LLOYD’S OPEN FORM
- IT IS FORMALLY KNOWN AS “LLOYD’S STANDARD FORM OF SALVAGE AGREEMENT”, IS A STANDARD FORM CONTRACT FOR A PROPOSED MARINE SALVAGE OPERATION.
- AFTER A STRICKEN SHIP ACCEPTS AN OFFER OF SALVAGE FROM A SALVOR, A BINDING CONTRACT IS CREATED.
- LOF IS CALLED OPEN BECAUSE IT SPECIFIES NO PARTICULAR SUM FOR THE SALCAGE JOB.
- INDEED IT MAY NOT SPECIFY A SUM, AS SALVAGE IS NOT A “CONTRACT FOR SERVICES” BUT AN AGREEMENT TO PROVIDE A SERVICE IN THE HOPE OF A REWARD TO BE DETERMINE LATER BY AN ARBITRATION HEARING IN LONDON.
- ALVAGE REWARD IS DETERMINED BY THE SALVAGE CONVENTION 1989.
- THE VALUE OF THE SHIP, ITS CARGO AND FREIGHT AT RISK ARE TAKEN INTO ACCOUNT WHEN THE ARBITRATOR DECIDES WHAT ARE THE AWARD SHOULD BE, TOGETHER WITH THE EXTENT OF THE DANGERS AND DIFFICULTY IN EFFECTING THE SALVAGE.