This chapter examines the Indian constitutional position relating to the formation of contracts and the substantive elements of government contracting. In particular, it considers the key issues and controversies surrounding government contracts and the contracting power of the government. It first discusses the formation of contracts to which the government is a party, along with the circumstances when the government can enter into a contract that binds it into a contractual obligation. It then describes the manner in which the government arrives at a decision to enter into—or award—a contract with (or to) a specific individual or business. It also comments on the nature and extent of judicial review of government contracting. Finally, it explains how the Indian Supreme Court has struck a balance to protect public interest from unauthorised government contracts, while also providing protection to contracting parties to a certain extent.
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