ABSTRACT
This chapter examines the legal nature of the foreign investment contract with its hybrid public–private nature and the involvement of sovereign states in an agricultural investment. It focuses on how investment contracts strike a balance between state responsibility and liability of the investors when public interests are at stake. The chapter explores challenges for Global South to 'green' the agricultural investment contract. National law in host state is the primary source of law that is used to govern foreign direct investment (FDI) in agriculture. Agricultural investment contracts raise concerns because they are closely related to the public interest and have major implications for sustainable development (SD). National laws often do require an impact assessment to be carried out prior to land transfer and many low and middle-income countries have adopted national legislation that prioritises environmental impact assessment (EIA). Land tenure is the most contentious issues in agricultural investments. The terms for compulsory land acquisition are usually set by national laws.
