The State As A Commercial Entity: Constitutional And Administrative Perspectives On Contractual Obligations
- IJLLR Journal
- 16 minutes ago
- 1 min read
Aradhana Panda, KIIT School of Law
ABSTRACT
The evolution of the modern states from a sovereign authority to an active participant in commerce presents complex legal questions regarding its contractual liabilities. When the State acts as a commercial entity, it straddles two distinct identities: a public authority governed by constitutional principles of fairness, equality, and non-artitratiness, and a contractual actor expected to operate with the efficiency and certainty of private parties. This paper explores the constitutional foundations of states contracts and examines how administrative law doctrines such as legitimate expectations, proportionality, and publish accountability reshape the contours of contractual liability. It further considers whether the rigid constitutional formalities governing government contracts align with contemporary commercial realities. By adopting a doctrinal and comparative approach, the study seeks to evaluate whether India’s framework sufficiently balances constitutional morality with the demands of modern commerce.The paper ultimately calls for a balanced framework that integrates publish law obligations with commercial efficiency, enabling the State to uphold accountability while maintaining the flexibility necessary for effective participation in economic activities.
Keywords: Public Contracts, Doctrine of Legitimate Expectation, Promissory Estoppel, Financial Accountability, Arbitrary State Action, Dual-tiered Review Mechanism.
