Your vessel is disabled and in imminent danger of grounding on a lee shore. The Master agrees to salvage services using Lloyd's Open Form of Salvage Agreement. Which is TRUE?

Correct Answer: Option A — The salvage service is on a "no cure-no pay" basis.

Lloyd's Open Form (LOF) is the industry-standard salvage contract based on the principle of 'no cure-no pay.' If the salvor fails to save the vessel or cargo, they receive no compensation. If successful, the salvage award is determined through arbitration, not by an Admiralty Court suit, based on the value saved.