Introduction

Most modern Bilateral Investment Treaties (BITs) contain the so-called 'in accordance with the law' or 'legality requirement' provisions, establishing a requirement of compliance of the investment with the laws of the host country. The said provisions are by no means uniform or, to quote an ICSID Tribunal, '[t]here are various forms by which States establish the 'in accordance with the law of the host State clause''. Some BITs contain a relevant reference in the preamble. Yet, most frequently, the provision is included in the definition of the term investment.