An American manufacturer has been asked to provide construction equipment to a foreign government.The contract is for a sizable amount,so the manufacturer wants to protect itself should the foreign government refuse to pay for the equipment once it has been delivered.What should the American manufacturer insist upon having if it wants to protect its right to sue the government in the event it does not pay for the goods?

Question

Quizplus · Accepted Answer

A waiver of immunity will allow the American manufacturer to sue the foreign government in the event that it does not pay for the goods. Immunity would otherwise protect the foreign government from being sued in foreign courts. A release of sovereignty and a statement of extraterritoriality are not relevant in this scenario, and although arbitration is an option, it may not provide the same level of protection as a waiver of immunity.

An American Manufacturer Has Been Asked to Provide Construction Equipment