What does the sovereign acts doctrine state about contracts with the government?

What will be an ideal response?


According to the sovereign acts doctrine, the government generally cannot be held liable for breach of contract due to legislative or executive acts. Because one Congress cannot bind a later Congress, the general rule is that subsequent acts of the government can discharge the government's preexisting contractual obligations. This doctrine has limits, however. If Congress passes legislation deliberately targeting its existing contractual obligation, the defense otherwise provided by the sovereign acts doctrine is unavailable. The government is not prevented from changing the law, but it must pay damages for its legislatively chosen branch. On the other hand, if a new law of general application indirectly affects a government contract, making the government's performance impossible, the sovereign acts doctrine will protect the government in a subsequent suit for breach of contract.

Business

You might also like to view...

Explain what amount is recorded in the Additional Paid-in Capital account when stock is issued

Business

Performance feedback is typically not necessary for newly empowered employees.

Answer the following statement true (T) or false (F)

Business

Which of the following statements is LEAST likely to be true about networking?

A. Relationships are based on usefulness and profit sharing. B. The people who make up your relationship network will allow you to learn from them. C. Building and maintaining relationships requires the mutual investment of effort, time, and resources. D. Salespeople should always ask themselves how they can help those in their network. E. Networking is your personal array of relationship.

Business

Use master slides to:

a. allow for maximum variety of design within a presentation b. make the design of your slides consistent c. both of the above d. none of the above

Business