Part III The Contractual Legal Framework, 12 Contractual Stability, Instability, and Renegotiation
From: The Three Laws of International Investment: National, Contractual, and International Frameworks for Foreign Capital
Jeswald W. Salacuse
- International economic law — Foreign Direct Investment — Law of treaties — Consensual arrangements other than treaties
Experienced lawyers and executives know that the challenge of international investment negotiation is not just “getting to yes,” 1 but also staying there. Despite lengthy negotiations, skilled drafting, and strict enforcement mechanisms, parties to solemnly signed and sealed international investment contracts often find themselves returning to the bargaining table later on to “renegotiate” their agreements. The last half of the twentieth century witnessed numerous examples of renegotiation in international investment: the renegotiation of mineral and petroleum...