Louisiana Revised Statutes 48:206 – Formal contract; checks or money orders forfeited in default; bond
Terms Used In Louisiana Revised Statutes 48:206
- Contract: A legal written agreement that becomes binding when signed.
If the secretary requires that a formal contract be entered into between the successful bidder and the department, covering any purchase for which bids are required, he may require that the bids submitted be accompanied by a certified or a cashier’s check, or by a postal or bank money order, as he may determine, for an amount designated by him. The check or money order shall be forfeited to the department if the bidder to whom the contract is awarded fails to sign the contract within ten days after having received notice of award from the department. Check or money orders of unsuccessful bidders shall be returned to them.
The successful bidder may, in any instance, be required to furnish a bond in an amount determined by the secretary, not more than the amount of the bid, conditioned upon the faithful performance of the contract.
Amended by Acts 1977, No. 291, §1; Acts 1979, No. 179, §1, eff. July 3, 1979.