Limitations on Contract Obligations

Each autonomous and line agency shall be liable for its own contract obligations. Payments pursuant to this Section shall be paid from the funds certified for payment of the contract pursuant to the budget of the agency or appropriation against which the contract claim is made. SOURCE: Added by P.L. 17-029:1 (Nov. 9, 1983) as § 6500.31. Codified as 5 GCA § 6301. Amended by P.L. 27-142:3. COMMENT: At least one claimant has argued, unsuccessfully, that the government of Guam can be jointly liable with an autonomous agency under the former chapter. Such was never the intent of the Legislature, but the former law was at least doubtful on the point. See Aetna Life Ins. Co. v. Guam Memorial Hospital Authority and Government of Guam, 1 Guam R. 592 (1979).