Government Contracts For Legal Services

A legally binding agreement that grants personal rights and imposes obligations on the parties that the law defends and upholds is known as a contract. The idea that parties have created legal rights and obligations, which are solely personal and can only be enforced by taking action against the party in default using an agreement forms the basis of general contract law.

Under the Indian Contract Act, of 1872, an agreement enforceable by law" is what is meant to be understood as a contract. According to Section 2(e) of the Act, "every promise and every set of promises, forming consideration for each other" constitutes an agreement.

Government Agreement

A 'Government Contract' is an agreement to which the Federal Government or any State Government is a party. There is no set format for contracts under the Indian Contract Act of 1872. A written or verbal contract is possible. It might be stated explicitly or inferred from the case's facts and the parties' actions.

However, things stand differently when it comes to government contracts. Article 299 of the Indian Constitution stipulates certain formalities that must be fulfilled by every contract entered into by or with the Central or State Government.

The Honourable Supreme Court ruled in the State of Bihar v. Majeed case that "A government contract is distinct from other contracts even though it is governed by the Indian Contract Act, just like other contracts." A Government Contract must adhere to the terms of Article 299 in addition to the offer, acceptance, and consideration requirements of the Indian Contract Act. Therefore, the Central or State Government's contractual liability is the same as that of any individual under the general law of contracts, subject to the formalities outlined in Article 299."

There is no difference in how contracts are interpreted between two private parties and those in which the government is one of the parties.

In terms of enforceability and interpretation, there isn't much of a difference between a contract between a private party and a government contract; nonetheless, the government is given certain advantages, such as preferential treatment under statutes of limitations.

Creation of government contracts

Article 298 of the Indian Constitution upholds the administrative authority of the Union of India and the States to engage in any kind of trade or business, to purchase, hold, and dispose of assets, as well as to make agreements. The contract may be enforced against the Union or the States if the formal procedures outlined in Article 299 are met. Therefore, for a contract made in the exercise of the Center's or a State's executive power to be enforceable, it must meet three requirements outlined in Article 299: it must explicitly state that the president or governor, as applicable, agreed;

These contracts, which were made with executive authority, are to be carried out on behalf of the Governor or the President, depending on the situation. The person or the Governor must carry out the execution, as the case may be, as instructed or authorized.

The word "executed" does not, by itself, imply that the executing parties have carried out a formal contract. The requirements of Article 299(1) would be satisfied by a written acceptance that is expressly made in the name of the President or Governor and is executed on their behalf by an authorized person. This would apply to a tender for the purchase of goods made in response to a tender notice, notification, or statement inviting tenders issued by or on behalf of the Governor or the President, depending on the situation. The correspondence may result in a legal contract if these conditions are met.

You can search for a Law firm near me and contact Lead India. Lead India provides a variety of legal services, including free legal advice and online information. Here, you can ask a legal question and talk to a lawyer