ABSTRACT
In English law, the most usual way a private individual can create a legally binding obligation with respect to another private individual is through the common law mechanism of a contract. As local planning authorities are the creatures of statute, they need statutory authority to enter into contracts. Section 111 of the Local Government Act 1972 provides a general power to enter into contracts which are calculated to facilitate or are conducive to the discharge of any of their functions. Moreover there are several specific statutory powers which enable local authorities to enter into agreements relating to the use and development of land. While a contract is primarily a private law mechanism, when used by public authorities, it is subject to the rules of public law as well as private law; at least where there is a recognizable public law element and the authority is not acting in a purely commercial or private context.
