What is Article 299 of Indian Constitution – Defination & Meaning

Article 299: Contracts (1) 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
📅 Part XII – Finance, Property, Contracts and Suits
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Article Number

299

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Part XII – Finance, Property, Contracts and Suits

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Bare Acts Text

Article 299: Contracts

  • (1) 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, as the case may be, and all such contracts and all assurances of property made in the exercise of that power shall be executed on behalf of the President or the Governor by such persons and in such manner as he may direct or authorise.
  • (2) Neither the President nor the Governor shall be personally liable in respect of any contract or
    assurance made or executed for the purposes of this Constitution, or for the purposes of any enactment relating to the Government of India heretofore in force, nor shall any person making or executing any such contract or assurance on behalf of any of them be personally liable in respect thereof.
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Full Definition & Explanation

Article 299 of the Indian Constitution deals with contracts made by the Union and State governments. It states that any contract executed under the executive power of either the Union or a State must be expressed to be made by the President or the Governor, depending on the context. This means that all contracts, whether for goods or services, must be signed on behalf of these officials. The article ensures that there is a formal structure when the government enters into agreements, which is key for maintaining accountability and clarity in governance. This article also addresses liability by stating that neither the President nor the Governor can be held personally responsible for any contract made under their authority. This provision protects these officials as well as the individuals executing contracts on their behalf. For example, if a contractor fails to deliver goods as per an agreement signed by the President, the contractor cannot sue the President personally. This helps to safeguard the executive from potential legal troubles that could arise from contractual disputes. The practical impact of Article 299 is seen in government procurement, public works, and various governmental agreements. It ensures that all contracts are executed in a standardized manner, which helps in upholding the integrity of public finances. When citizens or businesses engage with the government, they can be assured that there is a clear process. This clarity fosters trust between the government and the public, as it outlines the roles and responsibilities of both parties in any contract made under the government’s authority.

Historical Context

It states that any contract executed under the executive power of either the Union or a State must be expressed to be made by the President or the Governor, depending on the context. This means that all contracts, whether for goods or services, must be signed on behalf of these officials. The article ensures that there is a formal structure when the government enters into agreements, which is key for maintaining accountability and clarity in governance. This article also addresses liability by stating that neither the President nor the Governor can be held personally responsible for any contract made under their authority.

Key Features

– Contracts must be made by the President or the Governor.
– Liability for contracts does not extend to the President or Governor.
– It outlines how contracts should be formally executed.
– This article ensures accountability in government dealings
– It applies to both Union and State government contracts.

Importance & Impact

– Article 299 establishes formal processes for government contracts
– It protects high-ranking officials from personal liability
– The article enhances transparency in government agreements
– Public trust in government contracts is fostered through this article.
– It standardizes how contracts are executed in governance

Sample UPSC Question

Which of the following statements is/are correct regarding Article 299 of the Indian Constitution? Consider that: Article 299 of the Indian Constitution deals with contracts made by the Union and State governments in the context of Article 299. A) It mandates that all contracts must be signed by the President. B) The Governor can be personally liable for contracts made under their authority. C) It applies to both Union and State governments. D) Article 299 has been amended multiple times since 1950.

Answer

The correct answer is A and C. Article 299 mandates that contracts must be signed by the President or the Governor, depending on the context. It applies to both Union and State governments, providing a formal process for executing government contracts.

Key Takeaways

✓ Article 299 governs contracts made by the government.
✓ It protects officials from personal liability in contracts.
✓ All government contracts must follow a formal process.
✓ The article promotes transparency in government agreements
✓ It applies to both Union and State governments.

FAQs

Article 299 of the Indian Constitution deals with contracts made by the Union and State governments. It states that any contract executed under the executive power of either the Union or a State must be expressed to be made by the President or the Governor, depending on the context. This means that all contracts, whether for goods or services, must be signed on behalf of these officials.

For example, if a contractor fails to deliver goods as per an agreement signed by the President, the contractor cannot sue the President personally. This helps to safeguard the executive from potential legal troubles that could arise from contractual disputes. The practical impact of Article 299 is seen in government procurement, public works, and various governmental agreements.

It ensures that all contracts are executed in a standardized manner, which helps in upholding the integrity of public finances. When citizens or businesses engage with the government, they can be assured that there is a clear process. This clarity fosters trust between the government and the public, as it outlines the roles and responsibilities of both parties in any contract made under the government’s authority.

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Pramod Pal Founder and Editor-in-Chief

Pramod is the Founder and Editor-in-Chief of StudyHub. He holds a Master's degree and is currently pursuing a Ph.D. in Geology, alongside more than 7+ years spent building and verifying competitive exam content for Indian aspirants. He leads StudyHub's editorial process across Indian Polity, the Constitution, Indian Economy, History, Geography, Science, and the platform's other subject areas — checking every article against primary sources (bare act text and Gazette notifications for constitutional topics, government and Economic Survey data for economy content, standard reference material elsewhere) and flagging it for re-verification whenever a relevant amendment, policy, or data update makes an earlier version outdated.
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