Legal Guarantees for Contractors with Administrative Authorities in Light of Political and Economic Instability

Abstract

This research addresses how to protect the rights of investors in their dealings with administrative authorities (the contracting party), whether in construction and operation contracts, supply contracts, or lease agreements. These authorities are considered the stronger party in the contractual relationship due to their superior legal position, especially when exceptional circumstances arise—such as force majeure events, social and political unrest, pandemics, or revolutions—which may significantly affect the rights of the contracting investor.

Accordingly, this study seeks to examine the issue of balance between the “contracting investor” and the “administrative authority,” aiming to achieve the investor’s private interest without overriding the public interest of the state, and vice versa. This is particularly important in times of crises or disasters that may disrupt the execution of administrative contracts.

The research further attempts to ensure the protection of the weaker party in the administrative contract—the investor—especially during economic or political crises that affect the proper performance of the contract.

The goal is maintaining a fair balance between both parties, ensuring the proper execution of the administrative contract, and achieving the intended public interest without causing injustice or harm to the contracting investor.