Government authorities are legal entities governed by public law that conclude contracts, just as legal entities constituted under private law do. Government contracts deviate from regular contracts in that they often contain agreements on the wielding of powers under public law.
Specific regulations for government authorities
Unlike legal entities constituted under private law, legal
entities governed by public law are bound by regulations that
specifically apply to the government. Examples of these include the
regulations for providing money to third parties (e.g. subsidies,
loans and security deposits), state aid and tendering, and the
general principles of proper administration. These principles
include the principle of equality, the general duty of care, and
the principle of proportionality.
The government's social responsibility also helps to give substance
to the principle of reasonableness and fairness. This principle
dominates the pre-contractual stage and influences the contractual
stage as well.
Specialised expertise
In view of the specific nature of contracts with the government, a
number of experts at AKD have specialised in drawing up and
assessing government contracts, and in conducting legal proceedings
in this area.
