Question 2897 Deck General

The correct answer is D) The cost of the salvage is set at a fixed price. In a Contract Salvage Agreement, the cost of the salvage operation is negotiated and set at a fixed price, rather than being determined by a percentage of the value of the salved property. This is in contrast to a "no cure-no pay" agreement, where the salvor is only paid if the salvage operation is successful. The Lloyd's Open Form (LOF) Salvage Agreement is a standard form of contract, but it is not the only type of Contract Salvage Agreement. The crew's percentage of the salvage award is determined by the terms of the specific contract, not a universal rule.