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AVERAGE – (1) All extraordinary or accidental expenses which may be incurred during the voyage
for the preservation of the vessel or cargo or both (2) All damages or deterioration which the vessel may
suffer from the time it puts to sea at the port of departure until it casts anchor at the port of destination, and those suffered by the merchandise from the time they are loaded in the port of shipment
until they are unloaded in the port of their consignment
SIMPLE AVERAGE - expenses/damages caused to the vessel/cargo not inured to common benefit and
profit of all the persons interested in the vessel and her cargo; borne by respective owners
GENERAL AVERAGE - expenses/damages deliberately caused in order to save the vessel, its
cargo or both from a real and known risk
REQUISITES
1. Common danger present
2. Arising from accidents of sea, disposition of authority
3. Peril imminent and ascertained
4. Part of vessel or cargo deliberately sacrificed
5. Intended to save vessel and cargo or both
6. Successful saving of vessel or cargo
7. Proper legal steps and authority taken.
FORMALITIES TO INCUR GROSS AVERAGE
1. There must be an assembly of the sailing mate and other officers with the captain including those with interests in the cargo
2. There must be a resolution of the captain
3. The resolution shall be entered in the log book, with the reasons and motives and the votes for and against the resolution
4. The minutes shall be signed by the parties
5. Within 24 hours upon arrival at the first port the captain makes, he shall deliver one copy
of these minutes to the maritime judicial authority thereat
for the preservation of the vessel or cargo or both (2) All damages or deterioration which the vessel may
suffer from the time it puts to sea at the port of departure until it casts anchor at the port of destination, and those suffered by the merchandise from the time they are loaded in the port of shipment
until they are unloaded in the port of their consignment
SIMPLE AVERAGE - expenses/damages caused to the vessel/cargo not inured to common benefit and
profit of all the persons interested in the vessel and her cargo; borne by respective owners
GENERAL AVERAGE - expenses/damages deliberately caused in order to save the vessel, its
cargo or both from a real and known risk
REQUISITES
1. Common danger present
2. Arising from accidents of sea, disposition of authority
3. Peril imminent and ascertained
4. Part of vessel or cargo deliberately sacrificed
5. Intended to save vessel and cargo or both
6. Successful saving of vessel or cargo
7. Proper legal steps and authority taken.
FORMALITIES TO INCUR GROSS AVERAGE
1. There must be an assembly of the sailing mate and other officers with the captain including those with interests in the cargo
2. There must be a resolution of the captain
3. The resolution shall be entered in the log book, with the reasons and motives and the votes for and against the resolution
4. The minutes shall be signed by the parties
5. Within 24 hours upon arrival at the first port the captain makes, he shall deliver one copy
of these minutes to the maritime judicial authority thereat
