Admissibility of the public-law contract

(1) A legal relationship in the field of public law may be established, altered or set aside by contract (public-law contract), insofar as legal provisions do not preclude this. In particular, the authority may, instead of issuing an administrative act, conclude a public-law contract with the person to whom it would otherwise address the administrative act.
(2) A public-law contract concerning social benefits may be concluded only insofar as the rendering of the benefits lies in the discretion of the provider of benefits.