Salvors who contract to assist a ship in distress must be paid according to their efforts, even though their services may prove useless to the vessel or cargo, unless by the terms and provisions of the contract their right to compensation depends on success. Ordinarily, a salvage agreement includes a "no cure, no pay" provision allowing compensation only on successful completion of the salvage operation.
Standard Form of Salvage Agreement (No Cure, No Pay) is a contract between a salvo (the person attempting to salvage the property) and the owner of the property. The agreement specifies that if the salvo is successful in salvaging the property, they will be entitled to a portion of the value of the property. However, if the salvo is unsuccessful in salvaging the property, then they will not receive any payment. There are two types of Standard Form of Salvage Agreement (No Cure, No Pay): Lloyd's Standard Form of Salvage Agreement (No Cure, No Pay) and International Salvage Union Standard Form of Salvage Agreement (No Cure, No Pay). Both of these agreements are legally binding contracts that outline the terms and conditions of salvage operations, including the rights and responsibilities of both the salvo and the property owner. The Lloyd's Standard Form of Salvage Agreement (No Cure, No Pay) is used for maritime operations and is regulated by the Law of General Average (LGA). It is based on a system of salvage awards, which are determined by a court or arbitrator. The International Salvage Union Standard Form of Salvage Agreement (No Cure, No Pay) is used for non-maritime operations, such as oil spills and environmental clean-up. This agreement is based on a system of salvage awards, which are determined by the International Salvage Union. Both types of Standard Form of Salvage Agreement (No Cure, No Pay) outline the rights and responsibilities of the salvo and the property owner. They also specify the compensation that the salvo will receive if they are successful in salvaging the property.
