Guide
How are disputes resolved in a Foreign Military Sale?
By consultation between the two governments. Section 7 of the standard terms makes the subject to U.S. law and regulation, including U.S. procurement law, and commits the U.S. Government and the purchaser to settle any disagreement between themselves rather than refer it to an international tribunal or a third party.
How are disputes resolved in a Foreign Military Sale?
7.1 U.S. law governs the LOA
7.1 This is subject to U.S. law and regulation, including U.S. procurement law.
Section 7 explains how disputes are resolved.
Section 7.1 makes the subject to U.S. law and regulation, including U.S. procurement law.
7.2 Consultation, not a tribunal
7.2 The and the Purchaser agree to resolve any disagreement regarding this by consultations between the and the Purchaser and not to refer any such disagreement to any international tribunal or third party for settlement.
Section 7.2 provides for the resolution of case disagreements by a bilateral consultative process. The international partner agrees not to seek redress from any international tribunal such as the International Court of Justice or a third party.
References
SAMM
- SAMM C5.6.5.4.1 — Standard Terms and Conditions and Letter of Offer and Acceptance Information.
Related
Letter of Offer and Acceptance (LOA)
The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.
When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.
When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.
SAMM Glossary, as of 12 September 2026
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LOA — Letter of Offer and Acceptance
SAMM Acronyms, as of 12 September 2026