Question 2973 Deck General

The correct answer is A) The salvage service is on a "no cure-no pay" basis. This is correct because the Lloyd's Open Form of Salvage Agreement is a standard contract that provides for a "no cure-no pay" basis, meaning the salvor only receives a reward if the salvage operation is successful in saving the vessel. This is a key feature of the Lloyd's Open Form, which incentivizes the salvor to make their best efforts to salve the vessel. The other options are incorrect because: B) The salvor does not become the owner of the vessel, C) The salvage award is typically decided through arbitration, not a court suit, and D) Underwriters cannot repudiate the agreement if it is unsuccessful, as that would go against the "no cure-no pay" principle.