The Salvage Agreement

A Salvage Agreement is a legal contract between a shipowner and a salvage company. When a ship is in trouble, such as being stranded or damaged, the salvage company helps recover it or its cargo. In return, they are compensated, typically through a percentage of the value of the ship or cargo saved. The agreement outlines responsibilities, payment terms, and conditions under which the salvage operation will occur. Essentially, it's a way to ensure that if something goes wrong at sea, there’s a clear plan for rescue and compensation.