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Art. 299 Part XII: Finance, Property, Contracts and Suits

Contracts

Exact text — Constitution of India

(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... nor shall any person making or executing any such contract or assurance on behalf of any of them be personally liable in respect thereof.

In Plain English

What this Article actually means

This Article sets the formal legal requirements for government contracts — they must be expressed as made in the President's (or Governor's) name and executed by someone properly authorised to do so on their behalf, with a crucial protection: neither the President/Governor personally, nor the official actually signing the contract, bears personal liability for it (the government itself is liable instead).
Why This Matters To You

How it shows up in everyday life

This is why a government contract typically reads as being entered into 'by the President of India' or 'by the Governor of [State]' even though an ordinary government official actually negotiated and signed it — a formal legal fiction that also protects individual officials from personal liability for contracts they execute in their official capacity.

Landmark Cases

How courts have interpreted this Article

K.P. Chowdhry v. State of Madhya PradeshAIR 1967 SC 203 — Held that a government contract not properly executed in compliance with this Article's formal requirements is not enforceable in the ordinary way against the government — strict compliance with the Article's form matters significantly. Verify this case
Frequently Asked

Quick answers about Article 299

What happens if a government contract isn't properly executed under this Article's formal requirements?
Courts have generally held that non-compliant contracts aren't enforceable against the government in the ordinary contractual sense, though other legal remedies (like restitution for benefits received) may sometimes still be available depending on the circumstances.

The text above reproduces Article 299 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.