AUGUST 7, 1922, 2 COMP. GEN. 83

AUGUST 7, 1922, 2 COMP. GEN. 83

DISCOUNTS ON CONTRACT PRICES THE FACT THAT GOODS BILLED AT PRICES FIXED BY CONTRACT ARE BILLED ON THE CONTRACTOR'S REGULAR BILLHEADS CONTAINING A PRINTED OFFER OF DISCOUNT FOR PAYMENT WITHIN A SPECIFIED TIME DOES NOT AUTHORIZE THE DEDUCTION OF SUCH DISCOUNT IN THE ABSENCE OF A SHOWING THAT THE PRINTED NOTICE CONSTITUTES AN EXPRESS OFFER AMENDING THE CONTRACT.

DECISION BY COMPTROLLER GENERAL MCCARL, AUGUST 7, 1922:

JAMES C. WOOLLEY, SPECIAL DISBURSING AGENT, DEPARTMENT OF COMMERCE, APPLIED APRIL 29, 1922, FOR REVIEW OF SETTLEMENT NO. 11561 DATED MARCH 10, 1922, OF THE STATE AND OTHER DEPARTMENTS DIVISION OF THIS OFFICE IN WHICH WERE DISALLOWED IN HIS ACCOUNTS TWO ITEMS AMOUNTING TO $3.22 FOR DISCOUNT ON BILLS FOR SUPPLIES PURCHASED FOR THE LIGHTHOUSE SERVICE AT PORTLAND, ME.

ONE ITEM OF $2.51 WAS IN CONNECTION WITH TWO INVOICES OF THE EDISON LAMP WORKS OF THE GENERAL ELECTRIC CO. THE INVOICES COVERED ELECTRIC LAMPS PURCHASED IN ACCORDANCE WITH THE SCHEDULE OF THE GENERAL SUPPLY COMMITTEE. THE INVOICES BORE THE PRINTED NOTICE "TERMS: NET CASH 30 DAYS, 2 PERCENT 10 DAYS FROM DATE OF INVOICE.' THE PRICES STATED IN THE INVOICES ARE THE NET PRICES FIXED BY THE CONTRACT OF THE GENERAL SUPPLY COMMITTEE. THE PRINTED NOTICE ON THE INVOICES IS NOT A PART OF THE CONTRACT AND IS NOT TO BE REGARDED AS AN EXPRESS OFFER AMENDING THE CONTRACT. SEE 23 COMP. DEC., 141.

THE OTHER ITEM OF 71 CENTS WAS IN CONNECTION WITH AN INVOICE FOR BUILDING MATERIAL BOUGHT FROM THE BROWN CO., OF PORTLAND, ME., UNDER A PROPOSAL AND ACCEPTANCE CONTRACT. THE PROPOSAL WAS SUBJECT TO THE CONDITIONS ON THE PRINTED FORM ON WHICH IT WAS MADE. PARAGRAPH 5 OF THE INSTRUCTIONS TO BIDDERS WHICH APPEARED ON THE BACK OF THE PROPOSAL FORM WAS AS FOLLOWS:

5. * * * BIDDERS SHOULD STATE WHETHER ANY DISCOUNT FROM PRICES QUOTED WILL BE ALLOWED FOR PROMPT PAYMENT, AND IF SO, THE RATE OF DISCOUNT AND TIME AFTER ARTICLES, SUPPLIES, OR MATERIALS ARE DELIVERED OR SERVICES PERFORMED WITHIN WHICH PAYMENT MUST BE MADE. IF NO DISCOUNT IS STATED ON THIS PROPOSAL IT WILL BE UNDERSTOOD THAT NONE IS OFFERED, IRRESPECTIVE OF ANY NOTATIONS ON INVOICES OR BILLS.

THE GOODS BOUGHT UNDER THE CONTRACT WERE BILLED ON THE BROWN CO.'S REGULAR BILLHEAD WHICH HAD PRINTED ON IT,"TERMS, 1 PERCENT 15 DAYS.' THE DISALLOWANCE WAS ON THE GROUND THAT THE DISCOUNT SHOULD HAVE BEEN DEDUCTED INASMUCH AS THE BILL WAS PAID WITHIN 15 DAYS.

THE NOTATION ON THE BILL WAS SUCH A NOTATION AS WAS SPECIFIED IN PARAGRAPH 5 OF THE INSTRUCTIONS TO BIDDERS. IT HAS REFERENCE TO GOODS BILLED IN THE ORDINARY COURSE OF BUSINESS, BUT IS NOT INTENDED AS AND DOES NOT OPERATE AS AN AMENDMENT OF THE CONTRACT UNDER WHICH THE GOODS WERE PURCHASED.

THE SETTLEMENT IS REVERSED AS TO ITEMS HEREIN CONSIDERED, AND $3.22 IS CERTIFIED FOR CREDIT IN THE ACCOUNTS OF JAMES C. WOOLLEY.