Criteria for Evaluation of Damages Due to the Breach of Capital Investment Contract in Islamic Jurisprudence and International Arbitration Precedent

The standard of compensation of damages has an important role in the evaluation of damages and its remedy in the field of international capital investment contracts. An important question in the case of the breach of international obligations or breach of contracts from the part of country in which the investment is done, is whether it should pay the damages thoroughly or partially? In another word, for the evaluation of the damages there are two methods. One is that the foreign country should be supposed in the situation that the contract was not broken and the benefit which would be obtained is counted. The other way is that only the losses that really it faces is regarded? Up to now, courts of arbitration have not accepted a single standard to asses the losses and many accepted the
same norm which is the standard to evaluate the damages in the case of dispossession. That is in the case of breach of the investment obligations perfect compensation and in the case of breach of the investment contract partial one should be done. It looks as if Muslim Jurists mainly accepted payment of partial damages.