What question did this study set out to answer?

The aim is to explore how arbitral tribunals address domestic legal constraints in investment contracts and their implications for contractual validity.

May 8, 2026European Journal of International Law

Equitable Principles as Deus ex Machina: Illegality and Contract Validity in Investment Contract Arbitration

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XSXueji SuUniversity of Macau

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Implication

This article examines how arbitral tribunals handle mandatory law claims in investment contracts, indicating potential legal inconsistencies.

Key Points

The aim is to explore how arbitral tribunals address domestic legal constraints in investment contracts and their implications for contractual validity.
Analyzed arbitral practice regarding mandatory law claims in contract-based investment arbitration.
Critically assessed the application of estoppel and good faith principles by tribunals.
Investigated the shift from legality to equity in tribunal decisions regarding state rights.
Tribunals often apply estoppel and good faith as autonomous norms, impacting contractual validity.
The equity-based reasoning allows tribunals to circumvent domestic legal constraints.
This approach risks undermining party autonomy and the legitimacy of investment arbitration.

Cite This Study

Xueji Su (2026) studied this question.

synapsesocial.com/papers/69fd7f86bfa21ec5bbf08049 https://doi.org/10.1093/ejil/chag019

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Implication

This article examines how arbitral tribunals handle mandatory law claims in investment contracts, indicating potential legal inconsistencies.

Equitable Principles as Deus ex Machina: Illegality and Contract Validity in Investment Contract Arbitration

Discussion

Member takes

Implication

Key Points

Cite This Study

Equitable Principles as Deus ex Machina: Illegality and Contract Validity in Investment Contract Arbitration

Discussion

Member takes

Implication

Key Points

Cite This Study

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