A FOCUS ON MINIMIZING POTENTIAL RISKS BY PROCEEDING UNDER A BILATERAL OR MULTILATERAL TREATY INSTEAD OF A CONTRACT
The paper discusses the advantages of utilizing bilateral or multilateral treaties instead of contracts in international business. It specifically focuses on the various international agreements as an example of a treaty that establishes clear legal obligations and reduces potential conflicts between parties. The document argues that treaties provide greater legal certainty and stability for organizations, particularly in complex legal situations involving different parties. It highlights the disadvantages of depending solely on contracts, such as ambiguous terms and inadequate dispute resolution mechanisms. The document mentions that bilateral investment treaties have been controversial and calls for a review of the traditional model. It emphasizes the benefits of treaties, including the ability to regulate foreign direct investment and minimize risks. The paper concludes that negotiating treaties may require more effort, but they ultimately offer greater stability and minimize potential risks compared to contracts.