ABSTRACT
This chapter analyzes the governing law of agreements, which is refereed to when a dispute triggered by unilateral cancellation of an agreement for the development of natural resources by a host state is dealt with as a dispute regarding interpretation, application, and implementation of the agreement, on the presumption that the existing agreement is valid. Presuming an agreement is valid, it is not a particularly complicated problem with respect to an ordinary agreement under domestic law if a dispute arises regarding its interpretation, application, and implementation. This type of provision is an example of the adoption of the Calvo Doctrine agreed and asserted by all Latin American countries after the end of the 19th century. In traditional legal process, concessions clearly designating the governing law of the agreement were the exception to the rule, and there were far more concessions that did not designate the governing law of the agreement.
