Administrative contract
On 08.09.2016, the National Assembly adopted on second reading the Act for Amendment and Supplement to the Administrative Procedure Code, which was promulgated on 20.09.2016. The Act establishes and regulates the administrative contract.
Definition of an administrative contract
In a proceeding before administrative authorities, the parties may conclude an administrative contract on issues of significant public interest when it is provided by law. The administrative contract is a written agreement between an administrative body and individuals or organizations. The administrative contract is concluded in writing and contains: parties, a subject and content, a date of conclusion and signatures of the parties, unless otherwise provided for in a special law.
Rules for conclusion of an administrative contract
The proceeding for conclusion of an administrative contract is initiated by the competent body or at the request of an individual or an organization and in the cases provided for in the law - by the prosecutor, the ombudsman, the superior or another state body.
If for the conclusion of an administrative contract is required in a special law the prior consent or opinion of another administrative body, the contract takes effect after the respective administrative body has given consent or opinion in a statutory form.
Effect of the administrative contract
An administrative contract that affects rights or legal interests of a third party takes effect for him after the written consent of that person. In defense of the public interest the administrative body may provide a clause for admission of preliminary execution of the contract. The admitted preliminary execution may be appealed through the administrative body before court. In case that the contract does not contain clauses for preliminary execution, any party may request the court such execution under the conditions in which it may be admitted by the administrative body.
Amendment and termination of the administrative contract
If after the conclusion of the contract one of the parties is not able to perform it due to a significant change of the circumstances in which the contract has been concluded, the party may request an amendment of the clauses of the contract in accordance with the changed circumstances. When this is not possible or in case of refusal of the other party the contract may be terminated. The administrative body may unilaterally by written notice terminate the contract in order to prevent or eliminate severe consequences for the public interest.
Nullity of the administrative contract
The administrative contract is void in case of any of the following grounds:
1. lack of competence;
2. non-compliance with the established form;
3. material breach of administrative procedure rules;
4. conflict with provisions of substantive law;
5. non-conformity with the purpose of the law.
When nullity affects only a part of the contract which is not material to the public interest, the contract takes effect, if it can be assumed that it would be concluded even without its null part.
Procedure for contestation of the administrative contract
The administrative contract may be contested before court under the procedure for contestation of individual administrative acts. The contestation of the contract does not stop its enforcement.
