Common use of Compensation of losses Clause in Contracts

Compensation of losses. 1. The investors of a Contracting Party in the territory of the other Contracting Party that suffer damage due to war or other armed conflict, state of emergency, revolt, insurrection or riots, will be provided in terms of compensation, indemnization, restitution or otherwise damages, a treatment which is as favorable as the treatment that the Contracting Parties gives to its own investors or investors of any third state. 2. Notwithstanding the provisions of paragraph 1 of this Article, investors of one Contracting Party who, in any of the situations referred to in that paragraph, suffer damage in the territory of the other Party of the Contracting Party as a result of: (a) The seizure of property belonging to them, by the authorities of the other Contracting Party, or (b) The destruction of their property by the authorities of the other Contracting Party which is not the consequence of an armed conflict and was not necessary as a result of the situation arising, Shall be provided without delay a fair and adequate compensation for damages resulting from the seizure or destruction of their property.