Introduction

The unilateral change or breach of state contracts often take place as state as a sovereign entity can take measures for protecting its overriding public interests. The public interest imperative in a State contract provides a fundamental legal basis for State intervention by legislation and administrative action and thus places the foreign investor- private party to the State contract in a legally unequal position compared to the State party in terms of its capacity to exercise legislative power. The host State's unilateral measures can cover wide range of action including from ...