The Status and Legal Nature of Public Authority Prerogatives in the Formation and Execution of Administrative Contracts

Administrative contracts are among the main instruments through which contemporary public law systems ensure the efficient delivery of public services. The State, in order to secure the public interest and based on the powers derived from public authority, has the possibility (is entitled) to structure administrative contracts with features that distinguish them from private-law agreements. These distinctive features, commonly referred to as "public authority prerogatives," play a decisive role in defining the legal relationship between the administrative authority and the contracting party. Despite their significance, the legal nature of these prerogatives—and whether they should be analyzed on the basis of "mandatory rule" (ḥukm) or "right" (ḥaqq) vested in the administrative authority—remains a subject of debate and ambiguity. Adopting a descriptive-analytical approach and relying on library-based sources, the present study seeks to elucidate the substantive foundation of public authority prerogatives in administrative contracts under Iranian law. It raises the question of whether the nature of these prerogatives is closer to that of a mandatory rule or a right. The findings indicate that Iranian law lacks an explicit and coherent explanation in this regard. Nevertheless, an examination of existing practices and underlying legal principles confirms the predominance of a "mandatory-rule-based approach" over a "right-based approach" in the administrative authority's exercise of public authority prerogatives in administrative contracts.