Aliens, contracts with

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Updated: Aug 20, 2021

Distinguish between alien friends and alien enemies. Alien country or in a country occupied by a hostile country or in a country occupied by a hostile power (the nationality of the alien is not relevant). The subject of a foreign power would also be an enemy if resident here at the outbreak of hostilities with his country. Alien friends may normally contract in the ordinary manner. Resident enemies cannot enter into contracts during hostihties; nor can non-resident enemies without permission from the proper authorities. Contracts in force at the time of hostilities are not cancelled unless this would be in the public interest, but they are unenforceable until the cessation of hostilities, when rights are reinstated. Sovereigns and official representatives of foreign states are immune from liability on contracts unless they choose otherwise. However, they may bring an action themselves. The protection extends to diplomatic staff and certain other foreign nationals but normally only while they are acting in an official capacity.

Reference: The Penguin Business Dictionary, 3rd edt.



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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.