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The Substantive Coverage Of Contracts Between Host States And Foreign Investors Through Investment Treaty Standards

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Chapter Summary

Adjudication of treaty claims generally deals with the provisions of the BIT itself, the domestic law of the host State and the general principles of international law. The contract claim, in contrast, generally is subject to the domestic law of the host State. The substantive protection standards of investment treaties comprise, on the one hand, a handful of positive treatment standards which require that the host State act in a certain manner towards the foreign investor and, on the other hand, the negative protection against expropriation without due compensation. This chapter examines the actual coverage of contracts by each of the substantive standards. Hence, the principle of separation between breaches of contract through commercial and governmental interference becomes more apparent than in the framework of the determination of the investors legitimate expectations.

Keywords: foreign investor; host State; substantive protection standards



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