Disputes, commercial contracts
For several decades, MBI, a multi-national corporation, has manufactured military tanks at several of its branches around the world. One of those branches in Country C sells its tanks both to the army of Country C and the army of Country D.
MBI does not have a branch in Country D. After delivering several hundred tanks to Country D, that country has refused to pay for them, complaining that they were defective. (It has nonetheless deployed them as its frontline battle tanks.)
MBI sued Country D in the courts of Country D. The courts of Country D dismissed a breach of contract action brought by the MBI several months ago. The rationale for the Court's decision is that that the army is immune from suit in its courts.
1. Can MBI bring suit in a Country C court?
2. Is legally and ethically prudent for MBI to do so?
The crux of this problem lies in the contract. The contract would most certainly provide for a site of the courts that have legal authority to resolve any dispute.
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