OOW-3.4.4

Basic law of salvage

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Where Candidates Lose Marks

The most common failure is confusing salvage with towage, and then giving a vague answer about 'rescue at sea'. Examiners want to hear five precise elements that make salvage legally distinct — if a candidate cannot articulate what makes a valid salvage claim, they will not pass this topic.

A secondary weakness is failing to connect LOF (Lloyd's Open Form) to the salvor's practical reality onboard, or not knowing that the owner/master cannot simply refuse a salvor.

What Salvage Actually Is

Salvage is a voluntary service rendered to a vessel or property in danger at sea, which is successful in whole or in part, without any pre-existing duty to assist. The salvor earns a reward proportional to the outcome — no cure, no pay is the fundamental principle.

Five elements the examiner expects you to name:

  1. Voluntariness — the salvor has no pre-existing contractual or legal duty to assist
  2. Danger — the vessel or property must be in genuine peril (not merely inconvenienced)
  3. Success — some property must be saved; a failed attempt earns nothing under the basic rule
  4. Maritime property — ships, cargo, freight, and bunkers qualify; lives alone do not generate a salvage reward (though life salvors share in the award for property saved)
  5. Without the owner's consent being a bar — a master can accept salvage assistance; the vessel's peril overrides owner reluctance

Lloyd's Open Form (LOF)

LOF is the standard salvage contract used internationally. Its key features:

  • 'No cure, no pay' basis — reward only on success
  • Arbitration in London under Lloyd's Salvage Arbitration Branch
  • Special Compensation (SCOPIC clause) allows a salvor to claim costs plus a mark-up when preventing or minimising environmental damage, even where no property is saved — this is the major exception to 'no cure, no pay'

The Master's Role

The master has authority to enter into a salvage agreement on behalf of owners and cargo interests. A master should not unreasonably refuse assistance when the vessel is in genuine danger. Accepting LOF is common practice; the master signs on behalf of all interests.

MSN 1858 and the 1989 International Salvage Convention

The oral examination syllabus underpinned by MSN 1858 expects candidates to know the 1989 International Salvage Convention, which codified the key principles above, including special compensation for environmental protection — a significant departure from pure 'no cure, no pay'. The Convention is the instrument that introduced these requirements into international law; MSN 1858 is the UK certification and manning notice that defines the certificate requirements under which this knowledge is assessed.

Practice questions

recallcore

What are the five essential elements that must be present to constitute a valid salvage claim?

recallcore

What does 'no cure, no pay' mean in the context of Lloyd's Open Form, and what is the principal exception to this rule?

scenariocore

You are master of a yacht that has lost propulsion 40 miles offshore in deteriorating weather. A commercial tug arrives and the master offers LOF. Your owner calls and instructs you to refuse, saying he is arranging his own tow from a friend's vessel that is six hours away. What do you do and why?

oralstretch

Tell me the difference between salvage and towage, and why that distinction matters legally.

scenariostretch

A salvor successfully prevents a yacht from grounding on a reef, but the yacht itself sustains further damage during the operation and the owner claims the salvage was poorly executed. Does the salvor still earn a reward?

Independent preparatory study aligned to the MCA OOW (Yachts <3000 GT) oral examination syllabus. Not an MCA-approved course and confers no credit toward a Certificate of Competency.