Part I

Proceedings in United Kingdom by or against other States

Exceptions from immunity

Commercial transactions and contracts to be performed in United Kingdom.
3
1
A State is not immune as respects proceedings relating to—
a
a commercial transaction entered into by the State; or
b
an obligation of the State which by virtue of a contract (whether a commercial transaction or not) falls to be performed wholly or partly in the United Kingdom.
2
This section does not apply if the parties to the dispute are States or have otherwise agreed in writing; and subsection (1)(b) above does not apply if the contract (not being a commercial transaction) was made in the territory of the State concerned and the obligation in question is governed by its administrative law.
3
In this section “commercial transaction” means—
a
any contract for the supply of goods or services;
b
any loan or other transaction for the provision of finance and any guarantee or indemnity in respect of any such transaction or of any other financial obligation; and
c
any other transaction or activity (whether of a commercial, industrial, financial, professional or other similar character) into which a State enters or in which it engages otherwise than in the exercise of sovereign authority;
but neither paragraph of subsection (1) above applies to a contract of employment between a State and an individual.
Pt. I (ss. 1-17) applied (7.12.1993) by S.I. 1993/2809, art.2.