bill, under penalt y of forfeitin g his right of recourse against th e endorsers, and even against the drawer, if the latter has provided funds to meet the bill.

219. The times referred to in the last preceding article are-

(a) six months, if the bill is drawn at a place in Europe, Asia Minor, Syria, Egypt, Tripoli, Tunis, Algiers or Morocco;
(b) one year, if the bill is drawn at any other place;
(c) one month, if the bill is drawn and made payable in
Malta:
Provided that in time of maritime war, the times mentioned in paragraphs (a) and (b) shall be doubled.

Bill payable outside Malta.

220. The same forfeiture mentioned in article 218 shall be incur r ed by th e hol der of a bil l d r awn in Malta, and payabl e,

whether at sight, or at a certain time after sight, or at usance, in any o f the co un tri e s ment ion e d in th e last pr ecedi n g arti cle, i f t h e holder shall not present it for payment or acceptance within the times stated in that article.

221. The holder of a bill drawn at a certain time or at a certain day, or at a certain time after date, is not bound to present the bill for acceptance, but if he elects to present it, he is bound to protest it in case of non-acceptance.

222. The provisions contained in articles 218, 220 and 221 shall not apply to such drawer or endorser as may have lawfully given different directions.

223. The holder of a bill shall present it for payment on the day it falls due.

224. The presentment of a bill for acceptance or payment, the protest, the request for a duplicate of the bill, as well as all other acts against a particular party with regard to a bill, shall be made at such party’s place of business or otherwise at his residence.

225. (1) The holder of a bill cannot demand the acceptance thereof, or the delivery of a duplicate, or the performance of any o t her act relating thereto, ex cept on a day not bein g a public holiday.

(2) If the last day on which the performance of any of such acts was demandable falls on a Sunday, or on a Holy day of obligation, or on Good Friday, or on any other public holiday, the performance shall be demanded on the next following day, not being a public holiday.
(3) The provisions of this article shall also apply to the protest.

Certain bills need not be presented for acceptance.

Where drawer or endorsers give different directions.

Presentment for payment to be made at maturity.

Place at which presentment, protest, etc., are to be made.

Acceptance not demandable on Sundays, etc. Amended by: V.1904.9.

226. (1) The protest for non-acceptance shall be made on the d a y next succeeding that on which the bi ll was presented for acceptance.

(2) The protest for non-payment shall be made on the day next succeeding that on which the bill becomes due.

When protest is to be made.

227. (1) The protest for non-acceptance, or the death or bankruptcy of the party on whom the bill is drawn, shall not excuse the holder from protesting the bill in case of non-payment.

(2) Where the acceptor becomes bankrupt before the bill falls due, th e ho lder m a y protest the bil l an d exercise hi s ri ght of recourse.

Protest for non- acceptance, etc., does not excuse holder from making protest for non-payment.

228. Where a party is named in the bill for the purpose of accepting or of paying it by intervention, and the drawee refuses to accept the bill, the holder shall, after protesting the bill against the drawee, present it for acceptance by the party named in the bill.

Holder to demand acceptance from party named in the bill in case of refusal of drawee to accept same.

Holder to demand payment from acceptor for honour, etc., in case of refusal of drawee to pay the bill.

Refusal of acceptor for honour, etc., to be recorded in or after protest.

Holder cannot refuse acceptance or payment for honour.

229. Where the party on whom the bill was drawn refuses to pay it, the holder shall, after protesting the bill against him, present it for payment to the acceptor for honour, and, in case of refusal by the latter, to any other party named in the bill for the acceptance or payment thereof in case of need.

230. The refusal, whether to accept or to pay, by any of the parties referred t o in the last tw o pr ec ed ing arti cl es , s h a ll b e mentioned in the act of protest against the drawee or subsequently thereto.

231. (1) The holder of a bill which has been protested for non- accep tance or no n-payment ca nnot refuse the acceptance or payment offered by a party intervening for the honour of the drawer or any of the endorsers.

(2) Nevertheless, any such acceptance for honour shall not operate so as to bar the hold er from dem a ndin g the security mentioned in article 154.
Retour sans protêt. 232. A request or direction contained in a bill that it shall be returned without protest (retour sans protêt), excuses the holder from the obligation of protesting the bill, but shall not excuse him from the obligation of presenting the bill in due time.

Notice of non- acceptance and of non-payment.

233. (1) The holder of a bill protested for non-acceptance or non-payment shall, without delay, give notice thereof in writing to the endorser immediately preceding him.

(2) Every endorser on receiving such notice shall, without delay, communicate it to the endorser immediately preceding him.
(3) The notice referred to in this article shall be accompanied by the protest.

Where address of endorser is not stated in endorsement.

When holder loses his right of recourse.

234. Where a party has endorsed a bill to another party without stating his address, notice of non-acceptance or non-payment shall be given to the endorser next preceding him.

235. It shall not be competent to the holder of a bill, in case of non-payment, to exercise his right of recourse against the drawer or the endorsers -

(a) if the bill was not presented for acceptance, where necessary, or for payment, to the drawee or the parties mentioned in articles 228 and 229;
(b) if the holder has refused acceptance or payment by a party intervening for the honour of the drawer or of any of the endorsers.

Other cases in which holder loses his right of recourse.

How right of recourse may be exercised.

236. Nor shall it be competent to the holder to exercise his right of recourse against the endorsers or the drawer who has supplied funds to the drawee or to the parties mentioned in articles 228 and

229, if he has failed to comply with the provisions of articles 226,
230 and 233.

237. The holder of a bill protested for non-payment may exercise his right of recourse against all the obligors jointly, or against only one or some of them, without forfeiting his right of

recourse against the others not sued on the bill, and he shall not be bound to follow the order of the endorsements.

238. The right of recourse against endorsers and drawers residing in Malta, in the case of bills, protested for non-payment, drawn in Malta and payable elsewhere, shall be exercised within -

(a) twelve months, if the bill was payable at a place in Europe, Asia Minor, Syria, Egypt, Tripoli, Tunis, Algiers or Morocco;
(b) eighteen months, if the bill was payable in any other country:
Provided that such times shall be doubled in time of maritime war.

Times within which right of recourse against endorsers and drawers resident in Malta is to be exercised.

239. The times specified in the last preceding article shall commence to run -

(a) with regard to the holder of the bill, from the date of the protest for non-payment;
(b) with regard to each endorser, from the day on which the payment was demanded from him, if he pays voluntarily, or, otherwise, from the day on which a judicial demand for payment was made against him.

Running of times.

240. After the expiration of the times specified in the last two preceding articles, the holder and the endorsers of the bill shall lose their right of recourse.

241. (1) In case of bankruptcy of one or more of the parties liable on a protested bill, the holder thereof may put forward his claim for the satisfaction of the whole debt against the estate of each of the bankrupts.

(2) Where a dividend is received from the estate of one of the bankrupts, the parties liable on the bill, who are not bankrupts, as well as the estates of the other bankrupts, shall be only discharged to the extent of the dividend so received.

Right of recourse bared by lapse of time.

Where one or more of the parties liable on the bill are bankrupt.

242. (1) Nevertheless, where the holder of a bill accepts a voluntary arrangement with the drawer or the acceptor, he shall lose his right of recourse against all the endorsers.

(2) Where the arrangement is made with one of the endorsers, the holder loses his right of recourse against all the subsequent endorsers, bu t preserves his rights against the acceptor. He preserves his rights also against the prior endorsers and the drawer, unless su ch endorsers or d r awer prov e that t h ey have b e en prejudiced by such arrangemen t an d pr ov id ed th e h o l d er has expressly reserved his rights against them.
(3) Where the arrangement is made with the drawer, the acce ptor , if he has not bee n put in funds, shall be entirely discharged.
(4) Finally, where the arrangement is voluntarily made with the acceptor, and such acceptor has been put in funds, the holder loses

Where holder accepts voluntary arrangement.

his right of recourse against the drawer.

When right of recourse revives.

Payer entitled to have bill delivered up to him.

Acceptance and endorsements operative even if signature of drawer is forged.

Where bill contains forged acceptance or endorsement.

243. The right of recourse shall revive in favour of the holder against the drawer or endorser who, after the expiration of the times pres crib ed for th e prot es t, the n o tice , and the e x erc i s e of th e aforesaid righ t, has receiv ed on account , o r by way of compensation, or in any other manner, the funds assigned for the payment of the bill.

244. Any party liable on a bill of exchange shall, on paying the amount thereof, together with the interest and incidental expenses, be entitled to have the bill, duly discharged, delivered up to him.

245. The acceptance and the endorsements, if genuine, shall continue to be effectual, even if the signature of the drawer is forged or fraudulently altered.

246. If a bill contains a forged acceptance or endorsement, or a n ac ceptance or endorse m ent fraud ulent l y al tered, all th e e n dorsers and the drawe r, whose signa t ure s are genuine, shall continue to be liable on such bill.

OF PROTEST

Protest to be drawn up by a notary public.

247. Protests for non-acceptance or non-payment shall be drawn up by a notary public, who shall go to the place of business or residence of the party bound to accept or to pay, and request him to accept the bill or to pay the amount thereof.

Form of protest. 248. (1) The act of protest must contain a verbatim copy of the bill, of the acceptance, if the bill had been already accepted, of the en dorsem e nt s, and of t h e instru ct ions g i ven th erein, and must specify -
(a) the name of the person in whose favour the protest is made;
(b) the demand to accept or to pay made to the party against whom the protest is made;
(c) the fact whether the party bound to accept or to pay was present or absent;
(d) the reason of the refusal to accept or to pay;
(e) the date on which the demand was made or unsuccessfully attempted.
(2) In case of acceptance or payment for honour, the protest shall specify by whom, for whose honour, and in what manner the bill has been accepted or paid.

Ineffectual inquiries to be noted.

249. Where the notary has not been able to find the party bound to accept or to pay, or to ascertain whether such party has any place of business, or to discover his place of residence, he shall expressly state in the protest that his inquiries have been unsuccessful.

250. Where the demand for acceptance or payment is to be made to two or more persons, it shall be sufficient to draw up a single act of protest with respect to such demand.

251. No other act by the holder of the bill can supply the want of the act of protest, saving the cases provided for in articles 199,

200, 201 and 202 with regard to lost bills.

A single act of protest to be drawn up even where the demand is to be made to several persons.

Want of protest cannot be supplied by other means.

OF RE-EXCHANGE

252. Re-exchange is effected by means of a re-draft.

253. A re-draft is a fresh bill drawn by the holder in order to recover from the drawer or from one of the endorsers the amount due to him as holder of the protested bill, in accordance with the provisions of article 256.

254. Re-exchange is regulated according to the course of exchange of the place in which the re-draft is drawn on the place where the reimbursement is to be made.

255. A re-draft must be accompanied by an account termed

"account of re-draft".
256. (1) Such account shall comprise - (a) the amount of the protested bill;
(b) the expenses of the protest, and other lawful expenses,
such as those of commission, brokerage and postage;
(c) the name of the party on whom the re-draft is drawn, and the rate of exchange at which it is negotiated, such rate of exchange to be certified by a broker or two merchants.
(2) The said account shall be accompanied by the protested bill and the protest.

How effected.

Definition of re- draft or retraite bill.

How re-exchange is regulated.

Re-draft to be accompanied by account of re-draft.

Contents of account.

257. Where there is no course of exchange between the place at which, and the place on which a re-draft is drawn, the re-exchange shall be reckoned according to the course of exchange on the place nearest to that on which the re-draft is drawn.

258. Interest on the sum specified in the bill protested for non- pa ym e n t , on th e ex p e n s es o f p r ot est , an d o n al l o t he r l a w f ul expenses, shall be recoverable as from the day of the protest.

259. No payment may be claimed on a re-draft unless the account of re-draft be accompanied by the certificate prescribed in article 256.

Where there is no course of exchange between place where re-draft is drawn and place on which it is drawn.

Interest.

Absence of certificate bars claims on re-draft.

Sub-title II

OF PROMISSORY NOTES, AND DRAFTS OR CHEQUES ON

BANKERS OR CASHIERS

Provisions relating to bills of exchange applicable to promissory notes.

Contents of promissory note.

260. The provisions applicable to bills of exchange, and relating to endorsement, joint and several liability, aval, time of maturity, payment, payment for honour, protest, duties and rights of the holder, and re-exchange, shall apply to promissory notes.

261. (1) A promissory note shall state the date, the amount to be paid, the person in whose favour or to whose order such note is signed, the time when payment is due, and the value supplied in cash, goods, in account or in any other manner.

(2) It may also be drawn payable to bearer.

Drafts or cheques. 262. (1) Drafts or cheques on bankers or cashiers shall be dated, and shall specify the sum to be paid, and shall be made payable to a person therein named, or to his order, or to bearer.

(2) They shall be payable on presentment.

Consequence of delay in presenting cheque.

263. Where the holder of a cheque fails to cash it within three days from the date thereof, and, after such time, the ba nker or cashier refuses to pay, the holder who has received the cheque from a third party has no right of recourse against such party, nor against the maker of the cheque, if the latter proves that he had in the hands of the banker or cashier sufficient funds to meet the cheque, and that such funds did not cease to be available through his fault.

TITLE VIII

Definition of account current.

Ownership of remittances.

Items of debit and credit.

OF THE CONTRACT OF ACCOUNT CURRENT

264. Account current is a contract whereby two persons covenant that their mutual remittances be entered in an account as items of debit and credit, subject to the obligation of the party against whom a balance is found at the time the account is wound up to pay such balance.

265. Every remittance made in pursuance of such contract shall be deemed to pass in absolute ownership from the remittor to the remittee.

266. The items of debit and credit shall be deemed to be two indivisible amounts:

Provided that, in default of an agreement to the contrary, every right of action or defence relating to any act or contract giving rise to each separate remittance shall remain unimpaired; and, where any such act or contract is annulled, the items relating thereto shall be struck out of the account.

267. (1) The party who has included in the account a debt secured by a pledge or a hypothec shall be entitled to enforce such security for the payment of any balance which may be found for him.

(2) The provisions of this article shall also apply with regard to any c l a im pas s ed to ac count current which is s ecure d by the obligation of a surety or a co-debtor.

Where secured claim is passed to account current.

268. (1) All remittances of debts due, whatever their origin, shall be deemed to be passed to account current under the clause "subject to collection".

(2) If any such debt remains unpaid, the remittee may elect either to strike the item out of the account or to sue the remittor thereof for the payment of the debt.

Remittances of debts due.

269. Any creditor of any of the parties to an account current may sue out a garnishee order against his debtor in the hands of the other party to the account, provided that any such order shall be operative only when and if a final balance is found for such debtor on the winding up of the account.

270. (1) It shall not be lawful for the debtor, after the execution of the garnishee order referred to in the last preceding article, to impair his credit account by fresh remittances:

Provided that any remittance the title to which accrued in favour of the other party to the account current before the issue of the garnishee order, shall not be deemed to be a fresh remittance.
(2) The party to the account current in whose hands the attachment is made may, on being served with the garnishee order, demand the dissolution of the contract.

Garnishee order against a party to an account.

Debtor not to impair his position in account current.

271. Save as otherwise agreed upon between the parties, an account current shall be wound up yearly.

272. The death, or the supervening disability, or the bankruptcy of a party to an account current shall not operate so as to determine the contract, unless the heir, or representative, or the other party to the account, as the case may be, elects to determine the contract by means of a judicial intimation to that effect within three months from the happening of any of the aforesaid events.

Account current to be wound up yearly.

Effects of death, disability or bankruptcy of

party to an account current.

PART II

OF MARITIME TRADE AND OF NAVIGATION

Contract of affreightment.

Different kinds of affreightment.

Title I

OF THE CONTRACT OF AFFREIGHTMENT

Sub-title I

GENERAL PROVISIONS

273. A contract of affreightment is an agreement for the hire of a vessel.

274. The affreightment can be -

(a) for the entire vessel or for a part thereof; for one or more voyages;
(b) for the conveyance of goods in a general ship or á la cueillette that is, when the master receives goods separately from several persons and engages to ship and convey such goods.

When contract is to be made in writing.

Rules as to time for loading and discharging, in the absence of agreement.

275. Where the vessel, chartered whether in whole or in part, is of more than thirty tons tonnage, the contract is null unless made in writing.

276. If the period for loading and discharging is not fixed by agreement, the following rules shall be observed:

(a) The period for loading or discharging in Malta is of eight days, if the vessel is of one hundred tons or less; of twelve days, if the vessel is of more than one hundred tons but not more than two hundred; of twenty days, if the vessel is of more than two hundred tons. Such period shall be reckoned from the time when the master declares that he is ready to load or discharge.
The days mentioned in this article are successive working days.
(b) Outside Malta, the period for loading or discharging shall be determined according to the laws and usages of the place of loading or discharging and if the loading or discharging is to be effected in different places, the period shall be determined according to the laws and usages of the place where the last portion of the cargo is loaded or discharged.

Where loading or discharging is to be effected at different places.

Where person letting vessel makes untrue statement as to tonnage thereof.

277. Where a portion of the cargo is to be loaded or discharged in one place and the remainder in another, the time employed in proceeding from one place to another shall not be computed in the time limited for loading or discharging.

278. (1) If the person letting the vessel declares the vessel to be of a tonnage greater than her real tonnage, he shall be liable to a proportionate abatement of the freight, and shall be answerable for damages and interest to the freighter.

(2) The provisions of this article shall not apply, where the difference between the declared tonnage and the real tonnage does not exceed a fortieth part of the real tonnage.

279. The payment of the freight can be demanded immediately after the delivery of the cargo.

280. (1) Where the vessel is chartered by the month, the freight runs from the time of the commencement of the voyage.

(2) A voyage is deemed to be commenced as soon as the vessel has left the place where the loading commenced, or if the vessel sails in ballast, from the place where the ballast was shipped.

When freight can be demanded.

When freight commences to run in cases where vessel is chartered by the month.

281. The buyer or any other successor is bound to abide by the terms of the contract of affreightment stipulated by the seller or any other prior possessor of the vessel.

Buyer, etc., bound by affreightment previously stipulated by the seller, etc.

Sub-title II

OF THE RIGHTS AND DUTIES OF THE PERSON LETTING THE VESSEL AND THE FREIGHTER

282. If the freighter has not shipped any portion of the cargo within the period fixed in the contract or determined by law, the person letting the vessel may, at his option, either -

(a) claim the indemnity fixed in the contract, or, failing any covenant thereanent, an indemnity to be assessed by experts; or
(b) rescind the contract, and claim from the freighter half the freight; or
(c) on the lapse of two days from the date of service of a protest, undertake the voyage without a cargo, and, on the completion of the voyage, claim from the freighter the freight in full, besides the amount of demurrage, if any, and the expenses incurred for the protest and for any other act which it was necessary for him to make.

Where freighter does not ship any portion of cargo.

283. If within the period aforesaid, the freighter has shipped only a portion of the cargo, the person letting the vessel may, at his option, either -

(a) demand the indemnity mentioned in the last preceding article; or
(b) on the lapse of two days from the date of service of a protest, undertake the voyage with the portion so shipped, and claim the freight, the demurrage, and the expenses, as provided in the last preceding article.

Where freighter ships only a portion of cargo.

Contribution to general average where freighter fails to ship cargo, or ships only a portion thereof.

Where freighter abandons contract.

Person letting vessel may take in other goods in the place of those not shipped by freighter.

284. If during the voyage the vessel which has sailed without a cargo, or with a portion only of the cargo, sustains a loss which would have given rise to a general average in case the vessel had taken on board a full cargo, the person letting the vessel may claim from the freighter a contribution reckoned on two-thirds of the goods which the latter failed to ship.

285. If the freighter has not shipped any portion of the cargo, and abandons the contract before the commencement of the period of demurrage, he must pay to the person letting the vessel half the freight.

286. (1) Where the person letting the vessel is entitled to sail without a cargo, or with a portion only of the cargo, he may, for the purpose of securing the fr eight and the contribu tion to general average, take in other goods, ev en wit hou t the consen t o f the freighter.

(2) In any such case the freight for such other goods shall be ac counted to the original frei gh ter, w h o sh all , m o reov er, be discharged from such contribution to general average as shall have been paid by such other goods.

When freighter ships more than agreed upon.

Liability of person letting the vessel for delay.

Time for sailing where affreightment is for conveyance of goods in a general ship.

Right of shippers in contract for conveyance of goods in a general ship.

287. Where the freighter ships more than was agreed upon, he shall pay freight on the excess at the rate stipulated for the quantity agreed upon.

288. If the vessel is not ready, and is not in a state to receive the goods at the stipulated time, the person letting the vessel shall be liable to pay damages and interest to the freighter.

289. Where the affreightment is for the conveyance of goods in a general ship, the master shall sail with the first favourable wind or on the first favourable opportunity after the expiration of the period during which it was agreed that the vessel would take in her lading, unless a further delay be agreed to by the shippers.

290. (1) If in a contract for the conveyance of goods in a general ship, the day for the sailing of the vessel is not fixed, it shall be lawful for each of the shippers to withdraw his own goods without payment of freight, on returning the bills of lading signed by the master, or giving security for such bills as may have already been forwarded, and on paying all the expenses for the loading and unloading of such goods.

(2) Nevertheless, where, in any such case, the vessel has already on board more than one-half of the cargo, the master shall sail wi th the fi rst favo urable wind or on the f i rst f a v ourabl e opportunity, if he is required to do so by means of a protest by the shippers representing the greater part of the cargo, and he shall so sail not later than eight days from the service of such protest; in such case no one of the shippers shall be allowed to withdraw his goods.

Where vessel is arrested through fault of freighter, etc.

291. If a vessel is arrested at the time of departure, or during the voyage, or at the place of discharge, on account of the act or negligence of the freighter or any of the shippers, such freighter or shipper shall make good to the person letting the vessel and the

other shippers all damages and interest.

292. The person letting the vessel shall be liable in damages and interest to the freighter, if, on account of the act or negligence of the former, the vessel is detained or delayed at the tim e of departure, or during the voyage, or at the place of discharge.

293. If, without the knowledge or concurrence of the person letting the vessel or of the master, the freighter or the shipper loads goods the importation or exportation of which is prohibited, or, by any other unlawful act during the time of loading or unloading, causes injury to the vessel or to other interested parties, he is bound t o mak e go od any d a mages, and, ev en thoug h the goo ds are co nfiscated, to pay t h e full freight, and to cont ribute to wards general average, if any.

294. (1) If the master is obliged to refit the vessel in the course of the voyage, the freighter or the shipper is bound to await the carrying out of such refitting, unless he elects to withdraw his goods, in which case he must pay the full freight and contribute towards general average, saving the provisions of article 324.

(2) If the vessel is chartered by the month, the freight shall co ntin ue to run duri ng th e tim e of refi ttin g, but i f th e vessel is chartered by the voyage, no increase of freight may be claimed.
(3) If the vessel cannot be refitted, the master must charter another vessel or other vessels to carry the goods to the place of destination.
(4) If the master is unable to charter such other vessel or vessels at t he same pl ace or at a place nearby, freight is due in proportion to the part of the voyage performed.
(5) In the case mentioned in sub-article (4) of this article, the duty to provide for the conveyance of the goods shall devolve on the shippers severally, but the person letting the vessel shall be bound not only to inform them as to his situation, but also to take meanwhile all such steps as may be necessary for the preservation of the cargo.

Where vessel is detained or delayed through fault of person letting the vessel.

Where freighter loads forbidden goods, etc.

Where vessel requires refitting.

295. The person letting the vessel loses his freight and is answerable for damages and interest to the freighter, if the latter proves that the vessel was unseaworthy when she sailed.

296. The freighter may in the course of the voyage withdraw the whole of the goods, or a portion thereof, provided no injury or delay be caused thereby to the other freighters, and provided he pays to the master the whole freight for the goods withdrawn, as wel l as a ny co nt ri bu ti on t o ge neral av erage or ot her i nd em ni ty w h ich may b e due, acco r din g t o cir c u m stances, savi ng the provisions of article 324.

297. Where, in the course of the voyage, the cargo has by reason of any peril of the sea become incapable of being carried, it shall be lawful for the freighter to withdraw it on paying the freight in proportion to the voyage performed; but if the cargo has become so inc apab le by i ts ow n i nh erent v ice, th e fre ig hte r mu st, if h e withdraws the cargo, pay full freight.

Where vessel was unseaworthy at the time of sailing.

When freighter may withdraw goods in the course of the voyage.

Where cargo becomes incapable of being carried.

Freight on goods sold during voyage.

Freight in respect of jettisoned goods.

No freight due for goods lost by shipwreck, etc.

Freight is due where goods are saved,

298. The freight on goods which the master has been compelled to sell in the course of the voyage for refitting the vessel, or for buying sails, ropes, or other apparel, or provisions, shall be payable in full, if the vessel arrives in safety, or in proportion to the voyage performed, if the vessel is wrecked.

299. The freight in respect of goods jettisoned for the common safety shall be payable by contribution as a general average.

300. No freight is due for goods lost by shipwreck, stranding, or any other vis major, and the person letting the vessel is bound to refund the freight paid to him in advance.

301. (1) If the goods have been saved from shipwreck or other accident, freight is due to the person letting the vessel as far as the place of the accident.

(2) The entire freight is due to him if he carries the goods to their place of destination.

unless saved without co- operation of master.

302. No freight is due for goods, forming part of the cargo, which may have been saved at sea or on the coast, without the co- operation of the master.

Discharge of cargo. 303. After the expiration of the period agreed upon in the contract, or fixed by law for unloading, the person letting the vessel or the master can compel the freighter or the consignee of the goods to proceed to the unloading of the vessel, and to pay the freight and average.

When person letting vessel or master may discharge and deposit goods.

Master cannot detain goods on board.

304. If, the lay days having elapsed, any dispute arises with regard to the unloading of the vessel, the person letting the vessel or the master may discharge the goods, and put them on deposit in the hands of a third party, without prejudice to his right over such goods.

305. (1) The person letting the vessel or the master cannot detain th e go ods on board the vessel o n the plea of d e fau lt of payment of the freight, the general average, and other charges.

(2) Nevertheless, the person letting the vessel or the master can deposit the goods with a third party until the sum due to him is paid, and can, if such goods are perishable, demand that they be sold.
(3) Where the general average cannot be immediately adjusted, it shall be lawful to demand that a judicial deposit be made of a sum to be fixed by the court.

When master loses his remedy against the freighter or shipper.

306. Where the master unloads the goods without obtaining paym ent of the freigh t, average, and other charges, or without taking such precautions as are allowed to him by the laws in force at t h e place of discharg e, he shal l forfeit his right against th e freighter or the shipper, if such freighter or shipper proves that he has duly settled the amount of such freight, average, and charges with the person receiving the goods, or that he cannot, owing to the bankruptcy of such person, recover back such amount.

307. If the consignee refuses to receive the goods, the person letting the vessel or the m a ster may demand the sale of su ch quantity of the goods as may be required for the payment of the freight, average and other charges, saving the right of resort to the freighters or the shippers in case of insufficiency of the proceeds.

308. (1) The special lien or privilege which, under the provisions of paragraph (c) of article 2009 of the Civil Code, is com petent to the person letting the vessel or the master for the payment of the freight, extends also to average contributions and other charges.
(2) Such lien or privilege, however, both in regard to the amount of freight, and to the average and other charges, ceases on the expiration of fifteen days from the day of the delivery of the goods, notwithstanding that such goods may have not yet passed into the hands of third parties.

Where consignee refuses to receive the goods.

Lien or privilege extends to average and other charges. Cap. 16.

309. In all cases where the freight is agreed upon by the number, measure, or weight of the goods to be carried, the person letting the vessel is entitled to demand that the goods be numbered, measured, or weighed at the time of their discharge.

310. In no case can the freighter or the shipper demand a reduction in the freight.

311. The shipper cannot abandon for the freight goods which have d e creased in value or deteri orat ed wh et her by t h eir own inherent vice or by any fortuitous event. Nevertheless, if casks of wine, oil, honey, or other liquids have so leaked as to be empty or almost empty, such casks may be abandoned for the freight.

When goods are to be numbered, etc.

Freighter or shipper cannot demand reduction of freight.

When shipper may abandon goods for freight.

Sub-title III

OF THE DISSOLUTION OF CONTRACTS OF AFFREIGHTMENT

312. (1 A contract of affreightment is dissolved ipso jure, without any right of the parties to the contract to claim freight or indemnity, upon the happening, before the departure of the vessel, of any of the following circumstances:
(a) if the departure of the vessel is prevented by a vis major;
(b) if the exportation from the place of departure of all or any of the goods included in one and the same contract of affreightment is prohibited, or if the importation thereof is prohibited at the place of destination;
(c) if trade with the place to which the vessel is bound is interdicted.
(2) In every such case the freighter must bear the expenses of loading and discharging.

When contract of affreightment is dissolved ipso jure.

Breaking out of war.

313. (1) A contract of affreightment can be dissolved upon the demand of either of the parties if, before the commencement of the voyage, a war breaks out by reason whereof the vessel or the cargo or both ceases or cease to be considered as neutral property.

(2) If neither the vessel nor the cargo is free, the person letting the vessel and the freighter have no claim upon each other for compensation, but the expenses of loading and discharging shall be borne by the freighter.
(3) If the cargo only is not free, the freighter must pay to the person letting the vessel all the expenses necessary for fitting out the vessel, for the wages and the maintenance of the crew up to the day on wh ich the demand for th e dissol ution of th e cont ract is m a de, or, if the good s b e al ready on board, up to the d a y of unloading.
(4) If the vessel only is not free, the expenses of loading and unloading shall be borne by the person letting the vessel.

Person letting vessel maintains unimpaired his right for demurrage and average.

If vessel is freighted for more than one place of destination, and war breaks out before the completion of the voyages.

314. In the cases mentioned in the last two preceding articles, the person letting the vessel maintains unimpaired his rights with regard to demurrage and to general average, if any.

315. If a vessel, freighted for more than one place of destination, after the completion of one voyage, happens to be in the port wherefrom she is to undertake another voyage, and a war breaks out before the commencement of such other voyage, the following rules shall be observed:

(a) if neither the vessel nor the cargo is free -
the vessel shall stay in port until the conclusion of peace, or until she can sail with convoy, or in any other safe manner, or until further instructions are transmitted to the master by the owners of the vessel and of the cargo,
where the vessel is laden, the master may deposit the goods in a warehouse or in any other place of safe custody, until the voyage can be continued or until other measures are adopted,
the wages of the seamen and the expenses for the maintenance of the crew, warehouse rent and any other expense occasioned by the delay shall be borne, by way of general average, by the freighter and the person letting the vessel,
where the vessel is not laden, two-thirds of the expenses shall be borne by the freighter;
(b) if the vessel only is not free -
the contract for the intended voyage shall be dissolved upon the demand of the person letting the vessel,
where the vessel is laden, the person letting her or the master shall pay the expenses for loading and unloading, and they can only claim freight in
proportion to the voyages already performed, demurrage, and general average;
(c) if the cargo only is not free, and the freighter does not otherwise effect the shipment, the master may sail without the cargo, and complete the voyage undertaken. In any such case, the person letting the vessel or the master is entitled, on completion of the voyage, to claim the whole freight, and the provisions of articles 284 and 286 shall also apply:
Provided that if the freighter is absent they shall use all due diligence to obtain a cargo from other persons.

316. (1) Where a vessel is freighted to proceed in ballast to another port, there to be laden for a voyage, the contract shall be dissolved if, when the vessel is on her way to, or has arrived at the place of loading, a war breaks out, which prevents the continuation of the voyage; and no claim to compensation shall be competent to either party, if the restraint affects the vessel alon e, or both the vessel and the cargo.

(2) If, on the contrary, the vessel is free, but not the cargo, the freighter shall pay half the stipulated freight.

Where war breaks out before, or on arrival of the vessel at the place of loading.

317. If, whilst a vessel is on a voyage, trade with the country to wh i ch t h e ve sse l i s p r o cee di n g i s in t er d ic te d, a nd th e v esse l i s obli ged to retu rn with th e carg o, fr eigh t i s due f or th e out ward voyage only, even though the vessel may have been chartered "out and home".

318. (1) Where an embargo or any other reason of force majeure causes a temporary suspension of the voyage of a vessel whether before the vessel’s departure or during the voyage, without any fault of the master, the owner, or the freighter, the contract shall continue to subsist, and neither party is liable for damages for delay.
(2) Freight shall also be due during the detention of the vessel, if the vessel is chartered by the month; but no increase is due, if the vessel is chartered for the voyage.
(3) The shipper can have his goods discharged during the detention at his own expense, on condition of re-loading them or of indemnifying the person letting the vessel or the master.

Interdiction of trade.

Embargo.

319. If the port to which the vessel is bound is blockaded, the master must, in the absence of instructions to the contrary, proceed to such one of the neighbouring ports of the same State as he may be allowed to put into.

320. All the rules contained in this sub-title shall apply to the contract for the conveyance of merchandise in a general ship or á la cueillette.

Blockade.

Conveyance in a general ship.

Sub-title IV

OF BILLS OF LADING

Bill of lading. 321. The bill of lading shall be signed by the master, and given to the shipper, and a duplicate shall be signed by the shipper, and given to the master.

How drawn and transferred.

322. (1) The bill of lading may be drawn to order or to bearer or in favour of a party named therein.

(2) It may be transferred by endorsement even in blank.

Parts of bill of lading.

Goods cannot be withdrawn without the bills of lading.

323. The master shall give as many parts of a bill of lading as are asked for by the freighter or the shipper.

324. (1) Freighters or shippers cannot withdraw the goods, already shipped, without returning to the master the bills of lading received in respect of such goods.

(2) If one bill of lading or more than one shall have been forwarded , it sh all not be com p et ent to the freighters or the sh ippers to withd r aw the af oresaid g oods except upon givi ng sufficient security in respect of any consequences which may arise from the forwarding of such bill or bills, and under the obligation, in all cases , of paying the entire freight, the expenses for discharging the goods, and those occasioned by the displacement of the remainder of the cargo, saving the provisions of article 290 and any other provision of law.

Persons between whom bill of lading is binding.

When different parts of a bill of lading are at variance.

Agents or consignees to give receipt.

325. A bill of lading is conclusive evidence between all persons concerned in the cargo, as well as between them and the insurers, saving any proof to the contrary.

326. If there is a variance between bills of lading of the same car g o , the one which is in the hands of the master shall be conclusive evidence if it is filled up by the shipper or his agent; and that presented by the shipper or by the consignee is conclusive evidence, if filled up by the master.

327. Every agent or consignee on receiving the goods specified in the bill of lading or in the contract of affreightm ent shall be bound to give the master a receipt for such goods, under penalty of paying all the expenses, damages, and interest, including those occasioned by the delay.

Sub-title V

OF PASSENGERS

If passenger fails to go on board at appointed time.

328. If the passenger fails to go on board, or, without the permission of the master, absents himself from the vessel at the ti me appointed fo r the departure t hereo f, th e m aster shall be at liberty to sail, and may claim the entire amount of passage money.

329. A passenger cannot, without the consent of the master, transfer to a third party the right accruing to him from the contract.

330. (1) If the passenger dies before the commencement of the voyage, only half the passage money shall be due.

(2) Where in any such case the cost of provisions is included in th e pass age m o ney a g reed up on , such co st sh all be dedu ct ed therefrom.

Passenger cannot transfer his right.

If passenger dies before commencement of voyage.

331. (1) If the vessel’s voyage be interrupted or suspended, whether before the departure or in the course of the voyage, by a vis major, or by any cause beyond the master ’s control, the passenger and the master shall be released from their mutual obligations, and neither of them can claim compensation from the other.
(2) In the case, however, of the interruption of a voyage after th e co mmen ceme n t there o f, t h e pa ss enge rs s h all pay pa ss age money in proportion to the part of the voyage performed.

Interruption of voyage.

332. If in the case contemplated in article 294 a passenger is willing to await the refitting of the vessel, the supply of provisions during the delay shall be at the charge of the master, if he has undertaken to furnish provisions during the voyage.

333. Passengers shall obey the orders of the master in all matters concerning the preservation of order on board the vessel.

334. The master is neither bound, nor authorized, to put into a port, or to stop during the voyage, at the request or for the benefit of a passenger.

335. Passengers shall, in the absence of an agreement to the co ntrary, pro vide for their own maint en ance; but the m ast er is, when required, bound to supply to a passenger at a fair price such provisions as may be necessary.

336. If a passenger dies in the course of the voyage, the master shall provide for the custody of such effects of the deceased as are found on board.

337. The master shall, for the payment of the passage money and the cost of provisions, have a right of retention over the effects brought on board by a passenger, in addition to the same special privilege as is competent to the creditors mentioned in paragraph (b) of article 2009 of the Civil Code.

Passenger entitled to provisions during delay.

Passengers to obey master’s orders.

Master not to deviate at request of passenger.

Maintenance of passengers.

Property of deceased passenger.

Right of retention.

Cap. 16.

Title II

OF CONTRACTS OF LOAN ON BOTTOMRY AND AT RESPONDENTIA

Arti cles 33 8 t o 36 0, b o th inclusive, re pea l ed b y : XXXVII.

1988.41.

Contracts of insurance to be made in writing.

Title III

OF MARINE INSURANCE

Sub-title I

OF THE CONTRACT OF MARINE INSURANCE

361. (1) Contracts of insurance must be made in writing, under pain of nullity.

(2) They may be made by a private writing, which is called a policy. No blank space shall be left in the policy.
(3) There shall be stated in the contract the date of the day on which it is signed, and whether the contract was made before or after noon.

One contract may contain several insurances.

362. (1) The same contract may contain several insurances, whether b y reaso n of th e thi ngs insured, or of the rate of th e premium, or of the several insurers.

(2) Where by the same contract things, even of a different kind, shipped in the same vessel, are insured in favour of one person only, one insurance only is deemed to be made.
(3) Where the insurers are two or more, and they do not sign the contract at the same time, each of them shall, before signing, state the day and hour of the affixing of his signature.

Transfer by endorsement.

Things that may be insured.

363. The policy is transferable by endorsement.

364. (1) The insurance may be upon the hull of the vessel, whether laden or in ballast, fitted out or not fitted out, sailing alone or with ot hers; her tackl e an d apparel; her equipment; her provisions; all that which may have been expended for the vessel up to the day of her departure; the sums lent on bottomry and the interest thereon; the cargo; the anticipated profits; the stipulated freight; and upon all other things capable of being estimated in money, and subject to the perils of navigation.

(2) An insurance of the vessel, without any other explanation, includes the hull, the tackle and apparel, and the equipment.

When and for what period insurance can be made.

365. (1) An insurance may be made on the whole or on a part of the above-mentioned things, jointly or separately.

(2) It may be made in time of peace or in time of war, before or during the voyage of the vessel.
(3) It may be for a voyage "out and home", or only for one of the two ; for a wh ole voy ag e or for a d e f i ni te p e ri od ; f o r a determinate voyage and for a defini te period jointly; for all the voyages and passages by sea, through rivers or navigable channels.

Duration of risks. 366. If both the voyage and the time are specified in the contract of insurance, the insurer shall run the risks of the entire voyage. Where the duration of the voyage exceeds the time sp eci fi ed, th e p r e m i u m shal l be in cre a sed in p r o p o r ti on to t h e ex cess. Wh ere the v oyage i s compl e t e d in less th an t h e ti me

specified, the premium agreed upon cannot in any way be reduced.

367. If the assured does not know on board of which vessel the goods are shipped, such goods can be insured as shipped on board a vessel unknown to the assured.

368. If the nature or the kind of the goods is not stated in the contract, the goods can be insured under the general description of merchandise; but such insurance shall not include gold or silver coins or ingots, or pieces of gold and silver, or diamonds, pearls, gold ware, or munitions of war.

369. If the value of the thing insured is fixed in the contract in foreign money, it shall be reckoned at the value of such foreign money in Malta, according to the rate of exchange at the time of the stipulation of the contract.

370. If the value of the goods is not stated in the contract, such value can be proved by the invoices and the books: in the absence thereof, the goods shall be valued according to the market price at the time and place of loading, including all duties paid and charges incurred up to the time the goods have been shipped.

371. The anticipated profit is proved by means of the lists of prices current, or, in the absence thereof, by such other means as may establish the amount of profit which might have reasonably been obtained if th e goods insured h a d reached their place of destination after a voyage without any accident.

372. Where by such lists of prices current or other means it is proved that, in case of safe arrival, the profit would have been less than the sum stated in the contract by the assured, the insurer is discharged on paying such lesser sum. If the goods insured would have yielded no profit, nothing shall be due by the insurer.

373. (1) The amount of the freight is proved by the contract of affreightment, or by the bill of lading.

(2) Failing such evidence, and in regard to goods belonging to the ship-owners themselves, the amount of the freight shall be fixed by experts.

Goods insured on vessel unknown to the assured.

When nature of goods is not stated in the contract.

Goods valued in foreign money.

Proof of value of goods.

Proof of anticipated profit.

Where profit is less than the sum declared by assured.

Proof of amount of freight.

37 4. If th e pe ri o d of th e ri sk i s not s t at e d i n th e co nt ra c t o f insurance, such risk shall commence to run and shall come to an end as provided in article 355.

375. When goods have been insured, the period of the risk shall run without any interruption even in cases where, after the vessel had dropped anchor at an intermediate port, the master has been compelled t o un load th e cargo f o r th e p u rpose of r e fit ting the vessel; but the period of the risk shall end if the voyage is legally interrupted, or whenever the assured has ordered the goods not to b e reship ped, or, l a st ly, immed i ately on th e comp letio n of the voyage.

376. The risk in regard to an insured freight shall commence, as far as the insurer is concerned, as and when the goods contributing to the freight are shipped, and shall end on their being landed.

Period of risk.

Period of risk in regard to goods,

in regard to freight,

in regard to

insurers of loans on

bottomry,

in regard to anticipated profits.

Anticipated profits to be valued separately.

377. In regard to insurers of sums lent on bottomry, the period of the risk shal l comm ence and end simultaneously with the beginning and the end of the risk of the lender, in terms of law, and according to such agreements as are notified to the insurer.

378. The period of the risk in regard to anticipated profits shall be the same as that in regard to goods.

379. (1) Where an insurance has been made on anticipated profits, such profits shall be estimated separately in the contract, with an indication of the goods in regard to which such profits are anticipated.

(2) In case of a valuation in gross of the subject insured, with an express covenant that the surplus value shall be considered as the anti cipa ted profit s, th e in surance shall only be good to the extent of the cost of the subject insured, and of such amount of anticipated prof its, over and above the cost, as may be proved under articles 370 and 371.

Reinsurance. 380. (1) It shall be lawful for the insurer to reinsure with another person things which he has insured.

(2) The assured may insure the cost of the insurance.
(3) The premium of the reinsurance may be greater or less than that of the insurance.

Increase of premium on outbreak of hostilities.

Seaman or passenger having goods insured to deposit bill of lading.

Amended by: XXXI.1966.2;

LVIII.1974.68; XXIV.1995.362.

381. If, after the commencement of the risks contemplated in the contract of insurance, a war breaks out, and, in consequence thereof, the subject insured is exposed to greater danger, it shall be competent to the insurer to demand an increase of the premium, and, if such increase is not agreed upon by the parties, it shall be fixed by the court, regard being had to the circumstances causing the increase of the danger.

382. (1) A member of the crew or a passenger having on board the vessel in or on which he is serving or is carried, goods insured in Malta shall deposit a bill of lading in the Civil Court, First Hall, if the shipment is made in Malta; if the shipment is made outside Malta, such bill of lading shall be deposited with the diplomatic or consular representative of the Government of Malta in that port or with a person serving in a diplomatic, consular or other foreign service of any country which, by arrangement with the Government of Malta, has undertaken to represent that Government’s interests i n t h at po rt or w ith a perso n auth orised in th at b e hal f by the President of Malta, or, in the absence of such persons, with some

trustwort hy m e rchant being a citizen of Malta or other
Commonwealth citizen, or with a local magistrate.
(2) If the goods insured belong to the master, the bill of lading shall be signed by two of the principal members of the crew, and, in case of any disaster, the master shall also be bound to prove to the insurers the purchase of such goods.

Bankruptcy of the insurer or the assured.

383. (1) If the insurer becomes bankrupt before the termination of the risk, the assured may demand either that security be given or that the contract be rescinded.

(2) The same right shall be competent to the insurer in case of bankruptcy of the assured, if the premium has not been paid to him.
384. A contract of insurance is null, if made upon - (a) the pay or wages of members of the crew;
(b) the premium or primage payable to the master;
(c) vessels or goods charged, before the commencement of the voyage, with a loan on bottomry for their entire value:
Provided that if such vessels or goods are only in part charged with such loans, the contract of insurance shall be valid for the excess of their value over the sum borrowed.

When contract of insurance is null.

385. (1) Any concealment, or any misrepresentation by the assured, or any discrepancy between the contract of insurance and the bill of lading, shall render the contract of insurance void, if such concealment, misrepresentation, or discrepancy is such as to le ssen th e estimate of the risk, or to change the subject- matter thereof.

(2) The insurance shall be void even if the concealment, misrepresentation, or discrepancy shall have had no effect upon the damage or loss of the things insured.

Concealment or

mis-representation.

Sub-title II

OF THE RIGHTS AND OBLIGATIONS OF THE INSURER AND OF THE ASSURED

386. (1) If the voyage is abandoned, even though by the act of the assured, before t h e insurer h a s b e gun t o run th e risk, th e insurance becomes void, and the assured is not bound to pay the premium, or, in case he has paid it, he shall be entitled to demand from the insurer the repayment thereof.

(2) The insurer, however, shall receive, by way of compensation, one half per centum on the sum insured, or one half of the premium, if the whole premium does not amount to one per cent.

Where voyage is abandoned before commencement of risk.

387. Any loss or damage which happens to the things insured by reason of stress of weather, shipwreck, stranding, fortuitous collision, compulsory deviations, or changes of voyage or vessel; or by reason of jettison, fire, capture, pillage, piracy, arrest and restraint of princes and peoples, declaration of war, reprisals; or in general by reason of any other peril of the sea, shall be at the risk of the insurer, unless the insurer shall have covenanted his exemption from one or more of such risks.

Risks borne by insurer.

Voluntary deviations, etc., not to be borne by insurer.

Inherent vice of subject insured.

388. Any voluntary deviation, or change of voyage or vessel, and any loss or damage proceeding from the act of the assured, is not at the risk of the insurer, and he shall be deemed to have earned his premium, if the time of his risk has commenced.

389. (1) In the absence of an express agreement to the c o ntra ry, the insurer is in no case a n swerable for dama ge s or averages proceeding directly from an inherent vice or from the nature of the subject insured.

(2) Where an insurer is bound to pay for damages occasioned by leaking or liquefaction, the leakage or diminution to which the thing insured is ordinarily subject shall be first deducted.

Barratry. 390. (1) In the absence of an agreement to the contrary, the insurer shall not be answerable for such malversations or faults of the master or crew as are known by the name of barratry of the master.

(2) Any such contrary agreement is ineffectual in regard to such portion of the subject insured as belongs to the master.
(3) The insurer shall, however, be answerable for the unskilful- ness of the master or crew.

Collisions. Amended by: XXII.1976.4.

Cap. 234.

391. (1) In cases of damage caused by a collision of vessels, the insurer shall be liable to make good the damage if the collision was accidental or was caused by the fault of the master or the crew of another vessel.

(2) Where, however, it is proved that both the vessel insured as well as the other vessel were in fault, or where it is doubtful to whose fault the collision is imputable, the damage, in cases not provided for by the Merchant Shipping Act, shall be borne in equal portions by the colliding vessels; and, in such cases, as well as in the case of a collision caused by the fault of the master or the crew of the vessel insured, the insurer is not responsible, unless he has assumed liability also for cases of barratry of the master.
(3) The liability of the insurer, in the cases contemplated in this article, is limited to the damage sustained by the vessel insured, and does not extend to any indemnity which, by reason of the collision, may be due by the vessel insured to the other vessel.

Pilotage dues, etc. 392. The insurer shall not be liable for ordinary pilotage and towage dues, or any other kind of dues imposed on the vessel or the goods, unless such dues have been incurred in consequence of any damage for which the insurer is liable.

Clause “free from average”.

Clause “free from hostitilities”.

393. Where the insurance is contracted with the clause "free from average", the insurer is not answerable for any average, whether general or particular, except in cases which give rise to an abandonment.

394. (1) Where the insurance is contracted with the clause "free from ho st ili ties", t he i nsurer sh all be di scharg ed fro m all liability if the goo ds perish or are damaged by reaso n of any vio l en ce , ca ptur e , pill age , ar re st and re str a i n t of pr inc e s a n d peoples, declaration of war, or reprisal.

(2) The contract of insurance shall cease as soon as the subject insured suffers any delay, or the course of the voyage is altered, by reason of hostilities.
(3) Nevertheless, the insurer shall not on such account be d i sch a r g ed fro m th e obl igatio n o f makin g g ood an y d a mage sustained before the commencement of hostilities.

395. Where any vessel or goods insured "free from hostilities" are, by hostile force, taken or detained in any port, such vessel or goods shall be deemed to be captures at sea, and the risk of the insurer shall cease.

396. Where the insurance is made separately on goods which are to be shipped on two or more vessels specified in the contract, with a statement of the amount insured on each vessel, and where the whole of such goods is shipped on one vessel or on a smaller number of vessels than that stated in the contract, the insurer is only liable for the amount which he has assured on the vessel or vessels receiving the goods, notwithstanding the loss of all the vessels so specified; and shall, nevertheless, be entitled to one half p e r centum on the am o unts the insurances whereof have thus become void.

397. (1) The insurer ’s risk ceases, and he shall be entitled to the premium, if the assured sends the vessel to a more distant port th an that stated in the co ntract, even though i t be in the same course.

(2) The insurance shall have its full effect if the voyage is shortened.

Vessel, etc., detained in port by hostile force.

Insurance on goods to be shipped on two or more vessels.

Where voyage is prolonged or shortened.

398. (1) The assured is bound to communicate without delay to the insurer any information which he receives concerning the loss of the subject insured, and to furnish the insurers, if required, w ith co pies or ext r acts o f any document con v eying such information.

(2) Otherwise, he shall bear the damages and costs.

Assured to give notice of disaster to insurer.

399. Unless and until the assured shall exercise the right of abando nment com p et ent to him , he is bou nd to use his best endeavours for the preservation or recovery of the subject insured.

400. In case of an insurance on a loan on bottomry, the insurer, in the a b s e nce of an a g re emen t t o t h e co ntrary, shall not be responsible for any fraud on the part of the borrower.

401. Where the things insured are not dispatched, or only a part thereof is dispatched, the insurer shall receive one half per centum, or one half of the premium, according to the provisions of article
386, on the sum insured or on the sum exceeding the value of the goods dispatched, as the case may be.

402. A person effecting an insurance on behalf of another p e r s o n wit hou t d i sclosin g the n a me o f t h e latt er, sh al l not be enti tled t o reco ver the premium if such ot her perso n fails t o dispatch the goods insured, or dispatches only a part thereof.

Assured to endeavour to preserve or recover thing insured.

Insurer of loan on bottomry not liable for fraud of borrower.

If things insured are not dispatched.

Where undisclosed principal fails to dispatch goods.

Insurance for an amount over or under the real value.

403. (1) An insurance effected for an amount exceeding the value of the subject insured is void as regards the assured only, if fraud or deceit on his part be proved.

(2) If no fraud or deceit is proved, the insurance is valid up to the value of the subject insured, and, in regard to the excess, the insur e rs shall receiv e one half per cent um , o r on e half o f th e premium, according to the provisions of article 386.
(3) An agreement that the insurer shall be answerable for the whole amount stated in the contract, independently of the value of the subject insured, is valid.
(4) Where the insurance is effected for a value less than the real value, the insurer shall only be liable in proportion to the value stated.

Several contracts of insurance of the same subject.

404. (1) Where there are several contracts of insurance effected without fraud on the same subject, and the first contract covers the entire value thereof, such first contract only shall hold good.

(2) The insurers who have signed the subsequent contracts shall be discharged, and shall only receive one half per centum on th e sum insu red, or one half of th e premi u m, accor d in g to th e provisions of article 386.
(3) If the entire value of the goods loaded is not covered by the fir s t co ntr a ct , t h e i n sur e r s wh o have si gn ed t h e su bsequ e nt contracts shall be answerable for the remaining value, according to the order of the date of the contracts.

If there are goods on board to the full amount of the several insurances made.

If master is

allowed to touch at

different ports.

Return of premium in case of nullity of contract,

except in case of fraud, etc., of assured.

Insurance is null where insurer is aware of safe arrival of vessel, etc.

405. If there be goods on board to the full amount of the sums insured, and a portion of such goods is lost, the loss shall be borne by all the in surers of such goods ratably in proportion to their respective interest.

406. If the master is allowed to touch at different ports for the purpose of completing or changing his cargo, the insurer runs the risks of the goods insured, as provided in article 355.

407. In case of total or partial nullity of the contract of insurance, the insurer shall, provided the assured has acted in good faith, return the premium or, as the case may be, such proportionate part thereof as corre s ponds to th e am oun t recei v ed by h im in respect of risks which did not attach, dedu cting one-half per centum, or one-half of the premium as provided in article 386.

408. If the contract is avoided by reason of any deceit, fraud, or bad faith on the part of the assured, the insurer is not bound to return the premium.

409. Where an insurance is effected on vessels or goods which, at the time of the stip ul atio n of t h e cont ra ct of in surance, had a l ready reached their pla ce of de stination, or had sustained a disaster, such insurance is void, if it is proved, or can be presumed that, at th e time of the signing of the cont ract, the insurer was aware of the arrival of the subject insured, or, as the case may be, the assured was aware of the happening of the disaster.

410. Such presumption shall be deemed to exist whensoever, re ckoning at the rate of four miles to the hour, or whensoever, regard being h a d to the means of communicat i on o r other circumsta n ces, it is shown that t h e in fo rmat io n rel a ti ng to t h e arrival or loss of the vessel, from the place of such arrival or loss, or from the place whence such information first came, could have reached the place where the contract was made, before the signing of the same.

411. Such presumption shall also be deemed to exist whensoever, before the signing of the contract of insurance, any vessel shall have come to the place where the contract was made, fr om the place of the arrival or loss, or from the place wh ence information of such arrival or loss first came, provided such vessel shall have sailed from the said place after the arrival or loss.

412. (1) The presumption mentioned in the last preceding article shall not arise if the insurance is effected under the clause "good or bad news", or any other like clause.

(2) In such case the insurance cannot be avoided, unless it is proved that the insurer was aware of the arrival, or the insured of the loss, before the signing of the contract.

Facts which give rise to presumption of knowledge of arrival or loss.

Other facts giving rise to such presumption.

Clause “good or bad news”.

Sub-title III

OF ABANDONMENT

413. (1) The things insured may be abandoned in the following cases:

(a) shipwreck;
(b) stranding or running aground with partial wreck; (c) unseaworthiness occasioned by a peril of the sea; (d) forced abandonment;
(e) capture;
(f) arrest and restraint of princes and peoples;
(g) loss or deterioration of the things insured amounting to at least three-fourths of their value.
(2) Any other damage shall be deemed to be an average loss, and shall be settled between th e insurer and the assured in accordance with their agreements, and according to their respective interest.

Cases in which abandonment can be made.

414. The sale of the goods in consequence of a peril of the sea, during the voyage and before the arrival of such goods at the place of destination, is deemed to be a case of loss which authorises the abandonment, whatever the proceeds of such sale may be.

When sale of

goods gives rise to

abandonment.

Contributions to general average not considered in establishing value of loss or deterioration.

Assured may sue for abandonment or for average.

415. Where it is necessary to ascertain whether there is deterioration or loss corresponding to three-fourths of the value of the goods insured, the damages which arise from general average co nt ri bu tio ns are no t tak e n int o conside r ation. The expens e s relating to the sale of the said goods, and the expenses of the acts preparatory to the sale are, however, taken into consideration.

416. (1) In cases where the things insured may be abandoned, the assured may elect either to make the abandonment or to bring an action for average.

(2) It shall not be lawful for the assured, after having elected to bring an action for average, to waive such action, and bring an action for abandonment. He may, however, waive the abandonment, if not yet accepted by the insurers, and bring an action for average.

No abandonment before risk attaches.

Abandonment cannot be conditional or partial.

Time within which abandonment is to be made.

417. It shall not be lawful to make an abandonment before the risk insured against has attached.

418. The abandonment of the subject insured cannot be partial or conditional. It extends only to the property which is the subject of the insurance and of the risk.

419. (1) An abandonment to the insurer must be made within the time following:

(a) six months from the day on which information of the disaster is received, if it has happened on the coasts of Europe, or on those of Asia or of Africa in the Mediterranean, or, in the case of capture, from the day on which information is received that the prize was carried into any of the ports or places situated on the above-mentioned coasts;
(b) eighteen months to run from the aforesaid days respectively, if the disaster happened in, or the prize was conveyed to any other part of the world.
(2) When the said times have expired, it shall not be competent to the assured to make the abandonment.

Assured to give notice to insurer.

420. (1) In every case in which the right to abandon is competent, and in case of any other peril the risk whereof is to be borne by the insurer, the assured must give notice to the insurer of any information which he may have received thereon.

(2) Such notice shall be given without delay under pain of damages and interest.

When lapse of time gives right to abandonment without necessity of proving loss.

421. (1) If, upon the expiration of one year from the day of the vessel’s departure, or from the day to which the last news of the v e ssel relates, i n th e case of o r di nary voyages, or upon the expiration of two years, in the case of long voyages, the assured declares that he has received no news of the vessel, he shall be entitled to abandon, and to claim payment of the sum insured without any necessity of proving the loss of the vessel.

(2) Upon the expiration of the aforesaid times of one year or of
t w o years, the assured shall be al lowed, for t h e p u rpose of commencing proceedings, the times fixed in article 419.

422. (1) In the case of an insurance effected for a fixed period of time, when the times mentioned in the last preceding article have elapsed, the loss of the vessel shall be presumed to have happened within the period of the insurance.

(2) If there are several successive insurances for a fixed period of time, the loss is presumed to have happened within the period of the first insurance; or, in case of news received as contemplated in the last preceding article , within the period of that pa rticular insurance to which the date of the last news corresponds.

When loss is presumed to have happened in the case of “time policies”.

423. Long voyages are those having for their destination any coast or country situated beyond the Straits of Gibraltar, excepting the European sea coast as far as the Sound, the African sea coast as far as Cape Verde, the Baltic Sea, the British Isles, the Madeiras and the Canary Islands.

424. The assured may, by means of the notice mentioned in article 420, either abandon, and claim from the insurer payment of the sum assured within the time fixed in the contract, or reserve his right to abandon within the times fixed by law.

425. The assured shall, when making the abandonment, state all the insurances made, or caused to be made, or ordered by him, and the sums of money borrowed on bottomry or at respondentia. In default of so doing, the time for payment, which is to run from the day of the abandonment, shall be suspended until the day on which the assured shall make and notify such statement, but the period pre s cribed for making the aban d onm en t shal l not be enlarg ed thereby.
426. If the statement be fraudulent, the assured shall be deprived of the benefits of the insurance, and shall be bound to pay the sums b o rrow e d on bottom r y or at r e spon dentia , notwithstanding the loss or the capture of the vessel.

427. (1) In case of shipwreck or stranding with partial wreck, the assur e d i s bo un d to lab o u r fo r th e r eco ver y of t h e th ing s insured, without prejudice to the abandonment to be made in due time and at the proper place.

(2) The assured is entitled to the reimbursement of the expenses for recovery up to the value of the things recovered.

Definition of “long voyages”.

Assured may abandon at once or reserve his right to do so.

Statement to be made by assured in making abandonment.

Consequences of fraudulent statement.

Duty of insured in case of shipwreck, etc.

428. (1) If the time for payment is not stated in the contract, the insurer shall pay the sum insured four months after the notice of the abandonment.

(2) After the expiration of such time, the insurer shall also pay interest at the legal rate. The things abandoned shall be charged with the payment.

When sum insured is to be paid.

sued before proof of shipment and loss is furnished to him.

When court is to order provisional payment.

insured before the documents proving the shipment and the loss of the goods insured are notified to him.

430. (1) Where, in the opinion of the court, the defence of the insurers is such as to require a separate trial, the court shall order the insurers to make provisional payment to the assured of the sum insured, subject to the obligation of the assured to give security.

(2) Such security shall cease to be binding on the expiration of two years, if within such time no action shall have been brought by the insurers.

Effect of abandonment.

Abandonment of ship to include freight of things saved.

Arrest and restraint of princes and peoples.

431. Where an abandonment has been notified and accepted, or adjudged valid, the property in the thing insured vests in the insurer from the day of the abandonment, and the insurer cannot, under the excuse of the vessel’s return, avoid payment of the sum insured.

432. The freight of goods saved, even if paid in advance, is included in the abandonment of the vessel, and becomes likewise the property of the insurer, without prejudice to the rights of the lenders on bottomry, or of the seamen for their wages, or of other parties for the recovery of the expenses incurred during the voyage.

433. (1) In the case of arrest and restraint of princes and peoples, the assured shall, without delay, give notice to the insurer of the information received.

(2) The abandonment of the property arrested cannot be made until after six months from the day of such notice, if the arrest is effected in the Mediterranean or other European sea; or until after one year, if the arrest is effected in a more distant place.
(3) Such times shall commence to run from the day of the notice of the arrest. Where the goods arrested are of a perishable nature, the aforesaid times shall be reduced to two months in the former case, and to three months in the latter case.

Assured to endeavour to secure release of goods arrested.

434. (1) During the running of the times fixed in the last preceding article, the assured is bound to use all due diligence to obtain the release of the goods arrested.

(2) The insurers on their part may, either in concert with the assured or separately, endeavour to secure such release.

Abandonment on the ground of unseaworthiness.

Notice to be given to insurers of cargo.

Master to procure another vessel.

435. An abandonment on the ground of unseaworthiness cannot be made if the vessel can be repaired and made fit to continue the voyage to her place of destination, unless the expense of refitting the vessel is such as to exceed three-fourths of the value thereof, saving the right of action of the assured against the insurers for the recovery of the amount of the expenses incurred and the average sustained.

436. Where the vessel has been declared unfit for navigation, the party whose goods have been insured is bound to give without delay notice to the insurer of the information received.

437. The master is bound in such case to use all due diligence

t o pro c ure anoth e r v e ssel to car r y the go ods to their pl ace of destination.

438. The insurer shall run the risks of the goods reshipped on another vessel, in the case referred to in the last preceding article, up to the time of the arrival and discharge of such goods.

439. The insurer shall moreover be liable for all averages and all expenses incurred for the unloading, storage and safe keeping in warehouses, and reshipment of the goods, for any excess of freight, and for any other expense incurred in saving the goods, to the extent of the sum insured.

440. If within the time of two months the master is unable to pro cure ano ther v essel for th e resh ipm ent of t he g ood s and th e carriage thereof to the place of destination, it shall be lawful for the assured to abandon the goods.

Risks in case of reshipment.

Charges for which insurer is liable.

If master fails to reship goods

within two months,

the assured may

make

abandonment.

Title IV

OF AVERAGE AND OF JETTISON AND AVERAGE CONTRIBUTION

Sub-title I

OF AVERAGE

441. Every extraordinary expenditure made on behalf of the vessel or of the cargo, or of both, and every damage sustained by the vessel or the cargo from the time of the loading or the sailing up to the time of the return or discharge, fall under the description of average.

442. Failing special agreements between all the parties, averages are regulated in accordance with the following provisions.

443. There are two kinds of average: gross or general average, and simple or particular average.

444. The following are general averages:

(a) goods thrown overboard for the common safety, or for the benefit of the vessel and the cargo jointly;
(b) cables, masts, sails, and other rigging, cut away or broken for the said purpose;
(c) anchors, cordage or other things abandoned for the said purpose;
(d) any damage done by jettison to goods remaining on board;
(e) any damage voluntarily done to the vessel in order to facilitate the jettison, to lighten the vessel, or to save the goods, or in order to facilitate the running out of the water; and any damage sustained by the cargo from these causes;

Average.

Rules to be observed in the absence of special agreements.

General or particular average.

General averages.

of the repairs of the damage voluntarily sustained for the common safety;
(g) the expenses of unloading in order to lighten the vessel, and of putting into any port or other place, when the vessel is compelled to do so by stress of weather, pursuit of enemies or pirates, or any other cause for the safety of the vessel and the cargo;
(h) any damage caused to the vessel or to the cargo, or to both, if the vessel is voluntarily run ashore to avoid her capture or loss, or to save the vessel or the cargo from any other imminent peril; the expenses and wages for getting the vessel afloat; and the salvage payable for extraordinary services to avoid loss or capture in the aforesaid cases;
(i) generally, any damage voluntarily sustained in cases of danger, and all expenses incurred, for the common benefit and preservation of the vessel and of the goods, from the time of loading and sailing, up to the time of the return and discharge.

Things which contribute towards general average.

How price of goods is fixed.

Particular averages.

445. The goods, the vessel according to her condition at the time of her arrival, and the clear amount of the freight after deducting the wages of the seamen, their maintenance, and other expenses of the voyage, shall each and all contribute in pr oportion to their respective values or amounts, towards general average.

446. The price of the goods shall be fixed according to their value at the place of discharge.

447. The following are particular averages:

(a) any damage sustained by the goods through inherent defects, or by reason of stress of weather, capture, shipwreck, or stranding;
(b) expenses incurred to save the goods;
(c) the loss of cables, anchors, sails, masts, or cordage, occasioned by stress of weather or other marine accident; the expenses of putting into any place owing to the fortuitous loss of the said things, or to the necessity of victualling the vessel, or for the purpose of repairing her in case of leakage;
(d) the wages and maintenance of the seamen during the refitting of the vessel for any of the causes mentioned in this article;
(e) the wages and maintenance of seamen during quarantine; and
(f) generally, all expenses incurred for and any damage sustained by the vessel alone, or the goods alone, from the time of the loading and sailing to that of the return and discharge, whenever such expenses and damage were not incurred or caused voluntarily, and for the common safety of the vessel and cargo.

448. Particular averages are borne and paid by the owner of the thing which has sustained the damage or occasioned the expense.

449. (1) Any damage sustained by the goods by reason of the master having neglected to secure the hatches, to moor the vessel, or to provide good cables , or by reas on of any other accident occasioned by the neglect of the master or the crew, are likewise particular averages to be borne by the owner of such goods; but for any such damage the owner has a remedy against the master, the vessel and the freight.

(2) Any damage which the owners of the vessel sustain through an unnecessary and unreasonably long stay in port shall be made good by the master.

By whom particular averages are borne.

Damage to goods occasioned by negligence of master or crew.

450. Pilotage and towage dues in order to put into or sail from any port or place, the expenses relating to sea-protests, tonnage and other navigation dues, are not averages but simple charges on the vessel, saving the provisions of paragraph (g) of article 444.
451. No action for general average can be brought if such average does not exceed one per centum of the joint value of the ve ssel and cargo, a n d no action for particula r average ca n be brought if such aver age does not exceed one per cen tum of the value of the thing damaged.

Expenses for pilotage, towage, etc., are not averages.

When action for average loss is not maintainable.

Sub-title II

OF JETTISON AND AVERAGE CONTRIBUTION

452. (1) If by reason of stress of weather or the pursuit of an enemy, the master deems it his duty, for the safety of the vessel, to throw anything overboard, or to cut away the masts, or to abandon the anchors, he is bound to consult the parties interested who may be on board the vessel and the principal members of the crew.

(2) If there is a difference of opinion, the opinion of the master shall prevail.

Jettison.

453. The things least useful, the heaviest, and the least valuable, shall be the first to be thrown overboard.

454. (1) The master shall, as soon as possible, draw up a statement of the deliberation as to the jettison.

(2) The statement shall indicate the grounds on which it was decided to make the jettison, and shall mention the goods thrown overboard or damaged; it shall i nclude the names of those who agreed and of those who disagreed with the master; and it shall be copied in the log-book.

Things to be thrown first.

Deliberation to be reduced into writing.

455. The statement of the losses and damage shall be made at the place of discharge of the vessel.

Statement of losses and damage.

How things thrown overboard are valued.

Adjustment of average loss.

Where quality of goods is not truly stated.

456. Goods thrown overboard shall be valued according to the market price at the place of discharge; their nature and quality shall be proved chiefly by the bills of lading and invoices, if any.

457. The apportionment of the losses and damages shall be made on the goods thrown overboard and on those saved, on the vessel and on the freight, in proportion to their value at the place of discharge.

458. (1) In cases where the quality of the goods has not been truly described in the bill of lading, if the goods are found to be of grea ter value than that stated, th ey shall, if saved, contribute accord ing to their valuation; but, if lost, they shall be paid fo r according to the quality as stated in the bill of lading.

(2) If the goods are found to be of an inferior quality to that stated in the bill of lading, they shall, if saved, contribute on the basis of the quality shown in the bill of lading, but, if jettisoned or damaged, they shall be paid for according to their value.

Ammunition, victuals, etc., do not contribute to general average.

459. (1) Ammunition, victuals, the effects of the crew, and the wearing apparel of th e pa ssengers do no t contri bute to general average.

(2) The value of such things, however, if they are jettisoned, shall be paid for by a contribution on all the other things.

Goods for which there is no bill of lading.

460. Goods for which there is no bill of lading, nor a declaration of the master, are not paid for, if jettisoned, but shall contribute, if saved.

Deck-cargo. 461. (1) Goods carried on deck shall contribute, if saved; if th ey are j e t tiso n ed, or damaged by th e jet tiso n , n o cl aim f o r contribution can be made by the owner thereof, who shall, however, have a right of recourse against the master, where the latter is liable according to law.

(2) The provisions of this article shall not apply in the case of voyages between Malta and Sicily, or between Malta and Tripoli or Tunis, or in the case of goods which it is customary to carry on deck.

Where jettison does not save vessel.

Where the vessel is saved by the jettison, but is afterwards lost.

Damage sustained after the jettison.

462. If the jettison does not save the vessel, there shall be no contribution, and the goods which have not been jettisoned, and which have been saved, shall not be liable to pay for the things jettisoned, or to make good the damage sustained by other goods.

463. If the jettison saves the vessel and if, in prosecuting her vo yage, sh e sh ould be aft e rward s lost, the effects sa ved shall contribute towards the jettison, according to their value in the cond it ion in which th ey ma y be found, after dedu cting salv age expenses.

464. (1) Goods jettisoned do not, in any case, contribute to the payment for any damage which the goods saved sustain after the jettison.

(2) The cargo does not contribute to the payment of the vessel w h ich is lost or h a s beco me unseaworthy, except in the cases
mentioned in article 444.

465. Where the vessel has been cut open to extract the goods, such goods shall contribute to the repair of the damage caused to the vessel.

466. Where the vessel is lost with the remainder of the cargo, there shall be no claim for contribution against goods put into boats to lighten the vessel, even though such goods arrive in safety.

467. Where, after the apportionment of the contribution, the goods jettisoned are recovered by their owners, such owners must return to the master and to the interested parties what they received ou t of t h e con t ri bu ti on , ded u c t i n g t h e dam a g e s c a used b y th e jettison, and the expenses of recovering the goods.

468. The owner of the goods can in no case be called upon to contribute to general average beyond the value of the goods at the time of their arrival.

Goods contribute to repair of vessel damaged for saving them.

No contribution by goods put into boats.

Where goods jettisoned are recovered.

Owner of goods not to contribute beyond value thereof.

Title V

OF PRIVILEGED DEBTS ON SHIPS AND OTHER SEA-GOING

VESSELS

Arti cles 46 9 t o 47 6, b o th inclusive, re pea l ed b y : XXXVII.

1988.41.

PART III

OF BANKRUPTCY

Title I

OF THE DECLARATION OF BANKRUPTCY

477. Every trader who suspends payment of his debts is in a state of bankruptcy.

478. (1) The trader or his lawful representative can, on the suspension of payments, make a declaration thereof in the Civil Court, First Hall.

(2) In case of the bankruptcy of a partnership en nom collectif the declaration must contain the name and the place of residence of each of the partners jointly and severally liable.

Definition.

Declaration in court. Amended by:

XXIV.1995.362.

479. The declaration of the trader must contain his name and surname, and must state the nature of the business carried on by him, the name, s u rname and othe r particulars of each of his creditors together with their place of residence, and the quality and nature of the debts.

Contents of declaration.

Production of books. Amended by:

XXIV.1995.362.

Summoning of creditors. Amended by: XXIV.1995.362.

Declaration of bankruptcy on demand of creditor. Amended by: XIII.1983.5; XXIV.1995.362; L.N. 407 of 2007.

Declaration may not be sought by son against father or vice versa, etc.

When declaration may be sought after death of trader.

Creditor demanding adjudication of bankruptcy to give security.

480. On making the declaration mentioned in the foregoing articles, the trader shall, at the same time, file in the Civil Court, First Hall, all his commercial books and papers.

481. Where a trader has presented any such declaration, the registrar shall, by letter, call upon the creditors mentioned in the declaration to appear before the Civil Court, First Hall, there to show cause why their debtor should not be declared to be in a state of bankruptcy, and in order that curators may be appointed. The registrar shall cause the declaration to be published, by means of a notice containing an abstract of the sa me, i n th e Gov e rnm e n t Gazette and in one or more newspapers.

482. (1) It shall also be lawful for any creditor, whether the debt owing to him is a commercial debt or otherwise, and even though such debt ha s not yet fallen due, to proc eed summarily before the Civil Court, First Hall, against the debtor or his lawful representative, demanding a declaration that such debtor is in a state of bankruptcy.

(2) A declaration of bankruptcy may not be sought by a son against his father, or by a father against his son, or by one spouse against the other.
(3) The bankruptcy of a trader can be declared after his death, if prior to his death he had suspended payment; in such case the declaration of bankruptcy cannot be demanded by the creditors except within three months of the death of the debtor.
(4) In the case of a demand for a declaration of bankruptcy as p r ov id ed in t h is ar ticle, the party ma king the de ma nd shall, simultaneously with the demand, give security in an amount not exceeding four hundred and sixty-five euro and eighty-seven cents (465.87), by way of penalty, in favour of the party against whom the demand is made, for the due prosecution of the case without delay and the substantiation of his claim; in default whereof, it shall be lawful for the court to order the amount of the security to be paid, in whole or in part, to the party in whose favour such security has been given:
Provided that such payment shall not operate as a bar to an action against the plaintiff for damages and interest arising from such proceedings.

Where no funds exist in estate of bankrupt.

Reimbursement of expenses incurred by creditor.

483. (1) If, where no funds exist in the estate of the bankrupt, the creditor on whose demand the bankruptcy has been declared, neglects to sue out, at his own expense, such acts and proceedings as are necessary in order to arrive at the ranking of the creditors, it sha ll be l awful fo r an y oth er credi to r, or even fo r the bank ru pt himself, to sue out such acts or proceedings.

(2) All necessary expenses incurred in bankruptcy proceedings shall be repaid to the creditor disbursing them, as a first charge out of the first moneys received on account of the estate in preference to any other debt.

484. (1) Precautionary and conservatory acts against the property or person of the debtor can be sued out by the creditors by the same process as the law prescribes for the issue of any act or warrant in security of any other debt, having regard to the nature and quality of the debt.

(2) But a bankrupt who has been arrested at the suit of any credit or or who has withdr awn to his house from fear of being arrested, can apply to the Civil Court, First Hall, for his temporary release for a period of six months which may, at the discretion of the court, be extended for just cause. The court shall decide the matter upon a sworn applicatio n against t h e curato rs and t h e creditors at who s e suit the warran t of arrest was issued. Such temporary exemption of the bankrupt from personal molestation shall have effect even as regards the creditors and other interested parties who have not been summoned.
(3) Such temporary release shall be granted where it is not shown that there ha s been de ceit or fraud on t h e part o f t h e bankrup t. Bu t it shall be open t o the credi t ors, by sworn application, to insist on the arrest of the bankrupt on proof of any deceitful or fraudulent act on his part. The court may also, of its ow n motion, order, during the course of th e proceedi ngs, the temporary arrest of the bankrupt , if t h ere be against him any grounded presumption of deceit or fraud.

Precautionary acts. Amended by: XXIV.1995.362; XXII. 2005.79;

L.N. 181 of 2006.

Temporary release of bankrupt.

485. (1) Every act transferring property, whether corporeal or incorporeal, including any renunciation of any succession whatsoever or of an acquired prescription, and every obligation incurred or other act made by the bankrupt under a gratuitous title for the purpose of defrauding his creditors, shall be null and void as regards the body of creditors, of whatever kind they may be, even though the parties interested be in good faith.

(2) Every act of the same kind and every obligation, act or payment made or incurred under an onerous title can be annulled if there be fraud also on the part of the party interested.
(3) Any such acquisition, obligation, act or payment shall be deemed to be fraudulent as regard s th e p art y i nte rested , if i t i s proved that such party knew of the bankruptcy or of the existence of circumstances giving rise to a declaration of bankruptcy.

Acts in fraud of creditors are void or voidable.

486. (1) From the date of the declaration of bankruptcy made by the trader himself or, as the case may be, from the date of the judg ment declari ng t h e bank rup t cy, the bankrupt is ipso jure di spos sessed of the administration of all his property, wh ether corporeal or incorporeal, and whether relating to his business or not.
(2) Saving any provision to the contrary of the donors or testato r s, everyt hin g t h at devol ves o n t h e d e bto r after th e bankruptcy shall, when and as the same so devolves, fall under such dispossessi on, subject, ho wever, to the char ges on the property so devolved and to a proportionate allowance for daily maintenance.

Bankrupt is dispossessed of administration of property.

bankrupt not yet due, become exigible on declaration of bankruptcy.

privileged, secured by pledge, or hypothecary, become exigible upon the declaration of bankruptcy made by the trader himself or upon the judgment of the court declaring the bankruptcy.

Appointment of curators.

Title II

OF THE RIGHTS AND DUTIES OF THE CURATOR OF A BANKRUPT

488. The court shall in and by the judgment declaring the bankrup tcy, w h ether the pro c eed i ngs were taken upo n th e declaration of th e ba nkrup t him self or upon the demand of the creditors, appoint one or more curators to exercise the functions assigned to them under this Part.

Qualifications. 489. The curators to be appointed by the court must be persons whom the court deems fit faithfully to discharge the duties of their office, even though they be creditors or relations of the bankrupt.

Publication of abstract of judgement in Gazette.

Removal of curators.

Property to vest in curators.

490. The curators shall cause a notice containing an abstract of th e ju dg men t declari ng th e ban k ru pt cy t o be p u b lish e d i n th e Government Gazette and in one or more newspapers.

491. The court may, at any stage of the proceedings, either of its own motion or upon the demand of one or more creditors or of the bankrupt, remove the curators. No appeal shall lie against such decision. In case of removal, new curators shall be appointed.

492. (1) The curators shall not exercise any of their functions until they have taken the oath that they will truly and faithfully discharge the duties assigned to them.

(2) Upon the taking of such oath, the possession of all property and all rights of any kind whatsoever belonging to the bankrupt, other than the right of nomination to any vaca nt eccle s ias t ical benefice, as well as all rights and property which he may acquire until his discharge, shall vest in the curators.
(3) The curators shall be deemed to be officers of the court, and as such they are subject to the orders of the same.

Seizure of property. Amended by: XXIV.1995.362.

Books open to inspection.

Collection of moneys.

493. If the property of the bankrupt, including his books and papers, have not already been secured upon the demand of some creditor, the curators, as soon as they have been sworn, shall apply to the judge of the Civil Court, First Hall, for the issue of a warrant of seizure. In the case of b a nk ru pt cy of a partn e rsh i p en no m collectif, the warrant of seizure shall be executed not only at the principal offices of the partnership, but also at the residence of each partner.

494. The books and papers of the bankrupt shall be open to inspection by all the parties interested, and, by permission of the judge, they may be delivered, wholly or in part, to the curators.

495. The curators shall receive all sums due to the bankrupt. The receipts to be given by the curators shall be vis é d by the registrar who shall keep an abstract thereof; otherwise they shall

not have the effect of discharging the debtors. The curators shall take possession of every other thing which is still in the possession of the bankrupt or belongs to him.

496. The curators shall sell, by means of a licensed auctioneer, such goods and merchandise as are perishable, after stating their reasons to the judge and obtaining his authority.

497. Non-perishable merchandise cannot be sold by the curato rs, b efo re th e proc eedi ngs rel ati ng to t he co m posi ti on or arrangemen t pro v ided f o r in th e fo llow i ng arti cles have taken place, except in pursuance of a judgment of the court upon a sworn application issued against the parties interested.

498. (1) It shall be lawful for the curators, with the authority of the judge, to continue to carry on the business of the bankrupt, where they are of opinion that the continuation of such business will afford a means of re-establishing the bankrupt’s affairs, or of increasing his assets for the benefit of the creditors.

(2) The judge shall, when granting such authority, give such directions as he considers most advantageous in the interest of the bankrupt and of his creditors:
Provided that if any creditor shall at any time make opposition to such authority, it shall be in the power of the court, on just cause being shown, to withdraw the authority, after hearing the curators and the bankrupt.

Sale of perishables.

Sale of non- perishables. Amended by: XXII. 2005.79.

Curators may continue business.

499. The curators can, at the discretion of the judge, keep such sum as the judge shall determ ine i n order to m e et necessary expenses. All other moneys shall be paid by the curators into the registry of the court.

500. From the time the curators enter upon the duties of their office, all civil actions commenced before the bankruptcy against the person and property of the bankrupt can only be prosecuted against the curators. After the bankruptcy, no action can be brought except against the curators.

501. (1) The curators, on entering upon the duties of their office, must take every necessary step for the preservation of the rights of the bankrupt as against his debtors; they shall also cause to be registered in the Public Registry any hypothec affecting the property of the debtors of the bankrupt if he has failed to do so.

(2) It shall be the duty of the curators to sue for the payment of the debts, of whatsoever kind, due to the bankrupt, for the benefit of the creditors: But it shall not be lawful for the curators to make any compromise or refer any dispute to arbitration, without the consent in writing of the majority in value of the creditors of the bankrupt, and the authority of the judge.

Sum of money which curators may keep.

Action against curators.

Duties of curators.

502. (1) Within the period of one month from the judgment declaring the bankruptcy, the curators shall, notwithstanding any appeal from such judgment, make up an inventory of the bankrupt’s property.

(2) Such period may for just cause be enlarged.

Making up of inventory.

assist in the making up of the inventory.

Contents of inventory.

Power of court. Amended by: XXIV.1995.362.

503. The inventory shall contain a true list together with a description and valuation of all the bankrupt’s property, movable and immovable, a statement of the debts owing to or due by the bankrupt, a statement of his profits and losses, and a statement of the expenses.

504. It shall be in the power of the Civil Court, First Hall, either of its own motion or on the demand of the curators or of one o r mo re of t he cre dit or s, to co mpel the bankrupt and any other p e rson t o g i ve o n oat h all such i n fo rm at ion as it may deem necessary or useful in the interest of the body of creditors or for the making up of the inventory.

Recovery of bills of exchange, etc.

Title III

OF THE RIGHTS OF RECOVERY

505. It shall be lawful, in case of bankruptcy, to recover all bills o f ex cha ng e an d o th er do cu me nt s o f ti t le yet un pai d wh ich are found in kind in the possession of the bankrupt at the time of the bankruptcy, whenever such bills or documents of title shall have been endorsed by the owner for collection for his own account.

Recovery of goods. 506. (1) It shall likewise be lawful to recover goods delivered to the bankrupt by way of deposit or to be sold on account of the owner, so long as the same exist in kind, wholly or in part.

(2) It shall also be lawful to recover the price or part of the price of such goods, which has not been paid in cash or otherwise, or set off in account current between the bankrupt and the buyer.

Recovery of goods sold to bankrupt.

507. (1) Goods sold to the bankrupt or forwarded for his account may be recovered, so long as they are in his possession.

(2) Nevertheless, such right of recovery may not be maintained in cases where, before their arrival, the goods have been, without fraud, sol d on in voices o r bil l s o f lading si gned by t h e party forwarding the goods.
(3) The party recovering the goods shall be bound to return to the estate the sums received by him on account, and all advances m a de i n respect of freight, commission, insuran ce or o t her ex pen s es, and mu st pay w h at remai n s du e i n respect of such charges.

Goods not yet delivered to bankrupt.

Curators’ power to withdraw goods.

508. It shall be lawful for the seller to retain the goods sold by him to the bankrupt, but not yet delivered to the bankrupt or not yet forwarded to him or to a third party on his behalf.

509. In the cases mentioned in the last two preceding articles, the curators shall have power, with the authority of the judge, to tak e th e go ods on p a yin g to t h e seller the price agreed u pon between him and the bankrupt.

Title IV

OF THE PROOF OF DEBTS AGAINST THE BANKRUPT’S ESTATE

510. (1) After making up the inventory, the curators shall, within three days, make a list of all the creditors.

(2) Such list shall be filed in the registry, and the registrar shall, u pon an order of t h e judge, summon a meeti ng o f the creditors by means of a notice to be published in the Government Gazette and in one or more newspapers.
(3) The meeting of the creditors shall take place in the presence of the judge on the day and at the place fixed in the notice.

List of creditors.

Meeting of creditors.

511. Every creditor shall, at such meeting, or on another subsequent day, as the judge shall direct, present an application for admission of his debt, and shall produce and specify the documents in supp ort of th e sam e . A procès-verbal sh all be drawn up containing the pleas set up by the curators or by the creditors.

512. (1) Any person, although his debt has not been proved and admitted, may, on summarily showing that he is interested, assist in the examination of the claims of the other creditors and set up pleas in regard thereto.

(2) In cases where one of the curators opposes or claims any right in his own name, the interest of the body of creditors shall be defended by the other curator or curators not being objectors or claimants; but if everyone of the curators shall, in his own name, opp ose or clai m so me rig ht, t he b ody of cred ito rs shal l, in th is instance and for this purpose only, be represented by some other person whom the judge shall, by decree, appoint, without any other formality.

Application of creditor.

Person interested can assist in the examination of claims.

513. If any person wilfully makes any false claim or claims a larger sum than that actually due to him, he shall be liable to be sued before the Civil Court, First Hall, for the payment of twice the amoun t falsely claimed, for t h e ben e fit of th e estat e o f the bankrupt.

514. Upon the presentation of the creditors’ applications, the judge shall proceed to the examination of the claims. The decree of the judge relating to the examination of the claims shall contain a reference to the documents substantiating the claims, and shall state the place of residence of the creditors and the amount admitted.

515. (1) As soon as the decree mentioned in the last preceding article is prepared, it s h all be depos i ted in the registry and published by means of a notice in the Government Gazette and in one o r m ore newsp ap ers. Not ice of such depo si t shall be given individually to the creditors who made application for the proof of their claims.

(2) If such decree be not impeached within the period of eight days after notice of the deposit, it shall ipso jure be deemed to be accepted.
(3) The decree may be impeached by sworn application before

False claim. Amended by: XXIV.1995.362.

Examination of claims.

Proceedings after examination of claims.

Amended by: XXIV.1995.362;

XXII. 2005.79.

the Civil Court, First Hall.

List of creditors failing to appear.

516. Upon the deposit of such decree in the registry, the cu rato rs shall d r aw u p an d f ile i n the same r e g i str y a n o t e containing the names of the creditors who failed to appear.

Meeting of creditors after decree relating to examination of claims.

Title V

OF THE COMPOSITION OR SCHEME OF ARRANGEMENT

517. (1) Within ten days after the deposit of the decree relating to the examination of the claims, the registrar shall call a meeting of the creditors whose claims have been admitted.

(2) Such meeting shall be held on the day and at the time fixed by the judge who shall preside at such meeting.

Bankrupt to be present.

518. (1) The bankrupt shall also be summoned to such meeting. He cannot attend by proxy except for reasons approved by the judge.

(2) The judge shall examine the instruments of proxy of those w ho ap pear on b e half of absent credi t ors. H e shall cause the cura tors to give, in his pre sence, an account of the state of the bankruptcy and of everything that has taken place.
(3) The bankrupt may, in all cases, be heard.

Terms of composition.

519. At such meeting, it shall be considered whether the case admits of a composition. The bankrupt shall propose the terms of the composition, and the creditors shall have at least eight days to consider the proposal.

Taking of votes. 520. At the expiration of the eight days, the creditors shall meet again in the presence of the judge, and their votes shall be taken.

Composition to be agreed upon by majority in number and three-fourths

in value of creditors.

521. (1) The registrar shall draw up a procès verbal of the proceedings and of the resolutions passed at such meetings.
(2) Every creditor can give his vote, and the final agreement shall not be deemed to be approved except by the concurrence of a majority in number and three-fourths in value of the creditors who have proved.
(3) Creditors having a hypothec registered in the Public Registry or holding a pledge cannot vote on the resolution relating to the composition.

Where majority of creditors agreeing to composition do not represent three- fourths of sums admitted.

522. (1) If the majority of the creditors present agree to the composition, but their claims do not represent three-fourths of the sums admitted to be due by the bankrupt, the deliberation shall be adjourned for another eight days, as a last adjournment.

(2) Tutors or curators of creditors cannot consent to the composition without the authority of the judge of the Civil Court, Second Hall, but the intervention of the judge shall not be requisite at the execution of the composition.
(3) If the composition is not agreed upon, it shall be lawful for a n y of the c r e d itors, at a n y other stage of the proceedings, to propose a fresh scheme of arrangement, and in such case, the judge shall grant a sufficient time for deliberating.

New scheme of arrangement can be proposed.

523. (1) If all the creditors agree to the composition, its approval by the judge shall be sufficient to make it valid. But if the co mpo s iti on i s agr e ed to o n l y by th ree-fo urt h s in val u e o f t h e creditors, the curators or the bankrupt shall, within the period of eight days, apply to the court for the approval thereof, by sworn ap plicatio n against the credi t ors op posing the com positio n or failing to attend the meeting prescribed in article 517.

(2) In the absence of proof by the defendants of any deceit or gross misconduct, the court shall approve the composition.
(3) A composition duly approved shall be binding on all the creditors.

Composition to be approved by judge. Amended by:

XXII. 2005.79.

524. (1) On the composition being approved, the bankrupt shall be deemed to be ipso jure rehabilitated.
(2) The composition when approved shall have the effect of restoring to the bankrupt the administration of his property, under the conditions, if any, embodied in the instrument of composition.
(3) Any stipulation contained in the instrument of composition, n o t being co ntrary to law, sh all be val i d. The instrument of composition may provide for the selection of one or more persons f o r t h e pur pose of watchin g o v er th e carryi ng out of the composition, of assisting at the sale of property if any such sale t a kes place, and o f secu ring th e di stri bution of the proceeds amongst the several creditors.
(4) A stipulation that the bankrupt shall have no power to do any act, whether of administration or of alienation, without the consent of one or more persons appointed by the creditors, shall be a valid stipulation, and shall have effect even against third parties who have contracted in good faith with the bankrupt alone.

Rehabilitation. Effects.

Stipulations which may be validly made in instrument of composition.

525. (1) If the composition provides for the abatement of a part of the debt, the bankrupt shall be discharged, even as to his future property, from the part abated:

Provided that such abatement a nd any time grante d to the b a n k rupt for p a y m ent shal l no t op erate in fav our of any o t her person, being a co-debtor or surety jointly and severally liable with the bankrupt.
(2) The default in making payment according to the terms of the composition, shall be considered as a fresh bankruptcy, if the debtor continues to carry on trade.

Where composition provides for the abatement of part of debt.

Effect of breach of composition arrangement.

526. Notwithstanding the composition, the right of action of the creditors for the whole amount of their debts against the co-debtors or sureti es jo intly and severa lly bound with th e bank rupt shall remain unimpaired, even though such creditors may have assented to the composition.

Right of action of creditors against co-debtors.

Rendering of accounts by curators.

527. (1) The curators shall, within four days after the approval o f th e com p osit io n, r end er th eir final acc ount; and they can be compelled to render such account at the instance of the bankrupt or of any other interested party.

(2) The curators shall then, within the period of eight days, deliver to the bankrupt or to the person appointed under the composition all the bankrupt’s property, books, papers and other effects.
(3) Upon such delivery, the functions of the curators shall cease.

If composition is not approved.

Property to be retained by bankrupt.

Redemption of pledges.

Title VI

OF THE RANKING OF CREDITORS

528. If the composition is not approved, the curators shall, withi n the period of one mont h, proceed to the sale of th e bankrupt’s property, under the authority of the court.

529. In all cases, the bankrupt and his family shall be allowed, with the approval of the judge, to retain the wearing apparel and other movable effects necessary for their personal use, regard being had to the condition and former circumstances of the bankrupt.

530. (1) The curators are authorized to redeem pledges, for the ben e fit of the est a te of th e b a nkru p t, upo n payment of th e respective debts.

(2) If the pledge is not redeemed by the curators, and is sold by the cr editor for a price exceeding the debt, the surplus shall be collected by the curators; if the price realized is less than the debt, the creditor who had the pledge may prove and compete for the difference.

Ranking of creditors.

531. (1) Following the deposit of the decree relating to the examination of the claims, the judge shall proceed to the ranking of the creditors.

(2) Such ranking shall set forth the order in which the creditors shall be paid from the proceeds of the property so ld, from the revenue of property attached by a garnishee order, and from any other funds which may have remained, or may at any time come in the possession of the curators, or otherwise exist in favour of the estate of the bankrupt, even though such moneys may not have been deposited in the Registry of the Court.

Presentation of application by creditors.

Consideration of claims.

532. For the purposes of such ranking, the creditors shall, by l etter of the registrar, be called upo n t o presen t i n th e regi stry, w ith in fi ft een d a ys, th e requi site dem a nd, b y mean s of an app licati on, to get h er with su ch other documents as may b e necessary for the ranking.

533. After the presentation of the applications mentioned in the last preceding article, the registrar shall, by letter, sum mon the creditors, the curators and the bankrupt to appear before the judge

on the day appointed for the purpose, in order that their respective claims may be dealt with.

534. (1) Where there is no presumption of the bankruptcy being fraudulent, the bankrupt shall be entitled to an allowance out of his own property.

(2) The curators shall propose the amount of the allowance, and the jud ge shall fix the same having regard to the needs and the number of the bankrupt’s family, and to the extent of the loss which will thereby be occasioned to his creditors.

Allowance to bankrupt for maintenance.

535. Creditors having pledges, privileges or hypothecs shall be ranked according to the law for the time being in force.

536. The creditors who fail to appear after the intimation pr escribed in article 532 shall not be taken into account in the ranking of the creditors: but none of the creditors appearing after the said intimation shall receive payment of his claim unless he gives sufficient security, to the satisfaction of the curators, that he will contribute ratably in favour of those creditors who shall have failed to appear or are absent, in the event of their appearing within the period of one year from the day on which such security has been given.

537. In all cases of bankruptcy, no interest on the sums due by the bankrupt shall be allowed from the date of the declaration of bankruptcy made by the trader himself or as the case may be from the date of the judgment declaring the bankruptcy.

Privileged creditors.

Creditors not appearing after intimation.

No interest due from date of bankruptcy.

Title VII

OF THE REHABILITATION AND DISCHARGE

538. (1) When the ranking of creditors has been definitely settled, the registrar shall, by letter, call upon the creditors so r a n k ed to appear on th e day ap po int e d b y the j u d g e fo r t h e examination of the accounts of the curators, and for considering whether the bankrupt ought to be rehabilitated to trade.

(2) The rehabilitation shall be granted by a decree of the judge, provided there be no proof of any deceit or fraud on the part of the bankrupt.
(3) The rehabilitation has the effect of discharging the bankrupt, with respect both to his person and to his after-acquired pro p erty, fro m all debt s that cou l d at an y t i m e previo us to th e declaration of bankruptcy have been claimed against him.

Rehabilitation and discharge.

539. (1) The benefits granted by law in favour of bankrupts shall not apply in the case of fraudulent bankruptcy.

(2) A bankrupt shall be deemed to be a fraudulent bankrupt in each of the cases following:
(a) if he makes an untrue statement in respect of the debts owing to or from him, or in respect of his insolvency;

Fraudulent bankruptcy.

(b) if he has simulated any expenses or losses or if he fails to give a satisfactory explanation of the manner in which his receipts have been disposed of;
(c) if he has concealed or removed any sum of money, or any debt due to him, goods, merchandise or other movable effects;
(d) if he has made fictitious sales, transactions or donations;
(e) if he has simulated collusive debts between himself and fictitious creditors, by simulated writings or by declaring himself debtor, without consideration or cause, in any public or private act;
(f) if he has concealed or destroyed his books, documents or other papers relating to his accounts.

Cases where trader may be adjudged a fraudulent bankrupt.

540. A bankrupt may in the cases following be adjudged a fraudulent bankrupt, unless he sufficiently proves that he had no intent to defraud -

(a) if he has not kept books or if his books do not show the true state of his assets and liabilities;
(b) if, on being lawfully summoned for examination, he fails to attend;
(c) if he has not aided in the making up of the inventory.
Part IV

OF PRESCRIPTION AND INADMISSIBILITY OF ACTION IN

CERTAIN COMMERCIAL MATTERS, OF THE JURISDICTION OF THE CIVIL COURT, FIRST HALL, AND OF COMMERCIAL FEES

Times to be peremptory.

Actions barred by the lapse of five years.

Actions arising from bottomry contracts, etc.

Title I

OF PRESCRIPTION AND INADMISSIBILITY OF ACTION IN CERTAIN COMMERCIAL MATTERS

541. All times fixed by any express provision of this Code for the exercis e of any action or ri ght of recourse arising from commercial acts, are peremptory; and the benefit of the restitutio in integrum by reason of any title, cause or privilege whatsoever shall not apply.

542. Saving the provisions contained in articles 238, 239 and

263, actions arising from bills of exchange or from promissory notes shall be barred by prescription by the lapse of five years from the day of their maturity, and actions arising from drafts or cheques
on bankers or cashiers shall be barred by prescription by the lapse of five years from their date.

543. Actions arising from contracts of loan on bottomry or from contracts of insurance shall be barred by prescription by the lapse of five years from the day on which the sam e could ha ve been

exercised.

544. The following actions shall be barred by prescription by the lapse of the times stated hereunder:

(a) actions for payment of freight, by the lapse of one year from the completion of the voyage;
(b) actions for the payment of victuals supplied to seamen by order of the master, by the lapse of one year from the day of such supply;
(c) actions for payment of timber and other things necessary for the construction, equipment and provisions of a ship, by the lapse of two years from the date on which such timber or other things have been supplied;
(d) actions for payment of wages of workmen and for work done, by the lapse of one year from the completion of their work or the delivery of the work;
(e) actions for the delivery of goods, by the lapse of one year from the arrival of the vessel.

Actions for freight, etc.

545. No action shall lie -

(a) against the master and the insurers for damage occasioned to the goods, if such goods have been received without protest, and the damage was visible;
(b) against a freighter for average, if the master has delivered the goods and received the freight without making a protest;
(c) for damages occasioned by collision of vessels when the same happens in a place in which the master could institute proceedings, unless the master made his protest.

Actions that are inadmissible.

546. Save where the law expressly provides otherwise, the prescriptions established in this Code shall run against minors and persons interdicted, saving their right of relief against the tutor or curator.

Prescription to run against minors, etc.

Title II

OF THE JURISDITION OF THE CIVIL COURT, FIRST HALL

547. Commercial jurisdiction shall be exercised by the Civil Court, First Hall, in accordance with the provisions contained in the Code of Organization and Civil Procedure.
548. The following controversies are of a commercial nature: (a) all controversies relating to obligations and contracts
between traders, unless it appears from the act that the transaction is of a purely civil nature;
(b) all controversies relating to acts of trade between persons whomsoever.

Commercial jurisdiction. Amended by: XXIV.1995.362. Cap.12.

Controversies of a commercial nature.

Other matters cognizable by Civil Court, First Hall. Amended by: XXIV.1995.362.

549. The Civil Court, First Hall, shall also take cognizance - (a) of actions against agents or other persons
commissioned by merchants, or their subordinates in
regard only to transactions carried out in the ordinary
course of the business of their principal; and of actions by the former against the principal;
(b) of all matters relating to bankruptcy in accordance with the provisions contained in this Code.

Commercial fees. Substituted by: XXIII. 2009.21.

Power of Minister responsible for justice to establish fees.

Amended by: L.N. 4 of 1963; XXXI.1966. XIII. 2008.2.

Title III

OF COMMERCIAL FEES

550. It shall be possible for commercial fees, different from t hose est abli shed in the Sch edul e hereto , to be ag reed bet ween parti e s. The service provider shal l inform his client of the applicable fee or the basis on which the fee is to be determined before the service is provided.

551. The Minister responsible for justice may, by notice in the Gove rnment Gazette, after hearing the Chamber of Commerce, Enterprise and Industry, amend or make additions to the Schedule of fees referred to in the last preceding article.

GENERAL PROVISION

Contrary customs to be inoperative.

552. Any law or custom contrary to or inconsistent with the provisions of this Code shall have no effect.

SCHEDULE Schedules con- tained in s.1 of
[Articles 550-551]
PART I
(Article 70(3))

Ord.II. of 1898, consolidated. Amended by: XIII.1983.4;

IX. 2003.4;

L.N. 407 of 2007.

SECONDARY ACTIVITIES OF COMMERCIAL AGENTS
1. The activities of a person as a commercial agent are secondary where it may reasonably be taken that the primary purpose of the arrangement with his principal is other than as set out in paragraph 2 below.
2. An arrangement falls within this paragraph if -
(a) the business of the principal is the sale, or as the case may be purchase, of goods or services of a particular kind; and
(b) the goods or services concerned are such that -
(i) transactions are normally individually negotiated and concluded on a commercial basis, and
(ii) procuring a transaction on one occasion is likely to lead to further transactions in those goods or services with that customer on future occasions, or to transactions in those goods or services with other customers in the same geographical area or among the same group of customers, and that accordingly it is in the commercial interests of the principal in developing the market in those goods or services to appoint a representative to such customers with a view to the representative devoting effort, skill and expenditure from his own resources to that end.
3. The following are indications that an arrangement falls within paragraph 2 above, and the absence of any of them is indication to the contrary -
(a) the principal is the manufacturer, importer or distributor of the goods; (b) the goods are specifically identified with the principal in the market in
question rather than, or to a greater extent than, with any other person;
(c) the agent devotes substantially the whole of his time to representative activities (whether for one principal or for a number of principals whose interests are not conflicting);
(d) the goods are not normally available in the market in question other than by means of the agent;
(e) the arrangement is described as one of commercial agency.
4. The following are indications that an arrangement does not fall within paragraph 2 above -
(a) promotional material is supplied direct to potential customers;
(b) persons are granted agencies without reference to existing agents in a particular area or in relation to a particular group;
(c) customers normally select the goods for themselves and merely place their orders through the agent.
5. The activities of the following categories of persons are presumed, unless
the contrary is established, not to fall within paragraph 2 above -
- Mail order catalogue agents for consumer goods;
- Consumer credit agents.
PART II

COMMISSIONS AND FEES

Commissions

On the purchase and sale of goods
On the purchase of goods with the principal’s funds in hand .......... 2% On the purchase of goods and on the drawing for the value thereof 21/8% On the sale of goods ..................................................................... 2% On attempted sale of goods -
if the value be above €1,164,69 ........................................... ¼%
if the value be €1,164,69 or less .......................................... ½% On the purchase and sale of sailing - or steam-ships (including
brokerage), (from each party) ....................................................... 1¼%

Banking Transactions

On drawing .................................................................................. 1/8 to ¼% On remitting ................................................................................. 1/8%
On accepting ................................................................................ 1/8%
On negotiating .............................................................................. 1/8 to ¼% On endorsement of bills of exchange ............................................ 1/8%
N.B.- If the drawing and remitting, or th e acceptin g and
negotiating refer to the same transaction, the fee is only ................ ¼%
On the purchase or sale of public funds -
for funds quoted at above 75% of their nominal value, -
on the nominal value ............................................................ 1/8%
for funds quoted at below 75% of their nominal value, -
on the nominal value ............................................................ 1/16% On disbursements to travellers against letters of credit .................. ½% On collection, payment, or negotiating of coupons ........................ 1/8% On collection of bills of exchange and remittances of the amount .. 1/8% O n co ll ec ti on of mo n ey s i n ac count current a nd remittance of
proceeds, or payments made on demand ........................................ 1/8%
N.B. - The minimum rates above specified in the cases where the rate is not definitely indicated, apply to transactions the amount of which exceeds €232.94

On procuring freights to steamships or sailing-ships for
exportation, as per manifest .......................................................... 3%
On disbursements to steamships or sailing-ships ........................... 2% On disbursements to steamships or sailing-ships if under average .. 2½% On discharg ing and reloading, or on reshipping of goods on
sailing-ship or steamship with or without average, -
if the value of the goods be under €4658.75 ......................... ½%
if the value of the goods be above €4658.75 ......................... ¼% On transhipment of packages - according to the goods and the
number of packages -

for each package ................................................................. 0.01c to

0.06c
for bales or cases of textiles, -

for each bale or case ........................................................... 23c for iron, - per ton ................................................................. 23c

On the sale by public auction of goods or articles landed from
sailing-ships or steamships under average ..................................... 2%

Fees

For representing one or more persons before courts of justice - if the amount in litigation exceeds €2,329.37 -
in the court of first instance ............................................ 2%
in the court of second instance ........................................ 1%
if the amount in litigation is €2,329.37 or less -
in the court of first instance ............................................ 3%
in the court of second instance ........................................ 2% N.B. - If representation is in second instance only, the fee is -
if the amount in litigation exceeds €2,329.37 ....................... 2%
if it is €2,329.37 or less ....................................................... 3% On deposits in court as security for suits (besides interest at 6%
per annum) -
for a period not longer than one year .................................... 3%
for any further period not exceeding one year ....................... 2% On receipt of telegrams for transmission abroad -

per telegram ........................................................................ 58c

On giving orders -
to steamships, - for each order ............................................ 1.16c to sailing-ships, - for each order .......................................... 58c
On procuring orders, receiving and delivering goods, adjusting
accounts, procuring acceptances, or collecting and remitting ......... 3%
for del credere on the sale of goods on credit ....................... 2% On guarantees in favour of any person - per month ........................ ¼% On guarantees in favour of any person, accompanied by a deposit
(besides ¼% per month), interest, per annum, of ........................... 6%

PART III

FEES OF PUBLIC BROKERS

On the sale and purchase of goods (from each party) ..................... ½% O n th e sale an d pu rchase o f goods of small value, such as
pozzolana, soda-ash, firewood, mineral salts, and the like articles
(from each party) .......................................................................... 1%
N.B. - In the case of goods sold under discount, the brokerage is due on the net amount of the invoice
On exchange of goods - on the value of every article (from each
party) ........................................................................................... 3/8%
On the purchase and sale of any stock in public funds to bearer -

on the real value (from each party) ............................................... 1%

On the purchase and sale of foreign bills of exchange, discount of bills in the market, and of coupons - on the real value (from each
party) ........................................................................................... 1%
On the purchase and sale of gold and silver bullion, or of State or
foreign coins - on the real value (from each party) ........................ ½%
On whole or partial affreightment of sailing-ships or steamships -

payable by the master ................................................................... 2%

On affreightment of sailing-ships or steamships á la cueillette
(ship receiving goods) .................................................................. 3%

PART IV

FEES OF SURVEYORS L For a survey on the condition of a sailing-ship or on the condition

of the bo tto m or machi n ery o f a steamsh ip, wit h o r witho u t
average -
for the first survey ............................................................... 4.89 for any further survey .......................................................... 2.45
For a survey on goods -

If the t ime em ployed by t h e surveyo r s outside the said tw o harbours exceeds one day, and their continual attendance should be requi red b e yo nd t h at term , - i n ad di ti on to t h e exp e nses
incurred, for each day already commenced .................................... 12.23
On appraisement of a sailing-ship or steamship, her tackle and apparel, - besides the expenses incurred -
on the first €1,164.69 .......................................................... 1% on the second €1,164.69 ..................................................... ¾% on any further sum ............................................................... ½%