Question

Explain in your own words how a host government lacking an adequate legal system can impact international dispute settlement on litigation and performance of contract. Your essay must consist of 200 words or more in length or it will not be accepted.

Answer 1

A host government lacking adequate legal system can affect the international dispute settlement and other issues related to the performance of the contract in different ways. The first way is that lacking of adequate legal system, will not have tie ups with the legal system of other nations so that international disputes are resolved. Not having tie ups or agreement, will make other foreign enterprises to find their host nations (foreign country for the host nation) as a safe nation where they can hide out. The second way is presence of loopholes that makes authorities to become unable to enforce the laws. It makes the entities to form the international agreement, but they take advantage of the loop hopes and get away with it without honoring the contract terms. It only happens when legal system is not adequate. The third way is lack of rights to the authorities. It will increase the cases of default as performance of the contract will not take place. It will reduce the reputation of the country will be tarnished as reputed firms will not come to the host country for international trade. It will cause harm to the growth and development of the country.  
Any country, lacking adequate legal system, will build a poor legal environment where international dispute settlement will not be resolved properly and parties will utilize the inadequacies of the system to not to respect the terms and conditions of the contract.