Administrative Contracts

Abstract

In recent years there has been a constant increase in the number and significance of administrative contracts, that is, contracts to which the public administration is a party. Contracts between private individuals and government are a daily occurrence. Such contracts are essential to the performance of the executive's various actions and functions, and apart from their practical importance, they raise theoretical questions.From a philosophical point of view, an administrative contract can be considered as a contract in which a person is party to a contract with himself, since the State embodies the entire community of its citizens.The subject of administrative contracts has so far not received sufficient legal-academic attention. Discussion of this issue becomes more and more essential with the rapid increase of administrative contracts regulating complex transactions.Another spreading phenomenon which is closely linked to administrative contracts is administrative promises (when such promises do not crystalize into administrative contracts).The first problem arising in connection with administrative contracts and promises is the question of the substantive law to be applied. The problem of the substantive law gives rise to secondary problems as to legal remedies and jurisdiction.It appears that administrative contracts are to be governed by one of three systems of rules: contract law, administrative law or a system which combines elements of the two systems.However, no solution is clear-cut. The applcation of the law of contract causes a confrontation between the fundamental principles of the law of contract, mainly the principles of freedom of contract and sanctity of contract, and the needs of the administration, the powers of the sovereign and its duties.