Question

Which of the statement is not true with respect to contractual liability of government?

• A. Art 299 governs the contractual liability of the government
• B. Every contract must be expressed to be made by the President or the Governor
• C. It must be a formal written contract executed by a duly authorized person
• D. None of the above

Hint:

The requirements of Article 299 are absolute.
If a contract fails to comply with even one of these conditions (writing, made in the name of the President/Governor, executed by an authorized person), it is completely void and cannot even be ratified later.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks us to identify the false statement regarding the contractual liability of the government under the Indian Constitution.

Step 2: Key Legal Principles and Approach:
The constitutional provisions regarding government contracts are laid down in Article 299 of the Constitution of India.
We must analyze the strict requirements of Article 299 and check whether the statements (A), (B), and (C) are true or false.

Step 3: Detailed Explanation:

• Analyzing Statement (A): "Art 299 governs the contractual liability of the government."

• This is correct. Article 299 of the Constitution lays down the mandatory requirements and formalities that must be complied with for all contracts made in the exercise of the executive power of the Union or a State.

• Analyzing Statement (B): "Every contract must be expressed to be made by the President or the Governor."

• This is correct. Article 299(1) explicitly states: "All contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President, or by the Governor of the State..."

• Analyzing Statement (C): "It must be a formal written contract executed by a duly authorized person."

• This is correct. Courts have held that Article 299 is mandatory, not directory.

• Therefore, oral contracts or informal agreements are void and cannot be enforced against the government.

• The contract must be in writing, formal, and executed by a person who has been specifically authorized by the President or Governor.

• Since all three statements (A), (B), and (C) are legally true and accurate descriptions of Article 299, none of them is false.

• Therefore, "None of the above" (Option D) is the correct choice.

Step 4: Final Answer:
All the provided options are correct statements under Article 299, meaning none of them is false, which corresponds to Option (D).