International Commercial Arbitration and the Losses Resulting from the State's Unilateral Termination of Contracts: The Case of the Iraqi Ministry of Transport Against Egyptian Horus Airlines.

Al-Obaidi, Musaab Thair Abdul-Sattar

doi:10.63677/jqlap.2025.186719

International Commercial Arbitration and the Losses Resulting from the State's Unilateral Termination of Contracts: The Case of the Iraqi Ministry of Transport Against Egyptian Horus Airlines.

https://doi.org/10.63677/jqlap.2025.186719

Volume 16, Issue: 1 part 2 - Serial Number 1
Spring 2025

Pages 589-618

AL-Qadisiya Journal For Law and Political Sciences

Document Type : Research Paper

Author

Musaab Thair Abdul-Sattar Al-Obaidi

College of Islamic Sciences - Al-Iraqia University

Abstract

The significance of our research lies in the importance of international commercial arbitration as a means of resolving disputes between commercial parties, where arbitration is considered an effective alternative to traditional courts. Our study discusses the losses resulting from the unilateral termination of contracts by the state, which may negatively impact the rights of other parties involved.
Our research addresses the importance of the contracting parties' adherence to the terms of commercial contracts and other agreements alike, with a complete commitment to the notion that a contract serves as a binding law for the contractors—as established by legal scholars thereby affecting the nature of the relationship between the Iraqi state and its contracting entities. We aim to distinguish between administrative contracts concluded by the state domestically and those entered into with foreign investment entities, elucidating the different
legal aspects of each type of contract.
Our study focuses on how to terminate international trade contracts by mutual agreement of the parties, rather than through unilateral termination, and the impact this has on foreign investment. This mutual agreement among contracting parties can contribute to resolving disputes amicably, as opposed to the losses incurred by Iraq—as seen in the case of the Ministry of Transport and Egyptian Horus Airlines—and recourse to established legal grounds that we have outlined in this research, such as: contract termination through a judge or international arbitrator, consensual termination or explicit resolutory condition, raising the defense of non-performance, and finally,

Keywords

commercial arbitration

administrative contracts

judicial immunity

contract termination