PQR Construction Co. enters into a contract with the State Government for construction of a bridge. The contract was made in the name of the Governor. Examine the following with help of constitutional provisions: Whether

The Constitution of India allows the Central and the State Governments to enter into contracts. According to Article 299(1) of the Constitution of India 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. Thus, in the given situation, the contract is valid as it was made in the name of the Governor. Article 299 (2) of the Constitution of India 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. Therefore, in the given situation, the Governor is not personally liable in respect of breach of contract by the State Government.