Law of salvage
Law of salvage
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Law of salvage

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Law of salvage

The law of salvage is a principle of maritime law whereby any person who helps recover another person's ship or cargo in peril at sea is entitled to a reward commensurate with the value of the property saved.

Maritime law is inherently international, and although salvage laws vary from one country to another, generally there are established conditions to be met to allow a claim of salvage. The vessel must be in peril, either immediate or forthcoming; the "salvor" must be acting voluntarily and under no pre-existing contract; and some life or property must be successfully saved. A modern addition rewards a salvor for the prevention of oil spills and environmental damage.

With its origins in antiquity, the basis of salvage is that a person helping another at sea is putting himself and his vessel at risk and should be appropriately rewarded. A related consideration was to prevent piracy, since any vessel in peril might well be abandoned to pirates if the owner did not reward an honest salvor. Salvage law has been recognized for centuries in such documents as the edicts of Rhodes and the Roman Digest of Justinian. It is still a nearly universally recognized right, though conditions for awards of salvage vary from country to country.

The right to be rewarded for salvage at sea is based both on principles of fairness and public policy: the law seeks to be fair both to the property owners and to the salvors. The legal entitlement to a salvage reward arises when a person, acting as a volunteer (that is, without any pre-existing contractual or other legal duty so to act), preserves or contributes so to preserving at sea any vessel, cargo, freight, or other recognized subject of salvage from danger.

A salvage situation arises when a shipowner accepts an offer of help from a salvor. To that extent, the arrangement is contractual, but it is not a contract for services with a pre-arranged fee (such as, say, a towage contract). Instead, the law provides that after the service is done a court or arbitrator will make an award taking into account:

A formal contract is not strictly necessary, provided there is evidence that the owner has acquiesced in the salvor's intervention. The assumption here is that when faced with the loss of his vessel and cargo, a reasonable prudent owner would have accepted salvage terms offered, even if time did not permit such negotiations. Even so, the shipowner is entitled to reject any offer of help, and would do so if the shipping line had already made arrangements with a professional salvor of their choice.

There is no equivalent to salvage when ashore: a person who assists another on land has no entitlement unless a court deems that an implied contract had arisen, whether objectively or subjectively.

Traditionally, salvage only recognizes a ship or craft ("vessel"), cargo on board, freight payable, and bunkers carried on board as the subject of property in danger.

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