Abstract: General laws pertaining to international contracts and also traditional sanctions specified in international law such as annulment, abolition and loss compensation are not qualified enough to manage capital market transactions. Non-performance of contract by set due date which is considered a breach of contract has sanction to serve the interests of the aggrieved party. That being said, can the sanctions present in most legal systems really have performance guarantee required by contracts? By signing agreements for peaceful settlement of disputes or accepting to refer disputes to international arbitration or juridical investigation over bilateral or multilateral treaties, states create an obligation for themselves which results in international liability upon breach. These sanctions have principles that consist of common and mutual interests of countries, reciprocal action, international law regarding state rights, sanctions in UN charter and in international organizations, ethical sanctions, financial sanctions and political sanctions. In the present study, we consider evolutional trend and theoretical definition of the above terms.