Common use of Compensation for Losses or Damages Clause in Contracts

Compensation for Losses or Damages. 1. Each Contracting Party shall accord to investors of the other Contracting Party that have suffered loss or damage relating to their investments in the Territory of the former Contracting Party due to armed conflict or a state of emergency such as revolution, insurrection, civil disturbance or any other similar event in the Territory of that former Contracting Party, treatment, as regards restitution, indemnification, compensation or any other settlement, that is no less favourable than that which it accords to its own investors or to investors of a non- Contracting Party, whichever is more favourable to the investors of the other Contracting Party. 2. Any payment as a means of settlement referred to in paragraph 1 shall be effectively realisable, freely transferrable, and freely convertible at the market exchange rate into freely usable currencies. 3. Without prejudice to paragraph 1, investors of a Contracting Party who, in any of the situations referred to in that paragraph, suffer a loss in the Territory of the other Contracting Party resulting from requisitioning, or destruction which was not required by the necessity of the situation, of their property or part thereof by the latter’s forces or authorities shall be accorded by the latter Contracting Party prompt, adequate and effective restitution or compensation.

Compensation for Losses or Damages. 1. Each Contracting Party shall accord to investors of the other Contracting Party that have suffered loss or damage relating to their investments in the Territory of the former Contracting Party due to armed conflict or a state of emergency such as revolution, insurrection, civil disturbance or any other similar event in the Territory of that former Contracting Party, treatment, as regards restitution, indemnification, compensation or any other settlement, that is no less favourable than that which it accords to its own investors or to investors of a non- non-Contracting Party, whichever is more favourable to the investors of the other Contracting Party. 2. Any payment as a means of settlement referred to in paragraph 1 shall be effectively realisable, freely transferrable, and freely convertible at the market exchange rate into freely usable currencies. 3. Without prejudice to paragraph 1, investors of a Contracting Party who, in any of the situations referred to in that paragraph, suffer a loss in the Territory of the other Contracting Party resulting from requisitioning, or destruction which was not required by the necessity of the situation, of their property or part thereof by the latter’s 's forces or authorities shall be accorded by the latter Contracting Party prompt, adequate and effective restitution or compensation.