An American manufacturer has been asked to provide construction equipment to a foreign government. The contract is for a sizable amount, so the manufacturer wants to protect itself should the foreign government refuse to pay for the equipment once it has been delivered. What should the American manufacturer insist upon having if it wants to protect its right to sue the government in the event it does not pay for the goods?
a waiver of immunity
a statement of extraterritoriality
a release of sovereignty
a submission of arbitration to the ICA

This simply waives the immunity of the government and opens them up to being sued should any claim arise in which they are a party to and are purported to be liable.

The Waiver of Sovereign Immunity provides a constitutional way for people or individuals to exercise their rights against the state should the cause for the same arises.

The correct answer, therefore, is A.

This kind of clause enhances international trade between corporate persons and states of other economies.

Learn more about international trade in the link below:

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