The executive of the State Government entered into a contract with suppliers for supply of materials for the construction of Houses for the poor. Due to urgency, a lower division clerk signed the contract without the knowledge of his superiors. Can the suppliers claim the amount from the Government for the goods supplied?
As per Article 299, a contract is binding on the Government of India, if the following three conditions are fulfilled that:
- It must be expressed to be made by the President or by the Governor of the State.
- It must be extended on behalf of the President or the Governor and,
- Its execution must be by an authorized person and in an authorized manner by the President or Governor.
Failure to comply with these conditions nullifies the contract and renders in void and unenforceable.