(a) If after an award it is determined that a solicitation or award of a contract is in violation of law, then: (1) if the person awarded the contract has not acted fraudulently or in bad faith: (A) the contract may be ratified and affirmed, provided it is determined that doing so is in the best interests of Guam; or (B) the contract may be terminated and the person awarded the contract shall be compensated for the actual expenses reasonably incurred under the contract, plus a reasonable profit, prior to the termination.
COL 2026-04-23
(2) if the person awarded the contract has acted fraudulently or in bad faith: (A) the contract may be declared null and void; or (B) the contract may be ratified and affirmed if such action is in the best interests of Guam, without prejudice to Guam’s rights to such damages as may be appropriate. (b) This Section shall be read as being in addition to and not in conflict with, or repealing 4 GCA § 4137 (Prohibitions on the Activities of Government Employees). SOURCE: GC § 6976.2. MPC § 9-203 modified. 2023 NOTE: References to “Territory” replaced with “Guam” pursuant to 1 GCA § 420. 2012 NOTE: In maintaining the general codification scheme of the GCA the Compiler changed the hierarchy of subsections beginning with “Lowercase Roman Numerals” to “Uppercase Letters” in subsections (a)(1)-(2). COMMENT: See 4 GCA § 4134(f)(2) regarding situations where a government employee has a conflict of interest. Since this Section deals with similar remedies as does 4 GCA § 4137, the two sections should be read as complementing each other, not one repealing the other. Both have their place within the government. In cases of employee conflicts, 4 GCA should prevail and those contracts rendered null and void as a result of the application of 4 GCA § 4137 would not be subject to this Section. NOTE: (2004) After a diligent search, it appears that 4 GCA § 4134 no longer exists. While, specifically, there is no record of its repeal, the Compiler believes that this section was removed as a part of the overall re-enactment of Title 4 GCA Chapter 4 in the 16th Guam Legislature. Nowhere were individual sections repealed in that Legislature, rather the entire first Article was repealed and re-enacted. Since it adds nothing to this Section, it loss will not be missed.
SUBARTICLE C INTEREST