president or governor.
The term “executed” means that government contracts have to be in writing. Unlike contracts between private parties, government contracts cannot be oral or implied agreements. They must be in writing and executed by a person authorized by the president or governor.
While most government contracts are executed through formal documents, there have been cases where correspondence through letters or written offers and acceptance have been sufficient to constitute a government contract.
If a contract is executed by a person not authorized for the purpose, it is void and not a contract at all. Article 299 has been made to safeguard the government from unauthorized contracts. It is important to note that article 299 is technical, strict, and mandatory.
It is only when the provisions of article 299 are strictly complied with that a legal relationship of contract is created with the government. If the requirements laid down under article 299 are not complied with, no suit can be brought against the government, whether it is the union or state government. Similarly, if a contract does not comply with the provisions of article 299, the government will not be able to enforce it.
Although government contracts are made in the name of the president or governor, these individuals are not personally liable in respect of any contract. Similarly, the persons authorized to execute the contracts are also not personally liable since they are acting on behalf of the government and not in their personal capacity.
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