Contractual Relationships Research Articles

Gift Agreement: Topical Problems of Legal Regulation

Introduction. The theoretical and practical importance of the contractual legal relationships, the specifics of their legal regulation in the present-day conditions imply a contract to be a driver of the dynamic processes of commodity exchange. Therefore, due to involvement of the increasing number of objects into the civil circulation and fostering freedom of competition, the role of a contract is also growing. At the same time, in recent times the special attention in the national Civil Law is being paid to creation of the legal construct ensuring development of the gratuitous relationships. In this regard, a gratuitous contract category and, in particular, a gift agreement category are of considerable interest. One of the objectives of today’s Civil Law is creation of the legal construct ensuring development of the above-mentioned gratuitous relationships. The Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the RF), although traditionally stipulating the certain types of gratuitous contracts, still leaves unsolved a number of issues: systematisation of gratuitous obligations, type composition, socially beneficial goals, etc. In the current legislation, the legal constructs of technical and humanitarian aid contracts are stipulated in the ambiguous way. The relationships comprising the element of gratuitousness related to charity, donation, patronage, grants, etc. need a clear legislative regulation. Meanwhile, the legal regulation of the gratuitous contacts in the current economic situation falls considerably behind the present day demands. Therefore, understanding the essence and legal nature of a gift agreement and its place in the present-day Civil Law of Russia is of particular interest. The aim of this study is to identify the most topical problems of the gift agreement legal regulation in the national legislation and difficulties in application practices thereof.Materials and Methods. The legal regulation designated for drawing up the gratuitous contracts was analysed, whereas the gift agreements among them were of particular interest. During the research, a combination of general and specific scientific methods of cognizing the legal reality were applied. The methods of analysis and synthesis, comparative legal analysis, as well as the dialectical method were used for writing the article, which made it possible to ensure the comprehensive study of the material under analysis, internal integrity of the study, as well as credibility and consistency of the research provisions.Results. It has been proved that the institution of gift-giving is in a state of constant legislative improvement. That is why, a number of provisions have been elaborated to foster the development of this institution in the national legislation.Discussion and Conclusions. The problems of the gift agreement legal regulation have been identified, including the law enforcement errors, which occupy a special place in the national judicial practices. All of the above-mentioned does not merely make the topic of the present study relevant, but also determines the main trends for improvement of the current Russian legislation referring to the gift agreement regulation.

Are franchise royalty fees related to franchisors’ support of franchisees? Evidence from the restaurant industry

Ensuring the effectiveness of the franchise system relies on establishing an optimal contractual relationship between the franchisor and the franchisee, which can be achieved through an optimal franchise fee structure. Previous theoretical models have emphasized the franchisors’ role in determining the franchise fee; however, empirical evidence has yielded inconclusive results, due to overlooking industry heterogeneity and using inadequate measures of franchisors’ effort. This study aims to empirically validate the relationship between franchisors’ efforts and franchise fees, specifically focusing on the restaurant industry based on its unique characteristics, including a relatively low average royalty rate and high financial risks. The study’s findings suggest that, unlike other industries, restaurant franchisors actively offer operational and financial support to increase the gross royalty rate. The motivation behind this support may be the insufficiency of ongoing fees in the restaurant industry to generate profits and the relatively high financial risk faced by restaurant franchisees.

Against the Spirit of the Age: The Rationale of Relational Contracts

Abstract In his long-awaited treatise on the relational theory of contracting, David Campbell provides a rigorous, systematic and consistently lucid account of mutual recognition as the basis of all volitional obligations. Fiercely negotiated economic transactions find their social expression in legally enforceable agreements that are to be followed scrupulously to the letter both by the parties and by the courts. This is because, in his view, mutual recognition, the co-operative economic enterprise, is memorialised in the legal instrument. Using the example of the emergent doctrine of good faith, this article argues that while such literalism proffers an admirably bright line for enforcement of agreements, it reduces the import and value of the relational theory of contract as an ethical and political accounting of market transactions. Literalism here is problematic not simply because of the inherent historicity and social diversity of language, but because in concepts such as good faith or reasonable interpretation, the purpose of the inscribed transaction has to be evaluated not only in terms of the plurality of the contract’s clauses, but also with a view to the overall shared intent of the exchange. For the relational theory of contract to have the impact that it merits, it needs to strengthen its account of how mutual recognition and the ethical and political dimensions of relationship best gain expression in the good-faith interpretation of the proximities manifest in agreement.

Thermal insecurity: Violence of heat and cold in the urban climate refuge

Often described as a silent killer or invisible threat, heat contributes to more fatalities than other types of climate change-exacerbated extreme weather, and the impacts are especially pronounced in racialised and segregated urban communities. In an era of climate urbanism, efforts to scientifically categorise heat and link heat to health impacts are helping to support early warning systems and urban investments in heat mitigation infrastructure, bolstering climate urbanism branding strategies. Meanwhile, relatively little research has examined lived experiences with heat-related dangers, and cold rarely features in climate health discourse even though it contributes to many more fatalities than heat. Here, I present household interviews on thermal lived experiences that inform a notion of thermal (in)security, asserting that heat and cold-related threats are forms of structural violence intertwined with housing, energy and related social determinants of health. Juxtaposing city-level climate refuge narratives with lived experiences on the ground, I find that residents’ thermal insecurities are linked to the interpersonal, contractual and bureaucratically-structured relationships that constrain adaptations to heat and cold. This research contributes to an emerging critical heat studies agenda, which aims to shift thermal discourse from its current meteorological orientation to instead centre people’s everyday adaptive thermal practices and struggles.

Regimes of dispositivity in the legal regulation of contractual relations

It has been concluded that there is a need for further differentiation of the dispositivity regimes in the regulation of contractual relations. The contractual relationship "entrepreneur - entrepreneur" requires the highest possible degree of discretionary provisions of the legislation governing these relations, but the freedom of contract in such relations may be limited based on the need to maintain public order, public morality, restrain monopoly, protect third parties from negative externalities arising from certain types of economic activity.
 In the legal regulation of contractual relations between entrepreneurs and consumers, discretion should be applied to a relatively minimal extent. In this regard, the legislator imperatively determines the terms of contracts on which the parties must reach an agreement; regulates sample (exemplary, typical) contracts; imposes pre-contractual obligations on entrepreneurs to fully inform consumers about the properties of products offered for sale; establishes general prohibitions on unfair contractual terms; provides consumers with certain guarantees regarding the conclusion, amendment and termination of contracts, etc.
 The regime of regulation of contractual relations involving individuals who are non-entrepreneurs occupies a middle position between the two above legal regimes and provides for: establishment of a relatively smaller number of legal forms of contracts that may be concluded by citizens; determination of conditions mandatory for the conclusion of contracts in the legislation; consolidation of a general prohibition on unfair contractual terms; establishment of a wider list of contracts subject to notarisation; introduction of judicial control over compliance by the parties with the requirements of the law regarding the validity of contracts, etc. Such a differentiated approach allows establishing the most equitable regime for regulating contractual relations.
 The boundaries of these legal regimes are difficult to fix in legislation in a certain stable state, and must be constantly adjusted by law enforcement practice.

The use of the materials of the research work "Documenting contractual relations between a person and the Church in the Contribution books and Synodics" in the formation of the content of the virtual museum "Feodorovskaya Sloboda"

The article considers the possibility of using the materials of the research work "Documenting the contractual relations of a person with the Church in the Contribution books and Synodics", in particular, the results of the study of the contribution book and synod of the Feodorovsky Monastery of Pereslavl-Zalessky, compiled in the XVI–XVIII centuries, to form the content of the virtual museum "Feodorovskaya Sloboda".

Contract Management and Procurement Performance of State Corporation in Kenya

To enhance their competitive edge and optimize resource utilization, it is imperative for public sector entities to adopt efficient contract management strategies. Despite demonstrating a robust methodology for contract management, the energy industry experienced a significant 25% rise in procurement prices. Consequently, the research examined the impact of contract management on the efficacy of procurement processes within State organizations, encompassing contract administration, contract dispute resolution, contract relationship management, contract monitoring, and contract evaluation. This literature review examines the impact of contract management practices on procurement performance. The study was guided by the principles of general systems theory, institutional theory, contract management theory, and transactional cost theory. The study employed a cross-sectional research design. The study sample consisted of 157 individuals employed by one of the four state corporations in Kenya, specifically in the departments of managers'/vote holders, procurement, finance & accounts, or ICT. A sample size of 113 was generated using the sample size formulas proposed by Yamane in 1967. The proportion of the given criterion in the research population is approximately reflected in the sample due to the utilization of the stratified random sampling technique. The primary data was collected by means of a questionnaire. The dependability of the instrument was assessed through pilot testing, utilizing the Cronbach Alpha Reliability Coefficient. The dependability of the research tool was determined to be 0.839, a value that falls within the acceptable range. The investigation employed both descriptive and inferential statistics. The statistical analysis employed the Pearson correlation coefficient and multiple linear regression analysis at a significance threshold of 0.05. The data analysis was conducted using version 26 of the Statistical Package for Social Sciences (SPSS). The research revealed a statistically significant positive correlation between contract administration, contract dispute resolution, contract relationship management, contract monitoring, contract evaluation, and procurement performance. The findings of this study will contribute to the existing body of knowledge on contract management and procurement effectiveness in state businesses operating within the sector. The findings of the study indicate that enhancing contract management practices will lead to enhanced procurement performance within State Corporations. The efficacy of contract management can be juxtaposed with the efficiency of procurement endeavors undertaken by governmental entities and private corporations.

The role of personal and impersonal relational contracts on partner selection and efficiency

Abstract In this article, we use a laboratory experiment to study the effects of relational contracts on market efficiency in environments with different degrees of contract enforceability and market competition. By exogenously varying the communication protocol, we create relational contracts that are more personal or impersonal. On the one hand, personal relational contracts improve efficiency by promoting trust and coordination. On the other hand, impersonal relational contracts increase efficiency by facilitating the severance of trading relationships when more productive competitors enter the market. Therefore, the overall effect on market efficiency depends on the relative importance of competition and agreement enforceability (JEL D91, L22, L14).

CONCERNING THE NATURE OF FORCE MAJEURE CIRCUMSTANCES DURING MARTIAL LAW

The article analyzes a number of provisions on the researched topic. It was assumed that force majeure or force majeure is a general basis for exemption from civil liability, both contractual and non-contractual. In the work, we considered the circumstances of liability in cases of violation of non-contractual obligations under martial law. Also, specifics of the legislative requirements for recognition of certain circumstances of force majeure have been established. The consequences of the application of such circumstances and other features were determined. And they also formulated the conclusions that even under the conditions of martial law, force majeure is not an automatic basis for exemption from the fulfilment of obligations under contractual relations and from the obligation to indemnify damages in noncontractual obligations, etc. It is noted that a comprehensive approach to the study of this problem in modern realities is practically absent and has no systematic applied research in the conditions of martial law. Issues related to force majeure are one-sided. But, more often than not, in scientific studies, either the historical aspects of the formation of the «force majeure» category are revealed, or only the characteristics of certain types of force majeure are provided, and the problem of recognizing certain life circumstances as force majeure and the consequences of these circumstances are not analyzed. There is no clear definition of the place of the category «force majeure» in the conceptual apparatus of civil law and legislation of Ukraine. To date, the specifics of force majeure (as grounds for exemption from liability for breach of obligation), etc., have not been established. There is no distinction between force majeure and related legal phenomena (accident, risk, impossibility of performance, significant change of circumstances). The purpose of the study is to analyze the concepts of «force majeure» and «insurmountable force», the signs and characteristics of such concepts and the question of the possibility of their identification, the determination of cases that are not considered force majeure in judicial practice, despite the existing extraordinary circumstances during martial law. In summary, we note that even under the conditions of martial law, force majeure is not an automatic basis for exemption from the fulfilment of obligations under contractual relations and from the obligation to compensate for damage in noncontractual obligations. The party to the contract must confirm not only the fact of the occurrence of force majeure circumstances but also their ability to influence the real possibility of fulfilling the obligation. Although the letter of the Chamber of Commerce attributes the fact of war to force majeure. However, this fact alone is not enough to establish the legality of a person’s failure to fulfil obligations due to such circumstances – the law provides for a specific method of confirming force majeure by obtaining a corresponding certificate from the Chamber of Commerce and Industry of Ukraine. In turn, in court practice (not having a prejudicial character) it is considered and evaluated on a par with all other evidence.

Trusting Computing as a Service for Blockchain Applications

Recently, blockchain and smart contracts have been one of most popular technology to establish trustworthy applications in several fields. However, due to the transparency and publicity of blockchain, the information processed by a smart contract is visible to every party in a blockchain. In light of this, this study proposes a trusted computing as a service (TCaaS) framework based on the blockchain. One of the critical component is the Execution Environment for Secured Smart Contract Computing (ESC)2 node. In the proposed framework, people can deploy (ESC)2 nodes in a blockchain. Users can upload general-purposed programs and associated parameters and discover an (ESC)2 node for execution via related smart contracts. The programs and parameters are encrypted so that only selected (ESC)2 node can decrypt the data. Then the execution environment calculates the result and returns it to the blockchain. We evaluate our concept with the ESP32 microcontroller with the ATECC508A security chip and the Quorum blockchain platform. Therefore, the study contributes to ensure faithful execution of programs without losing confidentiality.

Compliance risk management with a focus on shared values: application in a case study in Cuba

Organizations that aspire to obtain long-term results must correctly manage compliance with laws, regulations, codes, international standards and best practices related to ethics and society's expectations. This research aims to development a procedure to manage compliance risks with a focus on organizational values. The paper includes the main stages of traditional risk analysis: analysis of the organizational context, identification of obligations, evaluation and assessment of compliance risks and their treatment through action plans. As the main novelty, the authors include a tool that allows the integration of the elements of the context, with the identified obligations, their associated risks and the ethical values shared by the organization, called CORVAL map. The results of the implementation of the procedure in the process of Production of Computer Services in an cuban entity allow to identify as main risks: illicit contractual relations, lack of knowledge of the code of conduct by the workers, affectations to the prestige of the organization and high rates of electric energy consumption, identifying the shared value Responsibility and its associated behavior, as the most influential principle in the mitigation of the risks of compliance of the process.

Legal aspects of mining in Ukraine: European integration vector

Purpose is analysis of the current legal tools and acts in the field of mining in the European Union to identify and substantiate their potential consideration while reforming Ukrainian legislation in the context of European integration, energy transformation, and postwar recovery. Methods. The study is a sequential analysis of the European sources for legal support of mining. The analysis is aimed at determination of tendencies, their necessity and implementation expediency while reforming the national legislation on subsoil as well as mining legislation. Findings. Elements of the current legal mechanism from the viewpoint of subsoil use in the EU have been reviewed. Moreover, they have been systemized according to following types: tools and institutions; messages (communications) and reports; and directives, instructions, procedural rules, and the EU decisions. Reformation tendencies of legal mining support have been substantiated. The tendencies depend upon the fact that Ukraine selected the Eurointegration vector as well as upon the necessity to decarbonize power sector and postwar recovery specificity. The regulations, relevant for reforming provisions of mining legislation of the certain EU member states required for legal mining support in the field of investment, institutional, permissive, and contractual relations, have been defined. Originality is substantiation of expedient use of sustainable European practices in the legal regulation of Ukrainian mining sector based upon the achievement of symbiosis of preserving the national interests as well as fulfillment of integration obligations in the process of energy transformation and postwar recovery. Practical implications are expedient implementation of the findings in the process of legislative activities; law enforcement actions by officers of the authorized state bodies and economic entities in the field of mining; and research connected with further development of mining law theory; and academic activities related to teaching of topics concerning the current legal aspects of mining.

The Role of Client-Contractor Relationship in Solving Financing Failure in Construction Project

The construction industry supply chain emphasizes the importance of the client and contractor relationship. This research examines the process of evaluating the Contractor's capability in selecting a contractor. This study also reviews how the project owner solves the problem during work. This research uses a qualitative and case study approach. The study is based on library research, the Delphi method, and content analysis. The results of the study show: (a) in building a relationship, PT XYZ and the Contractor has declared about its business legal documents to the ABC institution; (b) However, in building a relationship, PT XYZ was not transparent about its financial capabilities and business ownership structure; (c) PT XYZ's failure to finance the project has disrupted the relationship of the two parties; (d) PT XYZ (Contractor) has declared about its financial failure; (d) the ABC institution overcomes it with a relationship beyond contract model, which is first to bail out the Contractor's finances so that PT XYZ can still carry out the construction service contract to completion. The ABC institution decided to bail out PT.XYZ is primarily based on the values practiced by the ABC institution, known as LIGHT, which means Love, Integrity, Growth, Humanity, and Trust.

Municipal Lex Contractus – Effectiveness of the Terms and Conditions for the Sale of Real Estate from the Municipal Real Estate Stock in Shaping the Real Estate Development Process

The municipality, acting in the sphere of dominium, independently decides on the use and manner of use of individual assets. However, the trade in real estate constituting the subject of ownership of this local self-government unit requires compliance with a number of legal regulations, the most significant of which is the Act of August 21, 1997 on Real Estate Management (consolidated text Journal of Laws of 2021 item 1899, as amended). However, none of the provisions of the law refers explicitly to the freedom and limits of shaping by the municipality of the terms and conditions for the disposal of real estate, which in the case of a non-tender route are determined in negotiations conducted with the buyer, while in the case of a tender they are announced in the contract notice. The content established in this manner is then included in the protocol, which forms the basis for the conclusion of the contract, and thus directly affects the shape of the contractual legal relationship. The purpose of the publication will therefore firstly be to set out the legal framework for the municipality’s determination towards the future buyer of the real estate of the specific manner, in which the investment is to be carried out, as well as to answer the question as to the real possibility of the former owner (municipality) co-shaping the investment proces on the sold real estate after the buyer has signed the contract. The importance of the issue under consideration is expressed in the decision as to whether the creation by the municipality of its own lex contractus by means of the terms and conditions for the disposal of the real estate relating to specific deadlines for the commencement and completion of the investment process, the manner of use and development of the real estate, as well as the liability of the new owner towards the previous owner for their violation, is legally effective and can actually be enforced by the municipality.

Workplace conflicts and knowledge hiding: Mediating role of relational psychological contract breach

This study explains workplace conflicts (interpersonal and task-related) as antecedents of knowledge-hiding behaviors. Moreover, a relational psychological contract breach is a mediator between workplace conflicts and knowledge-hiding behavior. For empirical evidence, data were collected from research and development institutions in Pakistan. The results confirm the significant association between conflicts and knowledge-hiding behaviors and the mediating role of relational psychological contract breach.The objective of this study is to investigate the impact of workplace conflicts (interpersonal conflict and task-related conflict) on knowledge-hiding behaviors (evasive hiding, playing dumb, and rationalized hiding). Besides, a relational psychological contract breach is used as a mediator between workplace conflicts and knowledge-hiding behaviors. By using a simple random sampling technique and time lag strategy, the data were collected from 408 employees working in research and development institutions in Pakistan. For analyses, this study employed partial least squares structural equation modeling statistical technique by using SmartPls-3 software. The results of the study confirm the significant relationship between workplace conflicts and knowledge-hiding behaviors. Relational psychological contract breach also significantly mediates the relationship between conflicts and knowledge-hiding behaviors. However, this study found an insignificant association between interpersonal conflict and evasive knowledge hiding.

Interaction of municipal authority with local state administrations problem issues

The article is devoted to issues of interaction between municipal authorities and local state administrations, as they are relevant in view of the European integration progress of modern Ukraine.The work draws attention to the fact that the reform of local self-government and territorial organization of power brought a number of positive changes to this sphere, but did not eliminate all problematic issues, in particular, in the area of interaction of local authorities.
 In the course of the study, it was established that such relationships are necessary for the proper implementation of the tasks of the municipal authorities, which are mediated by the needs of the local population.The analysis of the regulatory material revealed that local state administrations in the relevant territory ensure interaction with local self-government bodies – this is one of their main tasks. Such relations can be based on the principles of cooperation. They are formed within the municipal formations of the basic level with the aim of solving the issues of economic, social and cultural development of the respective territories, strengthening the material and financial basis of local self-government. Attention is drawn to the fact that the concept of “interaction of municipal authorities with local state administrations” has not yet been legalized, there are no clarifications regarding such interaction, as well as undefined areas or issues for the resolution of which it takes place. It has been established that local self-government bodies are endowed with a fairly wide range of powers (self-governing and delegated) in various areas, in which the powers of local state administrations are also exercised. This situation requires an optimal distribution of powers between these local authorities.It was found that the current legislation in this area does not meet the parameters of the Concept of reforming local self-government and territorial organization of power in Ukraine, which delimits the powers of local self-government bodies at the basic level (villages, towns, cities), district and regional levels, as well as structural subdivisions territorial bodies of central executive bodies at the basic level. The problem of interaction within the delegated powers of local self-government bodies is the lack of an appropriate mechanism for ensuring their implementation. It is emphasized that the decentralization processes and the mechanism of delegation should be based on the principle of subsidiarity, and the interaction of municipal authorities and local administrations should be based on the wide use of contractual relations to implement the needs of the local population.

Altruism as an anthropological-biological determinant of the contractual regulation of relations

The application of the anthropological and sociological research approach, according to which the patterns of emergence, existence and development of law are determined exclusively by the social dimension of human existence, actually leaves out of consideration the biological nature of the creator of legal norms. And this nature, as confirmed by the results of numerous studies of the behaviour of various social animals, significantly affects the social existence of the latter. Therefore, for the sake of comprehensive knowledge of these regularities, an anthropological and biological approach (based on the recognition of the evolutionary nature of humans and the conditioning of the state and law by certain biological properties of the human individual) should also be applied. This will contribute to interdisciplinary research and the development of legal science based on them.The article is devoted to individual manifestations of human biological nature, namely altruism as an anthropological-biological determinant of contractual regulation of social relations. The concepts and types of this determinant are clarified, and the signs of kin and reciprocal altruism are characterized. It is substantiated that the latter contributes to the spread of social ties and the establishment of norms of physical behaviour. The dependence between the manifestation of altruistic behaviour, the emergence of contractual relations and their regulation in both animals and humans has been demonstrated. A parallel is made with the psychological theory of law of L. Petrażyсki regarding the justification of the emergence of legal relations, in particular, in the field of private contracts. It was concluded that imperative-attributive emotions in the concept of this theorist are a manifestation of mutual altruism. It is noted that altruistic behaviour is aimed at the creating and recognising of protonorms, in particular, the emergence of duties and corresponding rights of a contractual nature. Therefore, the study of individual manifestations of altruism in the environments of animals and people can be useful for deepening the knowledge of the origins of legal regulation.

MUOMALA LAYOQATIDAGI NUQSONLAR VA UNI ANIQLASHDAGI MUAMMOLAR

Determining whether or not there is a defect in the capacity of the people to negotiate is the basis for determining the validity or invalidity of the agreements or contracts being concluded. The large number of factors affecting the will and intellectual state of the participants in civil relations is the reason that contractual and legal relations do not proceed with justice. Due to the violation of the state of the will, people cannot control their behavior, and changes in the intellectual state lead to the inability to understand the actions. In the modern world, there are various means that cause impairment of the ability to deal, and some of them are not regulated in our legislation. This article analyzes the possibilities of using technological methods to determine the state of the human psyche at the conclusion of a deal. Also, in the article, the different views of scientists on the factors that affect the human mind and cause the appearance of a defect in the ability to deal with them were studied, and the author gave the necessary opinions.

Financial and Banking Education of Consumers in the Context of Sustainable Development Society

The paper addresses the consumer’s behaviour toward banking services, outlining the need to deepen and complete a financial-banking education. The purpose of the study is to identify the opinions of consumers of banking services regarding the collaboration relationship with financial-banking institutions from the perspective of financial education and sustainable development. In this regard, the authors carried out an analysis of the content of loan agreements using: the method of evaluation grids—a specific method of diagnostic analysis supplemented with in-depth interview—a qualitative research method. Our study highlights the role of financial-banking institutions in the sustainable development of social and economic life, marking the need for primary financial education for effective consumer-bank collaboration. The research results reflect the need to develop contractual relationships based on transparency, fairness, and better financial information and education of consumers. The obtained results are useful for decision-makers in banking institutions to develop lending policies according to customer expectations and for authorities to shape various social development policies.

Public procurement in Russia: concept and content

Based on the analysis of foreign and national legal acts, scientific works and research of domestic and foreign scientists, the article substantiates the relevance of the concept “public procurement” and reveals its content. The outcome of the research on public procurement as a system of legal relations allows the author to verbalize its definition. Public procurement should be understood as a system of legal relations where one party is an authorized representative of public authority who purchases goods, works, and/or services at the expense of the relevant budget in order to realize public interest. The characteristic features of public procurement are highlighted, and the most significant functions of public procurement are substantiated, including social, regulatory, reproductive, innovative, stimulating, and cost optimization. The author offers classification of the main subjects of public procurement, involving authorized representatives of public authorities (entities authorized to regulate and control public procurement, to centralize and conduct joint bidding, as well as all customers), business entities (suppliers, contractors) and derivative entities (banks and credit organizations, electronic trading platforms, specialized organizations). It is emphasized that in order to increase the efficiency of budget spending and optimize the financial support of public procurement, a number of derivative entities may be abolished. The article sustains that legal relations in public procurement are subject to regulation by the norms of financial, administrative, and civil law. It notes that legal relations in public procurement regulated by the norms of civil law (contractual legal relations) arise exclusively after the relations regulated by the norms of public law. It outlines the legal characteristic of the revealed legal relations and justifies the necessity of considering the priority of the norms of public law.