“Lloyd’s Form has been signed” is a statement which it is quite common to read in casualty reports and it is no doubt true that Lloyd’s Standard Form of Salvage Agreement “No Cure — No Pay” or, as it is sometimes called, “Lloyd’s Open Form” has universal recognition and is the common factor in a great many of the salvage services which are rendered throughout the world.

Historically, the Form had its origin in 1890 when a salvor in the Dardanelles agreed to render services on the basis that his remuneration would be fixed by the decision of the Committee of Lloyd’s or that of an arbitrator appointed by them. Two years later the first Standard Form of Agreement was published. Throughout the years the Form has been revised from time to time and the Standard Agreement in its present form was published in 1972.

I propose to consider the provisions of the current Lloyd’s Form of Salvage Agreement in some detail.

Clause 1 contains a formal undertaking by the salvor, who throughout the Agreement is described as the “Contractor”, to use his best endeavours to salve the subject matter of the services upon the principle of “No Cure — No Pay”. This undertaking by the contractor properly to exert himself carries with it an obligation to perform the task which he has assumed with due skill and without negligence. If the contractor is a professional salvor he must perform his duties with the skill of an expert. Any failure on the part of the contractor in this respect will render him liable in damages and may deprive him of any award.1

It is specifically agreed that the services shall be rendered and accepted as salvage services. It is to be noted that the contractor is not given any exclusive right to salve and accordingly the other parties to the Agreement are free to engage additional or alternative assistance and would be justified in doing so if it proves that the contractor, for any reason, is unlikely successfully to complete the service.2 Another point to be noted is that the clause contemplates specifically that the form of Agreement may be entered into after salvage services are under way. In this respect cl. 1 provides:

“In the event of the services … or any part of such services having been already rendered at the date of this Agreement by the Contractor to the said vessel and/or her cargo it is agreed that the provisions of this Agreement shall apply to such services”.