How to define and classify administration has long been perplexing the theory and practice. The same issues also trouble and affect State Compensation Law. Practical views often have inference that administration grant belongs to public power on administration. Such a view often causes misunderstanding that administration grant is equal to public power on administration, in addition, it results the issues in the application of State Compensation Law when involving "administration private law" in private economic administration. This article endeavor to clarify the relative issues from the viewpoints of theory and practice, and concludes that in Taiwan, we adopt binary separation of public and private, also, public authority constitutes part of State Compensation Law. Unless the administrative private law event "convert" into public power administration, it is then applicable to State Compensation Law. In the regard of administration grant, it is not relevant to the approval of State Compensation Law. Thus, it shall be a misunderstanding in the inference from practical views.