State the effects of a valid contract with Government.

As soon as the contract is executed with the Government in accordance with Article 299 of the Constitution of India, the whole law of contract as contained in the Indian Contract Act, 1872 comes into operation. In India, the remedy for the breach of a contract with Government is simply a suit for damages. Further, writ of mandamus can be issued for the enforcement of contractual obligations (Gujarat State Financial Corporation v. Lotus Hotels, 1983 3 SCC 379).