Lloyd's Open Form
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A Lloyd's Open Form, formally Lloyd's Standard Form of Salvage Agreement, but more commonly referred to as LOF, is a standard legal document for a proposed marine salvage operation. The two-page contract is published by Lloyd's of London. It is called "open" because it is literally open, with no amount of money being stipulated for the salvage job: the sum to be paid is determined later in London by a professional arbitrator. At the top of page one, beneath the title "Salvage Agreement" is a statement of the contract's fundamental premise. "NO CURE – NO PAY". The form originated in the late 19th century and is the most common such form of international salvage agreement.[1]
The arbitrator, who is invariably a Queen's Counsel practising at the Admiralty Bar, follows the English law of civil salvage, in determining the salvage award. The value of the ship, its cargo and freight at risk are taken into account when the arbitrator decides what the award should be, together with the extent of the dangers and the difficulty in effecting the salvage.
References
- ^ "Lloyd's Open Form" (PDF). Lloyd's of London. Retrieved 22 March 2014.