Anita Boros, Gyula Koi (eds): Sustainability and Law
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8.Other socio-legal, historical and general aspects
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8.2. Administrative agreement and authority contract. Aspects of sustainability and resilience (Gyula Koi)
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8.2.4. The authority contract
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8.2.4.2. Entering an authority contract

8.2.4.2. Entering an authority contract

Jegyzet elhelyezéséhez, kérjük, lépj be.!

As mentioned earlier, in the context of the conditions for concluding a contract, an authority contract is an alternative to a decision (an official/authority decision). An authority contract is concluded instead of an official/authority decision. The authority then decides in favour of the contract, and that contract must be more advantageous from the perspective of both the public interest and the client than the decision, so instead of a public obligation, the conclusion of the contract must satisfy the interests of both parties, under a balanced set of conditions.1

Jegyzet elhelyezéséhez, kérjük, lépj be.!

An authority contract is an example of co-ordination in public administration, where treating clients as equal partners is a (partial) limit to official supremacy. An authority contract simultaneously carries administrative and civil law characteristics. Although the rules of private law on obligations apply, an official contract is not a civil law contract.2

Jegyzet elhelyezéséhez, kérjük, lépj be.!

The legislator defined the taxonomic position of an authority contract by declaring it an administrative agreement (administrative contract), while weakening the rules of co-ordination. As mentioned when examining general issues, the content of an authority contract is primarily determined by the substantive law. The Ákr. also lists the elements and formal rules of an authority contract. It is also important to determine the subject matter of the contract, since in the case of a resolution, the authority alone indicates what its decision is aimed at, while in the case of a contract, consensus is also required in this area. The precise designation of the authority and the client, as well as the data necessary for the performance of the contract, is highlighted. The contract may stipulate those rights and obligations that could have been prescribed in the resolution (the subject matter of the case), including the position of the specialised authority.3

Jegyzet elhelyezéséhez, kérjük, lépj be.!

Disputes related to the performance of rights and obligations can first be resolved through negotiation. The sectoral law that makes the contract possible (or mandatory) may make the indication of other data mandatory or may prescribe conditions which must be incorporated as clauses. If the client assumes additional obligations, he must also assume additional guarantees in the event of breach of contract. The contract, like the resolution, must be communicated to the other clients.4

Jegyzet elhelyezéséhez, kérjük, lépj be.!

The declaration of submission means the client’s assumption of additional obligations in the context of the conclusion of the authority contract. This is a type of undertaking to which the client cannot otherwise be obligated by an authority resolution. In the authority contract, the client declares that he will submit to the legal consequences of the law in the event of his own future breach of contract (Article 93 paragraph (3) of the Ákr.).5

Jegyzet elhelyezéséhez, kérjük, lépj be.!

The validity of the contract depends on the requirements for validity. In addition to the mandatory content elements already mentioned, these include the consent of the examined specialist authority and the declaration of submission.6

Jegyzet elhelyezéséhez, kérjük, lépj be.!

The situation of other clients is different with regard to the regulation of the former Ket. and the current Ákr. The Ket. Article 76 paragraph (4)-(6) named three cases (possible conditions) regarding the authority contract: the position of the specialised authority, the consent of the third party, and the consent of the supervisory body. The Ákr. omitted the consent of the supervisory body, making the position of the specialised authority a mandatory element of the authority contract. Regarding the rights of the persons entering into the contract and third parties outside the authority, the Ákr. provides for the possibility of subsequent challenge instead of the prior consent of the Ket.7
1 Rothermel: (2017) op. cit. 213.
2 Forgács(2018) op. cit. 591.
3 Rothermel (2017) op. cit. 213.
4 Ibid., 214.
5 Forgács(2018) op. cit. 594.
6 Ibid., 595.
7 Ibid., 595-596.
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