INTRODUCTION
The use of economic sanctions – governmental restrictions on the economic activity of other nations, their officials, and often their general population – appears to be a prevalent feature of contemporary international politics. Unavoidably, sanctions may also have a significant effect on a party’s rights and obligations. This article argues that a contracting party, particularly when operating in a transnational context, cannot rest upon the assumption that the imposition of sanctions is an extraordinary and unusual event that is unlikely to have an impact upon the party’s rights and obligations.
Part I offers some historical context for the dramatic changes in economic sanctions practice in the contemporary business environment. Part II considers the prevalence of economic sanctions programs in the current transnational business sector and argues that this feature requires attention in the negotiation and formation of contracts, particularly in light of the heightened risks that may be associated with transnational transactions. Part III considers whether traditional contract doctrines like impracticability might offer any solace to parties involved in transnational business and argues that the obvious prevalence of sanctions in international law and policy may limit the utility of such doctrines. As a result, Part IV concludes by urging a proactive approach to the management of risks associated with economic sanctions …
Michael P Malloy, Contracts and Economic Sanctions, 53 University of the Pacific Law Review 617 (2022).
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