The Administrative Contract in Argentina: State Exorbitance, Regulatory Modernization, and Its Counterpoint with Brazil

Abstract

The administrative contract in Argentina stands at the intersection of state sovereignty and contractual freedom inherent to private law. Its evolution reflects structural changes in the State and its relationship with private parties, sparking debates regarding its nature and legal framework. Argentina follows a model where the Public Administration holds exorbitant prerogatives, such as the unilateral modification of contracts, to ensure the supremacy of public interest. While this feature is crucial for maintaining public services, it raises concerns about legal certainty for contractors. This study examines Argentina’s regulatory evolution, contrasting it with Brazil’s more flexible administrative contract system, which features greater decentralization and the adoption of modern public procurement mechanisms. The recently enacted "Ley Bases" introduced significant reforms impacting Argentina's public contracting framework, fueling discussions on balancing administrative efficiency with legal oversight.