State Contracts: the True and Unparallelled Reaches of Their Binding Force

01.15.2018 [0]

State contracts, being contractual arrangements between States and foreign entities, have evolved into the most potent safeguard instrument for the foreign entities` interests available - both in public and private international law. The State contract, if properly drafted, becomes the sole law of the parties and even withstands the State`s other international obligations (including, those under the EU law), in the latter case obliging the State to indemnify the foreign entity. It is, consequently, important for the persons representing or assisting States, their Governments or authorities in negotiating, drafting-up and implementing these contracts to be aware of the true status of the present law. While virtually all scholarly work is devoted to the protection of the foreign entities` interest, the Article aims to be neutral and explores what clauses - explicit or implicit - trigger the mentioned consequences. The States are advised, accordingly, to be cautious of what clauses they include in their contractual dealings.

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