Power of the State to Enter Into Contracts in India and United States A Comparative Study

Abstract

Today the role of a government in a welfare state is three-fold. It is a regulator, dispenser and provider. Benefits provided by it includes jobs, contracts, licenses, quotas, mineral rights, to name a few. In all these, lot of facilities like wealth poured; monetary benefits and services extended; and contracts, quotas and licenses granted to people. The Government is not bound to take the risk of awarding a contract to an untried party where the nature of the work to be done requires special skill, expertise and foresight. Even if the said party has quoted the most favorable terms, the Government, while awarding the contract is bound to take into consideration the capability of the tenderer to properly execute the work within the time schedule. The government of United States is the biggest purchaser in the whole world and procurement by its executive agencies represents about one-fourth of its budget. A wide range of public needs serving complex economic activities affects government contracts. In the result, several differences with private contracts could be seen. There include mandatory clauses which are inserted into the government contract and which a contractor must accept if he enters into contracts with the government. The present research study is essentially doctrinal study based on a detailed survey and examination of:Primary data, namely Debates, Acts, judgements of the apex court among other sources (listed in detail in the bibliography) and Secondary data, namely books, articles etc.The mai finding is a law of such a nature will undoubtedly deal with practically every one of the lacks which are as of now winning in the zone of agreements in India and in this manner make the framework progressively straightforward and responsible so the acknowledgment that the state exists for the welfare of the individuals has a ring of truth. newline