Florida State University Journal of Transnational Law & Policy


Modern concession agreements between States and foreign corporations sometimes contain, in addition to choice-of-law clauses, the specific commitment on the part of the contracting State not to alter the terms of the concession, by legislation or by any other means, without the consent of the other contracting party. These stipulations are usually known as "stabilization" clauses. The commitment embodied in these clauses poses a special situation from the standpoint of State responsibility. Before discussing such a situation, let us first see what is the traditional position as to the international responsibility of States for measures affecting contractual rights, and also, the position as to responsibility in situations where those rights are derived from concession agreements containing choice-of-law clauses.