Contracting with the U.S. Government is base on the same principles as commercial contracting and can be very profitable, but is sufficiently different from commercial contracting to require special care. Persons entering into contracts in the commercial arena are pretty much free to do anything that they can agree on. Each represents his own interests and can obligate himself in any way he wants to obtain the benefits he perceives to flow from the contract. If one or both persons are represented by agents, usually employees, commercial contracting law allows the agents to proceed to form contracts based on generally accepted notions of commercial reasonableness. In essence, the law allows each side to rely on the other's presence to establish authority to make a binding contract. Of course there are many nuances and cases covering this, but, generally, the law favors the creation of commercial contracts in order to facilitate business.