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Contracts Between Host States And Foreign Investors In The Absence Of International Investment Treaties

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Chapter Summary

For decades, legal opinion on a multitude of issues surrounding contracts between host States and foreign investors such as the legal nature of these contracts and the law applicable to them has been widely inconsistent. This unsatisfying situation and its reasons are exposed in this chapter. At the outset, however, it has to be determined what kind of contracts are the subject of this examination and which characteristics make them so difficult to deal with. The peculiar risks that characterize state contracts and differentiate them from commercial transactions are the involvement of a sovereign power as well as the application of public law and the long duration of mutual commitments. The chapter also briefly demonstrates that the internationalisation of state contracts remains doubtful in the absence of international investment treaties.

Keywords: foreign investors; host States; international arbitration; international investment treaties; internationalisation; state contracts



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