Common use of Compensation for non Clause in Contracts

Compensation for non. execution of Guarantees Granted to the Investor 1. The investor shall be entitled to compensation for the damage was sustained for the actions taken by one of the Contracting Parties or one of its public or local authorities or its institutions and which are: a) The rights and guarantees provided for in this Convention for the benefit of the investor. b) breach of any international obligations and commitments of the Contracting Party arising out of this Convention for the benefit of the investor in the territory of the other Contracting Party or failure to comply with what was required to be performed, whether voluntarily or recklessly. 2. The non-performance of an enforceable judgement directly related to the investment. 3. The value of the compensation shall be equivalent to the prejudice suffered by the investor according to the nature of the prejudice and its degree. 4. Compensation shall be in cash in the event that it is impossible to reconstitute the investment as it was before the occurrence of the damage. 5. Cash compensation shall be estimated within three (3) months from the date of the loss and shall be paid within six (6) months from the date of the agreement on the amount of compensation.