The Unilateral Modification Privilege in Administrative Contracts and Its Limits in Light of Protecting the Contractor’s Legal Positions

Abstract

This research examines the authority of the administration to unilaterally modify administrative contracts, as one of the most significant manifestations of public authority privileges granted to the administration to ensure the proper functioning and continuity of public services. The study aims to clarify the legal basis of this authority, the limitations imposed upon it, the scope of its exercise, and the rights of the contracting party in confronting it, particularly with regard to maintaining the financial balance of the contract. The research begins by explaining the legal foundation of the administration’s power of modification, which is rooted in the concept of public authority that grants the administration exceptional privileges not available to private parties in civil contracts, in pursuit of the public interest. This foundation is also linked to the requirements of public service, which necessitate administrative flexibility in modifying contractual terms to adapt to changing circumstances and to ensure the regular and continuous provision of public services.

The study then addresses the legal restrictions governing the administration’s power to modify the contract. This authority is not absolute; rather, any modification must be justified by circumstances arising after the conclusion of the contract and must be limited to provisions related to the operation of the public service, without affecting the essence or nature of the contract. Furthermore, the research explores the scope of the administration’s modification authority, demonstrating that it may extend to altering the extent of the contractor’s obligations, the methods and means of execution, or the duration of performance, provided such modifications serve the public interest and do not constitute an abuse of power.

Finally, the research discusses the consequences resulting from the exercise of this authority, emphasizing the necessity of observing legal safeguards designed to protect the contractor. Chief among these safeguards is maintaining the financial equilibrium of the contract by compensating the contractor for additional burdens arising from the modification, thereby ensuring contractual fairness and transactional stability.

The study concludes that the administration’s authority to unilaterally modify administrative contracts is an essential legal instrument for achieving the public interest. However, it remains subject to legal guarantees intended to protect the contractor’s rights and to maintain a balance between administrative privileges and principles of justice.