Public Contracts

Synonyms

Administrative contracts; Government contracts; Public law contracts; Public procurement; State contracts

Definitions

A contract is a legally enforceable voluntary agreement entered into by two parties with the intention of creating rights and duties, i.e., obligations. A public contract is a binding agreement concluded between an entity that forms part of the state and a private contractor in terms of which a public function is facilitated.

Introduction

Public administration participates in the marketplace in ways that are very similar to other private commercial actors (e.g., consumers or companies). For example, administrations acquire and dispose of goods and services, enter into financial arrangements, and conclude partnerships. In all these transactions, the administration utilizes the primary legal mechanism to create commercial relationships, namely, the contract. However, although public administration may appear equivalent to any other (powerful) market participant...