Formalities and Execution of Government Contracts
Official heading: “Contracts”
- Source edition
- The Constitution of India (as on 1 May 2026)
- Source locator
- Part XII, Article 299, printed pages 174–175
- Last human source-link check
- Not yet checked
- Last human legal review
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1. In One Sentence
Mandates that all government contracts must be expressed to be made by the President or Governor and executed by authorized officers, conferring personal immunity on heads of state.
2. What It Means in Everyday Language
Article 299 prescribes mandatory constitutional formalities for all contracts entered into by the Central or State Governments.
Clause (1) establishes three mandatory conditions: (a) the contract must be expressed to be made by the President or the Governor; (b) it must be executed in writing; and (c) it must be executed on behalf of the President or Governor by such persons and in such manner as they may direct or authorize.
The Supreme Court in K.P. Chowdhry v. State of M.P. (1966) ruled that these provisions are mandatory, not directory. An oral agreement or an informal letter that fails to satisfy Article 299 is void and cannot be enforced against the Government.
Clause (2) grants complete personal immunity: neither the President, nor the Governor, nor the contracting officer can be held personally liable for any breach of a valid government contract.
3. Practical Illustrative Example
A vendor signs a major public procurement contract with a ministry, but the agreement is signed by an unauthorized subordinate clerk rather than the notified contracting officer.
4. Important Limits, Qualifications & Exceptions
Article 299 protects the public exchequer from unauthorized or informal contractual commitments.
- Mandatory formalities: Must be in writing, expressed in the name of President/Governor, and executed by authorized officers.
- Void if non-compliant: Oral or unauthorized contracts are legally unenforceable against the state.
- Personal immunity: Heads of state and executing officers carry zero personal liability on public contracts.
5. Operative Constitutional Text
6. Sources & Historical Assembly Deliberations
Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.
- •Government of India (Legislative Department, Ministry of Law and Justice) • Part XII, Article 299, printed pages 174–175 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.