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A Critique of the Concept of Legitimate Expectations of Investors in Contrast with the Legitimate Expectations of Host States in International Investment Law

Document Type : Scientific Research

Authors

1 Associate Professor, Department of Private and Islamic Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran. (orcid: 0000-0001-5436-1344)

2 Master's Student in Financial Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran. (orcid: 0000-0002-9404-9133)

3 Associate Professor, Department of Private and Islamic Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran. (orcid: 0000-0002-0057-7534)

Abstract

Legitimate expectations is a concept or doctrine that is usually invoked by investors inlawsuits against the host state in courts and arbitration tribunals for breach of commitments(by the host state of capital)thathave disrupted their investments;although these claims are not essentially based on explicit written agreements.What the concept of legitimate expectations entails is not very clear, and arbitration tribunals also differ in their practice due to the fluidity of the concept.It should be said that legitimate expectations have been mainly used as a component (or one of the essential elements)of the standard of fair and equitable treatment(FET)although some have argued that it may have become an independent doctrine or possibly a general principle of international law.The inclusion of this concept in the national or constitutional law of countries has certainly provided more protection and guarantee for investors,which is often to the detriment of the host countries of capital.Specifically,host developing countries have done and continue to do so.These countries sometimes found themselves in conflict with the extensive expectations of investors that they did not expect.Despite this, the legal basis for the application of this concept in international law has not been examined accurately.This research examines the concept of legitimate expectations and its meaning and content, its legal and legal basis in international investment law,the disadvantages it has for host states,how to limit the application(and potential impact)of this concept by host states and examines the possibility of creating legal and legitimate expectations required from investors in favour of host countries and their citizens.

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References
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Civil Law Knowledge
Volume 12, Issue 24 - Serial Number 24
January 2024
Pages 121-136
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