Is a contract that was awarded to a contractor void as a result of a breach of contract?

California, United States of America


The following excerpt is from Cmty. Hosp. of San Bernardino v. Allenby, B261182 (Cal. App. 2016):

Defendants do not dispute that the elements of these causes of action are adequately pled. Rather, relying upon Amelco Electric v. City of Thousand Oaks (2002) 27 Cal.4th 228 (Amelco), they assert that equitable remedies cannot be used to enforce an otherwise void agreement against the government. Amelco is readily distinguishable; it considered a public works contract in the context of the competitive bidding statutes. (Id. at pp. 234, 239.) Moreover, defendants cite the following comment in Amelco: "'If, as we have seen, the contract is absolutely void as being in excess of the agency's power, the contractor acts at his peril, and he cannot recover payment for the work performed.'"

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