Ethics Governing International Investment Contracts unless the Applicable Law is Established

Settlement of disputes arising from foreign investment may be possible if the governing law is clear. Irrespective of international treaties, since the legal relationship between the investor and the investee is often included in investment contracts, the law governing such contracts is determined. But there are cases where the ruling law has not been determined. In this case, three solutions are foreseen. Implementation of host state law, application of international law, and enforcement of disputes. The parties to the contract may also agree upon the law in force during the proceedings. The purpose of this research paper is to determine if ethics that are the source of legal rules can be resolved if the law governing investment contracts is not specified.

Unless the law governs foreign investment contracts and international law rules govern the contract, these rules will in addition to the legal rules, based on ethical principles such as the principle of fairness, the principle of peaceful resolution of disputes, and the principle of willpower and so are the goodwill principle. Therefore, in the absence of the ruling law, the existing disputes can be resolved by applying these ethical principles that have entered the legal field.