What does the commercial activity exception to the doctrine

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Reference no: EM133451291

Case Study: Nigeria, an African nation, while in the midst of a boom period due to oil exports, entered into $1 billion of contracts with companies in various countries to purchase huge quantities of Portland cement. Nigeria was going to use the cement to build and improve the country's infrastructure. Several of the contracts were with American companies, including Texas Trading & Milling Corporation (Texas Trading). Nigeria substantially overbought cement, and the country's docks and harbors became clogged with ships waiting to unload. Unable to accept delivery of the cement it had bought, Nigeria repudiated many of its contracts, including the one with Texas Trading. When Texas Trading sued Nigeria in U.S. District Court to recover damages for breach of contract, Nigeria asserted in defense that the doctrine of sovereign immunity protected it from liability.

Questions:

What does the commercial activity exception to the doctrine of sovereign immunity provide?
Did Nigeria act ethically in trying to avoid the contract obligations it owed to Texas Trading & Milling Corporation?
Does the doctrine of sovereign immunity protect Nigeria from liability? Why or why not?

Reference no: EM133451291

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