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Commonly Asked Questions about Public Agreements

A public contract exists any time a public agency buys or receives goods or services, including computers, office supplies, vehicles, construction, and insurance policies, or hiring consultants and court reporters. This is true even if there is no formal, written contract and regardless of the amount spent.
A public authority will identify something they need, and theyll look for a supplier to fulfil that need. To do this, they publish a contract notice. Essentially, its the public sector version of a wanted ad. And its where your journey to winning new business begins.
A public contract is an agreement between two or more parties that creates obligations that are enforceable by law. It can be a written document or a verbal agreement. For example, a government agency may enter into a public contract with a construction company to build a new road.
When an agreement is deemed to be in violation of public policy, the contract will not be effective and will be void. The execution of some types of general agreements may be deemed contrary to the interests of the public and is forbidden by the law.
For example, a court will never enforce a contract promoting something already against state or federal law (you can never enforce a contract for an illegal marijuana sale) or an agreement that offends the public sensibilities (contracts involving some sort of sexual immorality, for example).
A contract is unenforceable on grounds of illegality or public policy in two circumstances: 1) legislation provides that it is unenforceable, or 2) the interest in its enforcement is clearly outweighed in the circumstances by a public policy against the enforcement of such terms.
California Civil Code 1608 codifies the doctrine of illegality and provides that [i]f any part of a single consideration for one or more objects, or of several considerations for a single object, is unlawful, the entire contract is void. Under Civil Code 1667 , unlawful is broadly defined as that which is
Legal agreements are only valid if they conform to the law. A contract that violates public policy or requires one party to do something illegal is automatically non-binding. For instance, if a contract requires one party to ignore local tax laws, that contract violates public policy and wont hold up in court.