B-124944, AUG. 16, 1955

B-124944: Aug 16, 1955

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TO SECRETARY OF THE NAVY: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 1. THE DOCUMENTS TRANSMITTED WITH YOUR LETTER SHOW THAT THE SUBJECT CONTRACT WAS AWARDED TO MR. THAT HIS WIDOW IS UNFAMILIAR WITH HER HUSBAND'S BUSINESS AND IS UNWILLING TO TAKE OVER THE PROPERTY PURCHASED BY HIM UNDER THE CONTRACT IN QUESTION. WHILE IT IS CLEAR THAT MR. HE WILL THEREBY LOSE ALL RIGHT. THE GOVERNMENT WILL RETAIN 20 PERCENT OF THE PURCHASE PRICE STIPULATED IN THE AGREEMENT OR $114.86 AS LIQUIDATED DAMAGES AND WILL REMIT TO HER OR TO THE EXECUTOR OR ADMINISTRATOR OF HER HUSBAND'S ESTATE.

B-124944, AUG. 16, 1955

TO SECRETARY OF THE NAVY:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 1, 1955, WITH ENCLOSURES, CONCERNING THE AWARD OF CONTRACT NO. N407S-1333, DATED JUNE 1, 1955, TO CHARLES I. STANFIELD, 100 MARINE AVENUE, BROOKLYN, NEW YORK.

THE DOCUMENTS TRANSMITTED WITH YOUR LETTER SHOW THAT THE SUBJECT CONTRACT WAS AWARDED TO MR. STANFIELD AS THE RESULT OF ACCEPTANCE OF HIS BIDS ON ITEMS 50 AND 53 OF INVITATION NO. B-27-55 IN A TOTAL AMOUNT OF $574.31. IT APPEARS THAT MR. STANFIELD DEPOSITED WITH HIS BIDS THE SUM OF $405 AND THAT PRIOR TO TAKING POSSESSION OF THE PROPERTY, MR. STANFIELD DIED ON JUNE 30, 1955. IT FURTHER APPEARS FROM HER LETTER OF JULY 12, 1955, THAT HIS WIDOW IS UNFAMILIAR WITH HER HUSBAND'S BUSINESS AND IS UNWILLING TO TAKE OVER THE PROPERTY PURCHASED BY HIM UNDER THE CONTRACT IN QUESTION.

WHILE IT IS CLEAR THAT MR. STANFIELD'S DEATH WOULD NOT RELIEVE HIS ESTATE OF ALL LIABILITY UNDER THE CONTRACT IN QUESTION, IT WOULD SEEM THAT UNDER THE CIRCUMSTANCES IN THIS CASE THE FOLLOWING PROVISIONS OF ARTICLE 18 OF THE AGREEMENT SHOULD PROPERLY BE APPLICABLE:

"* * * IF AFTER AWARD THE PURCHASER FAILS TO PAY THE BALANCE OF THE PURCHASE PRICE, FAILS TO REMOVE THE MATERIAL, OR OTHERWISE FAILS TO PERFORM ANY OF ITS OBLIGATIONS, HE WILL THEREBY LOSE ALL RIGHT, TITLE, AND INTEREST IN THE MATERIAL HEREUNDER, AND THE GOVERNMENT MAY, AT ITS ELECTION, RETAIN THE MATERIAL AND MAY RETAIN FROM ANY AMOUNT PAID BY THE PURCHASER, AS LIQUIDATED DAMAGES, A SUM EQUAL TO TWENTY PERCENT (20 PERCENT) OF THE PURCHASE PRICE PLUSANY ACCRUED CHARGES HEREUNDER. THE BALANCE, IF ANY, SHALL BE REMITTED TO THE PURCHASER.'

ACCORDINGLY, MRS. STANFIELD SHOULD BE ADVISED THAT IN VIEW OF THE CONTENTS OF HER LETTER AND IN CONFORMITY TO THE QUOTED PROVISIONS OF ARTICLE 18 OF THE CONTRACT, THE GOVERNMENT WILL RETAIN 20 PERCENT OF THE PURCHASE PRICE STIPULATED IN THE AGREEMENT OR $114.86 AS LIQUIDATED DAMAGES AND WILL REMIT TO HER OR TO THE EXECUTOR OR ADMINISTRATOR OF HER HUSBAND'S ESTATE, IF A PERSON OTHER THAN HERSELF, THE BALANCE OF THE DEPOSIT MADE BY HER HUSBAND OR $290.14.