We briefly mentioned in Chapter 2 that the main source of contractual obligations under Qatari contract law arises from: (i) the contract itself; (ii) the intention of the parties at the time of forming the contract; and lastly; (iii) the relevant laws regulating contractual affairs. Here, we need to highlight the fact that obligations in general under the civil law are comprised of three tiers: (i) civil obligations; (ii) natural obligations; and (iii) moral duties. Understanding these is vital to one’s appreciation of contractual performance. Civil obligations include statutory and contractual undertakings, such as the sale of goods and services. Civil obligations also include civil-wrongdoings, which are governed by the law of delict under the CC. Civil-wrongdoings are concerned with personal injury, negligence, defamation, mental distress, etc. All civil obligations are enforceable.

This chapter examines the way in which compensation is assessed for the purposes of breaches of an investment treaty. It considers the Hull Formula of gauging compensation, which focuses on market value, and the competing Calvo Doctrine. The chapter also explores the difficulties associated with valuing assets and emerging issues in relation to claims of moral damages.