Lloyds Open Form Salvage Contract Law and Legal Definition
A Lloyd's Open Form salvage is formally known as Lloyd's Standard Form of Salvage Agreement. It is more commonly known as LOF. It is a standard marine salavge contract which is legally binding. The two-page contract is published by the famous Lloyd's of London. It is an open contract because no amount of money is being stipulated for the salvage job. The salvage amount is determined later in London by an arbitrator. The form originated in the late 19th century and is the most common such form of international salvage agreement.
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. In the U.S. Lloyds open form salvage contract is known as U.S.open form salvage agreement.