Your vessel is disabled and in imminent danger of grounding on a lee shore. The Master agrees to salvage services using Lloyd's Open Form of Salvage Agreement. Which is TRUE?
• Lloyd's Open Form (LOF) – what kind of contract it is and when it is used • Meaning of "no cure-no pay" in salvage law • Who normally decides a salvage award under LOF (think: arbitration vs. court)
• Ask yourself: Is LOF designed to let the Master quickly accept help without first negotiating price or does it immediately transfer ownership or control of the vessel? • Consider what happens if the salvage attempt fails – does the owner or underwriters still owe money under a classic LOF? • Think about who normally has the authority under LOF to fix the salvage award – a specific arbitration body or a regular Admiralty Court lawsuit?
• Check which statement correctly matches the core feature of LOF: speedy agreement, standard terms, and traditional "no cure-no pay" principle. • Verify whether LOF gives the salvor any ownership rights in the ship or just a right to a monetary award. • Confirm if under classic LOF the award is usually fixed by Lloyd’s arbitration in London, not by normal court proceedings.
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