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Distinction between Treaty and Contract The Principle of Proportionality in State Contractual Actions in Investment Arbitration

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This paper argues the possibility of application of principle of proportionality, as a general principle of international law, for actions of the Host-State in pursuance of the contract with the investor, without abrogating the distinction between contract and treaty-based rights and obligations. The task would be to probe whether breach of contract with investor entails an international obligation of balancing the excess of exercise of contractual authority by the State with the investor’s contractual rights and delimit the ex ante discretionary powers of Host-State, which principle of proportionality seeks to promote.

Affiliations: 1: B.A. LL.B (Hons.) [GNLU] LL.M [Cantab.] Managing Partner, Hariharan and Hariharan Law Offices,


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