Introduction: the modern system of contractual relations is full of terminology which has not yet been clearly defined. The terms “public tenders” and “procurement”, as well as other terms related to the contractual system, often lack a sound definition and features distinguishing them from each other. In addition, the Russian Federation legislation does not provide an exhaustive definition of these notions. Studies of these definitions are very diverse and far from unity, which may indicate that the system of state and municipal procurement in the Russian Federation is an integrated institution requiring a clear terminological apparatus, recognition of its legal nature, establishing specificity of the source base. Aims: study of the definitions used in the system of contractual relations for their legal consolidation in regulatory acts, as well as highlighting those terms crucial for the development of the state and municipal procurement system. Methods: comparative-legal analysis of legislation, theoretical research, systems analysis, deductive-inductive method. Results: as a result of the research, the public procurement can be defined as follows: the process of competitive and non-competitive procurement (as defined by law) procedures by state and municipal customers in the interests of society and the state. In addition, the term “state and municipal need” should be defined. The definition of “need” can be reached through the concepts of public need and state (municipal) need. At the same time, public need is the need of society for goods, work, services, which is provided by customers (including state and municipal) at the expense of the budget system of the Russian Federation. State or municipal need is the need of state and municipal customers for the goods, works, services necessary to carry out their own activities. Conclusion: on the basis of a comparative study the author’s definitions of terms used in the contractual relations system have been proposed and problems identified. The solution of the problems will influence more accurate definition of the legal nature of public procurement and, accordingly, lead to equivalence of judicial and administrative practices in the system of contractual relations.
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