What are the key differences between public and private contracts?

The distinction between public and private contracts is crucial in understanding how they operate within the legal framework. Public contracts involve government entities, meaning they are agreements made by public sector organizations, such as state or local governments. These contracts are governed by public procurement laws and regulations designed to ensure transparency, accountability, and fairness in the use of public funds. This legal structure mandates that public contracts adhere to specific procedures, including competitive bidding, allowing for monitoring and oversight to prevent corruption and mismanagement.

In contrast, private contracts are agreements between private parties and do not usually require the same level of formality or regulatory oversight as public contracts. The differences in the governance of public versus private contracts highlight the importance of public interest and taxpayer funds in the public sector, making option C the most accurate representation of how these two types of contracts function.