Renegotiation and Contract Adaptation in International Investment Projects

Kolo, Abba; (, T.W. Wälde

doi:10.1163/221190000x00014

Cited by 41 publications

(6 citation statements)

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“…This is simply mistaken. Long-standing international arbitral practice demonstrates that international tribunals are very willing to enforce investment contracts against host states (Kolo & Wälde 2000). 6…”

Section: Legal Pluralismmentioning

confidence: 99%

Bilateral Investment Treaties, Credible Commitment, and the Rule of (International) Law: Do BITs Promote Foreign Direct Investment?

Yackee

2008

Law Soc Rev

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A long line of research, beginning with Macaulay's (1963) well‐known study of “Non‐Contractual Relations in Business,” suggests that the formal trappings of domestic law often have effects on private behavior that are, at best, “indirect, subtle, and ambiguous” (Macaulay 1984:155). Law and society scholars have spent somewhat less time exploring whether international law's effects on behavior are similarly attenuated. In this article I examine whether foreign investors take the presence of strong formal international legal protections into account when deciding where to invest. I focus on whether the presence of bilateral investment treaties, or BITs, meaningfully influences investment decisions. I present results from a statistical analysis that examines whether the formally strongest BITs—those that guarantee investors access to international arbitration to enforce investors' international legal rights—are associated with greater investment flows. I find no clear link between treaty protections and investment, a finding consistent with past law and society research but in tension with claims common in the BIT literature that the treaties should have dramatic effects on investor behavior.

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Section: Legal Pluralismmentioning

confidence: 99%

Bilateral Investment Treaties, Credible Commitment, and the Rule of (International) Law: Do BITs Promote Foreign Direct Investment?

Yackee

2008

Law Soc Rev

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“…Section 2-615 of the USA Uniform Commercial Code as well as section 268(2) of the USA Restatement (Second) of the Law of Contracts recognizes the principle of 'commercial impracticability.' This doctrine allows the parties to request a renegotiation in instances where circumstances have altered so radically that performance of the contract is no longer economically viable (Kolo & Wälde 2000). Indeed, the change of circumstances must be unanticipated at the time that the original contract was being signed and must be so financially damaging to the party, with the possibility of even driving the said party to bankruptcy, as decided in Alumnium Co of America v Essex Group Inc, 449 F. Supp.…”

Section: Renegotiation Of Contracts Without Renegotiation Clausementioning

confidence: 99%

“…The general rule is that pacta sunt servanda is the prevailing principle when one contracts under the civil law. However, this rule only subsists if the underlying circumstances which were essential in the conclusion of the agreement continues to exist (Kolo & Wälde 2000). The principle of rebus sic stantibus applies once there is a fundamental change in circumstances, as the courts find no justification for holding the parties to contracts which were deemed impossible to perform.…”

Section: Renegotiation Of Contracts Without Renegotiation Clausementioning

confidence: 99%

Permanent Sovereignty over Natural Resources and Contract Stability in Transnational Petroleum Investment Contracts

2021

JLPG

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This paper makes a critical analysis of the principle of permanent sovereignty over natural resources and contract stability as applicable to transnational petroleum investment contracts. It considers the extent to which these concepts affect foreign direct investment in the petroleum industry. This work further demystifies the theory of contract stability as a panacea to the tense environment contrived by the principle of permanent sovereignty over natural resources. The doctrine of pacta sunt servanda as applicable to stabilization clauses is considered towards explicating how it procures stability in oil investment contracts. In this wise, other like devices like renegotiation, clausula rebus sic stantibus, etc are not left out, particularly as they introduce some element of flexibility and attenuate the hardships that might arise due to strict insistence on the application of principle of pacta sunt servanda to the dynamics of the petroleum industry. This work adopts the synthesis and analysis as well as the comparative methodology in reviewing the relevant materials consulted in the course of this work. It argues that parties to transnational petroleum contracts should pursue stability in such agreements through the employment of such devices that ensure flexibility within the context of a dynamic petroleum industry.

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“…he philosophy behind renegotiation is that the contractual relationship is more important than the formal contract document itself and that parties will make all efforts to let this relationship survive if and to the extent that it is in their interest to let the relationship survive -and sometimes send a signal to the outside world over the 'reasonableness' of the government or company in dealing with its partners on a long-term basis of mutual benefit and trust" (Kolo and Wälde, 2004).…”

Section: A Contract Renegotiationsmentioning

confidence: 99%

“…Further, they have not just been instigated by governments. At times, companies have pushed for them (Kolo and Wälde, 2004).…”

Section: A Contract Renegotiationsmentioning

confidence: 99%

Contracting and regulatory issues in the oil and gas and metallic minerals industries

Likosky¹

2009

Transnational Corporations

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This article looks at key regulatory and contractual issues in the oil and gas and also metal minerals industries. It provides an overview of contract types and discusses several state-of-the-art issues. In discussing contract types, it first provides a brief historical backdrop. It then turns to the major contract types. Both the history of traditional concessions and the enumerated present-day contract types are common to oil and gas and also metal mineral extraction. For this reason, they will be discussed together. Among state-of-the-art issues, the article considers (1) contract renegotiations, mainly with regard to Bolivia, Ecuador and the Venezuela; (2) the proposed Iraqi oil law; and (3) the handling of human rights and environmental issues by projects.

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Renegotiation and Contract Adaptation in International Investment Projects

Cited by 41 publications

References 0 publications

Bilateral Investment Treaties, Credible Commitment, and the Rule of (International) Law: Do BITs Promote Foreign Direct Investment?

Bilateral Investment Treaties, Credible Commitment, and the Rule of (International) Law: Do BITs Promote Foreign Direct Investment?

Permanent Sovereignty over Natural Resources and Contract Stability in Transnational Petroleum Investment Contracts

Contracting and regulatory issues in the oil and gas and metallic minerals industries

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