Damages for Breach of Stabilisation Clauses in International Investment Law: Where Do We Stand Today?
International Energy Law and Taxation Review, Nos. 11 & 12, p. 246, 2007
6 Pages Posted: 14 Jan 2012
Date Written: 2007
The issue of damages or compensation for breach of contract and for that matter expropriation or nationalisation in international investment law still remains as enigmatic as ever. Even a cursory glance at international arbitral awards concerning the issue gives such an impression. The presence of stabilisation clauses in a contract is considered to be one of the elements of assessment of compensation for the aggrieved party. It is not clear how the stabilisation clauses concerned in the contract played a role in the quantum of compensation awarded by various arbitral tribunals. There appears no consistency in the arbitral decision-making process across the board on the issue. The paper attempts to appraise the concerned issues.
Keywords: Stabilization Clause, Breach of contract, Expropriation, Compensation
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