Corruption and Contracts with States or State Owned Enterprises: Effects on Enforcement of the Contract in Arbitration Decisions
7 Pages Posted: 18 Apr 2018
Date Written: April 13, 2018
Corruption issues in international arbitration decisions predate all conventions on corruption, as well as American foreign corruption law. This article looks at some of the earlier cases which set the groundwork for dealing with allegations of corruption regard to international contracts and concessions as well as the recent cases, showing the contrasting views.
In particular, the recent examples of cases wherein corruption is alleged by the state party to the arbitration often results in unjust enrichment if the state is permitted to keep the assets of the investor without paying for them.
The 2016 decision of the UK High Court in National Iranian Oil Company v. Crescent Petroleum, which provided a very different analysis of the issues of corruption the formation of an international contract is highlighted.
Keywords: corruption, contracts with states, state owned enterprises, unjust enrichment
JEL Classification: K2, K20, K33, K4, M1, M16, M48, F02, F2, F23
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