Article 299 lays down condition which must be fulfilled in contracts made by or with the union or a state –

Article 299 of the Constitution of India, therefore, prescribes a specific procedure enabling the agents of the government to make contracts in order to bind the government. Art. 299(1) of the Constitution lays down that all contracts made in the exercise of the executive power of the Union or a State shall be expressed to be made by the President or the Governor, respectively. They are to be executed on behalf of the President or Governor by such persons and in such manner as may be prescribed. Art. 299(2) then provides that neither the President not the Governor, nor the person actually executing such a contract becomes personally liable under such a contract.