Calvo Clause Law and Legal Definition

Calvo clause is a clause or a provision in a contract by which an alien waives his/her right to invoke diplomatic immunity. Such clauses are ordinarily seen in agreements between national government and an alien. Generally, international investment agreements include such clauses pursuant to which foreign investors waive their right to be protected by their national laws and accept the jurisdiction of the courts of the host country where the investment is located or made.

Calvo clause also refers to a doctrine of Mexican law which holds that judgments rendered by foreign courts purporting to affect real property in Mexico are unenforceable as against the public interest of Mexico, and contrary to the exclusive sovereignty of Mexico over its realty. [Diaz-Barba v. Kismet Acquisition, LLC, 2010 U.S. Dist. LEXIS 50320 (D. Cal. 2010)].