Contributory Value Law and Legal Definition
Contributory value is the value of property saved as a result of a General Average Act which forms the basis for determining each party's contribution in General Average. It is the actual value of each cargo shipment and of the vessel at the time of arrival at the destination or termination of the voyage even in a damaged condition that is used to calculate each cargo owner’s and the vessel owner’s share of the General Average loss or Salvage Award. General Average is a principle of equity in which all parties involved in a sea adventure proportionately share losses resulting from a voluntary effort to save the entire venture from an imminent peril. There are two types of General Average acts namely voluntary sacrifice of a part of the vessel or a part of the cargo and extraordinary expense necessarily incurred for the joint benefit of vessel and cargo.
