Cameroon has in recent times resorted to long term investment contracts in order to improve the level of exploitation of her resources due to lack of expertise and capital so as to achieve economic growth. Most investment contracts are either bilateral or multilateral treaty, besides such treaty arrangements, a conventional method of concluding a foreign investment deal is by way of Specific Contractual Agreements of which Establishment Conventions are the most important. This paper critically examines establishment conventions by bringing out its and analysing the legal incidents arising therefrom. It also highlights the various types of establishment convention and probing into a key component of establishment conventions, to wit; stabilization clauses and their legal underpinnings. The importance of this paper lies in the contribution it makes in raising awareness and improving knowledge of investment rules, especially among investors, legislature, governments, students and legal practitioners. It is recommended inter alia that members of the public, especially individuals and groups likely to be affected by the any investment project be consulted, before any establishment convention is signed and that such signed establishment conventions be registered in the Official Gazette.