B-144377, NOV. 16, 1960

B-144377: Nov 16, 1960

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IT SHOULD BE UNDERSTOOD THAT THE BID DEPOSIT AMOUNTING TO 20 PERCENT OF YOUR BID WHICH YOU FURNISHED WITH YOUR OFFER TO BUY THE PROPERTY WAS REQUIRED OF ALL BIDDERS BEFORE THEIR OFFERS COULD LEGALLY BE CONSIDERED BY THE UNITED STATES. THE BID DEPOSIT WAS YOUR GUARANTEE THAT. IF YOU WERE AWARDED THE CONTRACT TO PURCHASE THE PROPERTY. THIS YOU DID NOT DO AS WAS REQUIRED OF YOU BY YOUR CONTRACT. IT WAS CLEAR THAT IF YOU FAILED TO PERFORM. THERE IS NO AUTHORITY OF LAW TO REFUND THE AMOUNT OF YOUR BID DEPOSIT.

B-144377, NOV. 16, 1960

TO MR. ALBERTO TAPPARI:

BY LETTER OF AUGUST 15, 1960, YOU DENY THE CLAIM OF THE UNITED STATES FOR LIRE 6,069,603, REPRESENTING DAMAGES THE UNITED STATES SUSTAINED ON ACCOUNT OF YOUR DEFAULT UNDER CONTRACT NO. DA-91-214-SETF /S/1135 DATED SEPTEMBER 26, 1957. YOU ALSO CLAIM REFUND OF YOUR BID DEPOSIT IN THE AMOUNT OF LIRE 2,202,000 WHICH THE UNITED STATES HAD APPLIED IN PARTIAL SATISFACTION OF THE DAMAGES SUSTAINED BY IT IN STORING THE PROPERTY PURCHASED BY YOU UNDER THE CONTRACT AND IN SELLING SUCH PROPERTY TO ANOTHER PURCHASER.

IT SHOULD BE UNDERSTOOD THAT THE BID DEPOSIT AMOUNTING TO 20 PERCENT OF YOUR BID WHICH YOU FURNISHED WITH YOUR OFFER TO BUY THE PROPERTY WAS REQUIRED OF ALL BIDDERS BEFORE THEIR OFFERS COULD LEGALLY BE CONSIDERED BY THE UNITED STATES. UNDER PARAGRAPH 4 OF THE GENERAL SALE TERMS AND CONDITIONS OF YOUR CONTRACT WITH THE UNITED STATES, THE BID DEPOSIT WAS YOUR GUARANTEE THAT, IF YOU WERE AWARDED THE CONTRACT TO PURCHASE THE PROPERTY, YOU WOULD PERFORM YOUR PART OF THE BARGAIN BY PAYING THE BALANCE DUE AND REMOVING THE PROPERTY FROM THE CUSTODY OF THE UNITED STATES. THIS YOU DID NOT DO AS WAS REQUIRED OF YOU BY YOUR CONTRACT.

UNDER YOUR CONTRACT, IT WAS CLEAR THAT IF YOU FAILED TO PERFORM, THE UNITED STATES COULD APPLY YOUR BID DEPOSIT AGAINST THE LOSSES SUFFERED BY THE UNITED STATES BY REASON OF YOUR DEFAULT. SINCE THE UNITED STATES SUFFERED A LOSS OF LIRE 8,271,603 BECAUSE OF YOUR FAILURE TO PERFORM THE CONTRACT ACCORDING TO ITS TERMS, IT HAD THE RIGHT TO APPLY YOUR LIRE 2,202,000 BID DEPOSIT AGAINST THAT LOSS.

THE UNITED STATES HAD NO OTHER CHOICE BUT TO AVAIL ITSELF OF THE RIGHTS IT HAD UNDER THE CONTRACT WHICH YOU REFUSED TO PERFORM. SUCH CIRCUMSTANCES, THERE IS NO AUTHORITY OF LAW TO REFUND THE AMOUNT OF YOUR BID DEPOSIT, OR TO RELIEVE YOU OF YOUR LEGAL RESPONSIBILITY TO PAY TO THE UNITED STATES THE AMOUNT OF LIRE 6,069,603 REMAINING DUE AND PAYABLE ON ACCOUNT OF YOUR CONTRACT DEFAULT.

WE, THEREFORE, AGAIN REQUEST THAT YOU PROMPTLY MAKE PAYMENT IN FULL OF THE AMOUNT DUE AS REQUESTED IN OUR EARLIER LETTER OF JULY 27, 1959.