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Arbitration Clauses In International Contracts

Parties to all international contracts face different issues depending on whether the other contracting party is a privately owned enterprise or a State-owned entity. In both circumstances, the foreign investor may have legitimate concerns about the partiality the local judiciary may have towards parties from its own State if a contractual dispute arises and about the enforceability of any judgment against the local party. When the other contracting party is itself a Sovereign State, the foreign investor confronts the universal perception ' if not actual reality ' that a judiciary as a government entity may be controlled by the State and biased against the investor. <br>For international transactions, arbitration in a neutral forum offers the hope of reducing bias and avoiding parallel lawsuits in different countries.

11 minute read November 22, 2004 at 09:31 AM
By
Ileana M. Blanco
Arbitration Clauses In International Contracts

Parties to all international contracts face different issues depending on whether the other contracting party is a privately owned enterprise or a State-owned entity.

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