Explain the constitutional provisions governing government contracts under the Constitution of India. Discuss the essential conditions for a valid government contract.

CS Executive · Jurisprudence, Interpretation and General Laws · PYQS · June 2026
Explain the constitutional provisions governing government contracts under the Constitution of India. Discuss the essential conditions for a valid government contract.

Answer & Explanation:

The Constitution of India allows the central and state governments to enter into contracts under Article 299 of the Constitution of India. According to its provisions a contract with the Government of the Union or state will be valid and binding only if the following conditions are followed: The contract with the Government must be made in the name of the President or the Governor, as the case may be. The contract must be executed on behalf of the President or the Governor of the State as the case may be. The word executed indicates that a contract with the Government will be valid only when it is in writing. A person duly authorized by the President or the Governor of the State, as the case may be, must execute the contract. Article 299 (2) of the Constitution makes it clear that neither the President nor the Governor shall be personally liable in respect of any contract or assurance made or executed for the purposes of the Constitution or for the purposes of any enactment relating to the Government of India. Subject to the provisions of Article 299 (1), the other provisions of the general law of contract apply even to the Government contract. Thus, Article 299 provides a constitutional framework for government contracts to ensure legality and safeguard public interest. By requiring contracts to be made in the name of the President or Governor, executed in writing, and signed by authorized persons, the Constitution ensures that government obligations arise only through proper and lawful procedures.

Topics: Constitutional Law

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