Government Agreements under Contracts and Constitution

Only available on StudyMode
  • Download(s): 190
  • Published: December 11, 2012
Read full document
Text Preview
NATIONAL LAW INSTITUTE UNIVERSITY

A PROJECT OF CONTRACT-I

Government Agreements under Contracts and Constitution

SUBMITTED TO :- SUBMITTED BY: DR.(Prof.)MOHD. ISHAQ QURESHI SIDDHARTH SHARMA PROFESSOR 2012BALLB100  ACKNOWLEDGEMENT

I would like to thank my Law of Contracts-I teacher, Dr. Prof. Mohd. Ishaq Qureshi for giving me such an interesting topic and allowing me to make a project on it. I would also like to thank my seniors as well as my friends for providing me with their valuable inputs during the course of this project.

I would also like to express my gratitude to our Director, Prof. S.S Singh who has always encouraged us and supported us in our Endeavour by providing us world class facilities like Library and Wi-Fi connection.

I am also thankful to my parents for their constant inspiration and moral support that kept me going throughout the project.


INTRODUCTION

The subject of government contracts has assumed great importance in the modern times. Today the state is a source of wealth. In the modern era of a welfare state, government's economic activities are expanding and the government is increasingly assuming the role of the dispenser of a large number of benefits. Today a large number of individuals and business organizations enjoy largess in the form of government contracts, licenses, quotas, mineral rights, jobs, etc. This raises the possibility of exercise of power by a government to dispense largess in an arbitrary manner. It is axiomatic that the government or any of its agencies ought not to be allowed to act arbitrarily and confer benefits on whomsoever they want. Therefore there is a necessity to develop some norms to regulate and protect individual interest in such wealth and thus structure and discipline the government discretion to confer such benefits. In the modern era of a welfare state, government's economic activities are expanding and the government is increasingly assuming the role of the dispenser of a large number of benefits. Today a large number of individuals and business organisations enjoy largess in the form of government contracts, licenses, quotas, mineral rights, jobs, etc. The paper discusses the origin as well as current position of government contract in other countries like the UK, US etc. and then subsequently moves on to the Indian perspective. It analyses the position of government contracts in India, their statutory as well as judicial recognition and the liabilities on the State owing to the said recognition. Furthermore, the paper discusses various common law principles that govern the contractual liability of the State and make it a necessity in the modern times. The paper criticises the role of the executive and the legislative organs of the government and concludes that there is a necessity to develop some norms to regulate and protect individual interest in such wealth and thus structure and discipline the government discretion to confer such benefits.

Contract-Meaning of the term
A contract is an agreement enforceable by law which offers personal rights, and imposes personal obligations, which the law protects and enforces against the parties to the agreement. The general law of contract is based on the conception, which the parties have, by an agreement, created legal rights and obligations, which are purely personal in their nature and are only enforceable by action against the party in default.

Section 2(h) of the Indian Contract Act, 1872 defines a contract as "An agreement enforceable by law". The word 'agreement' has been defined in Section 2(e) of the Act as ‘every promise and every set of promises, forming consideration...
tracking img