Calvo Clause

Definition of Calvo Clause

In the context of international law, the legal resource A Dictionary of Law, provides a definition of Calvo Clause : (named after the Argentine jurist Carlos Calvo (1824-1906))

A clause in a contract stating that the parties to the contract agree to rely exclusively on domestic remedies in the event of a dispute. The insertion of such a clause in a contract was an attempt, originally by Latin American countries, to eliminate diplomatic intervention should a dispute arise with a foreign national: by making such a contract the foreign national was said to have renounced the protection of his government. The clause is in effect in most cases superfluous – firstly, because diplomatic intervention belongs to the state only, and thus cannot be renounced by an individual; and secondly, because the exhaustion of local remedies is always taken to be a *condition precedent to appealing for diplomatic intervention. Since the 1930s such clauses have not been used in international disputes.

Aliens are expected to rely on local remedies over a grievance and not turn to the diplomatic services of their home country .

Aliens are expected to rely on local remedies over a grievance and not turn to the diplomatic services of their home country .