A-7993, MARCH 6, 1925, 4 COMP. GEN. 738

A-7993: Mar 6, 1925

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CANCELLATION BEFORE DELIVERY - RECLAMATION SERVICE WHERE A PURCHASE ORDER WAS PLACED FOR THE UNITED STATES FOR CERTAIN GOODS. WITH THE PROVISION THAT DELIVERY WAS TO BE COMPLETED ON OR BEFORE A FIXED DATE. NO DELIVERIES WERE MADE PRIOR TO. WAS APPLIED AS A PARTIAL SET-OFF AGAINST THE INDEBTEDNESS OF THE CLAIMANT TO THE UNITED STATES OF $875.00 ON ACCOUNT OF AN IMPROPER PAYMENT TO THEM OF THAT AMOUNT MADE ON VOUCHER 324. THE IMPROPER PAYMENT WAS THE AMOUNT ALLOWED THE CLAIMANT IN AN AGREEMENT EXECUTED DECEMBER 5. THIS PURCHASE ORDER WAS PLACED WITH THE CLAIMANT BY THE THOMPSON STARRETT CO. NO SHIPMENT WAS MADE OF ANY PORTION OF THE ORDER AND ACCORDING TO THE REPORT OF THE WAR DEPARTMENT THE ORDER WAS CANCELED ON DECEMBER 5.

A-7993, MARCH 6, 1925, 4 COMP. GEN. 738

PURCHASES, CANCELLATION BEFORE DELIVERY - RECLAMATION SERVICE WHERE A PURCHASE ORDER WAS PLACED FOR THE UNITED STATES FOR CERTAIN GOODS, WITH THE PROVISION THAT DELIVERY WAS TO BE COMPLETED ON OR BEFORE A FIXED DATE, AND NO DELIVERIES WERE MADE PRIOR TO, OR ON, SUCH DATE, THE SUBSEQUENT CANCELLATION OF THE PURCHASE ORDER DOES NOT IMPOSE ANY LIABILITY ON THE UNITED STATES.

DECISION BY COMPTROLLER GENERAL MCCARL, MARCH 6, 1925:

JAMES B. CLOW AND SONS APPLIED NOVEMBER 10, 1924, FOR REVIEW OF SETTLEMENT NO. 051441-I, DATED NOVEMBER 1, 1924, WHEREIN THE AMOUNT OF $227.18 DUE THEM BY THE UNITED STATES FOR PIPE AND PIPE FITTINGS FURNISHED THE UNITED STATES RECLAMATION SERVICE UNDER CONTRACT DATED JANUARY 21, 1924, WAS APPLIED AS A PARTIAL SET-OFF AGAINST THE INDEBTEDNESS OF THE CLAIMANT TO THE UNITED STATES OF $875.00 ON ACCOUNT OF AN IMPROPER PAYMENT TO THEM OF THAT AMOUNT MADE ON VOUCHER 324, MARCH, 1919, ACCOUNTS OF W. M. WOOD, MAJOR, QUARTERMASTER CORPS.

THE IMPROPER PAYMENT WAS THE AMOUNT ALLOWED THE CLAIMANT IN AN AGREEMENT EXECUTED DECEMBER 5, 1918, AS COMPENSATION FOR THE CANCELLATION OF PURCHASE ORDER NO. 16338, DATED NOVEMBER 6, 1918. THIS PURCHASE ORDER WAS PLACED WITH THE CLAIMANT BY THE THOMPSON STARRETT CO. AS AGENT OF THE UNITED STATES FOR 350 WATER CLOSETS AT $22.00 EACH, SHIPMENT TO BE MADE ON OR BEFORE NOVEMBER 11, 1918. NO SHIPMENT WAS MADE OF ANY PORTION OF THE ORDER AND ACCORDING TO THE REPORT OF THE WAR DEPARTMENT THE ORDER WAS CANCELED ON DECEMBER 5, 1918, AND THE CANCELLATION AGREEMENT OF THAT DATE WAS EXECUTED PROVIDING FOR PAYMENT TO THE CLAIMANT OF $875.00 IN PAYMENT OF THE LIABILITY OF THE GOVERNMENT UNDER THE ORDER.

WHERE AN ORDER HAS BEEN PLACED FOR GOODS TO BE DELIVERED WITHIN A SPECIFIED TIME AND NO PART OF SUCH GOODS IS DELIVERED DURING THE TIME STIPULATED, THE PURCHASER IS UNDER NO OBLIGATION TO ACCEPT AND PAY FOR THE GOODS PURCHASED. THE FAILURE TO MAKE SHIPMENT ON OR BEFORE NOVEMBER 11, 1918, RELIEVED THE GOVERNMENT FROM ANY OBLIGATION THAT MIGHT HAVE BEEN PLACED UPON IT BY THE PURCHASE ORDER IN QUESTION, CONSEQUENTLY THERE WAS NO AUTHORITY FOR THE PAYMENT OF $875.00 MADE THE CLAIMANT BY MAJOR WOOD.

THE CLAIMANT CONTENDS THAT IT WAS NOTIFIED THROUGH ANOTHER FIRM BY THOMPSON-STARRETT CO. PRIOR TO THE DATE OF NOVEMBER 11, 1918, TO HOLD UP ALL WORK ON THE ORDER, BUT THE UNSUPPORTED STATEMENT AS TO A TELEPHONE CONVERSATION ON SOME INDEFINITE DATE BETWEEN IT AND ANOTHER FIRM WHICH HAD NO AUTHORITY TO ACT FOR THE GOVERNMENT CAN NOT BE ACCEPTED IN LIEU OF THE REPORT OF THE WAR DEPARTMENT HEREINBEFORE REFERRED TO. ..END :