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In which of the following cases, the rule that “there is no distinction between ‘de facto’ and ‘de jure’ recognition for the purpose of giving effect
Question

In which of the following cases, the rule that “there is no distinction between ‘de facto’ and ‘de jure’ recognition for the purpose of giving effect to the internal acts of the recognised authority” was not applied?

A.

Bank of Ethiopia v. National Bank of Egypt

B.

Luther v. Sagor

C.

Bank of China v. Wells Fargo Bank & Union Trust

D.

The Arantzazu Mendi case

Correct option is C


In Bank of China v. Wells Fargo Bank & Union Trust, the U.S. court did not apply the principle that there is no distinction between de facto and de jure recognition for the purpose of validating internal acts. The court held that recognition by the United States was essential to determine the legal status of a foreign government. This differed from earlier rulings, such as in Luther v. Sagor, where internal acts of a de facto government were recognized.

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