B-145353, APR. 3, 1961

B-145353, APR. 3, 1961

TO AUTHORIZED CERTIFYING OFFICER, DEPARTMENT OF COMMERCE:

REFERENCE IS MADE TO YOUR LETTER DATED MARCH 14, 1961, WITH ENCLOSURES, REQUESTING A DECISION AS TO WHETHER YOU ARE AUTHORIZED TO CERTIFY FOR PAYMENT A VOUCHER TRANSMITTED THEREWITH IN FAVOR OF SINGMASTER AND BREYER, INC., 420 LEXINGTON AVENUE, NEW YORK 17, NEW YORK, IN THE AMOUNT OF $1,500, COVERING SERVICES RENDERED BY THE CLAIMANT TO THE OFFICE OF INTERNATIONAL TRADE FAIRS FOR THE UNITED STATES EXHIBIT AT THE NEW DELHI WORLD AGRICULTURAL FAIR.

IT WAS REPORTED IN YOUR LETTER THAT THE SERVICES IN QUESTION WERE RENDERED WITHOUT A FORMAL CONTRACT, APPARENTLY ON THE BASIS ONLY OF A VERBAL COMMITMENT AND DISCUSSIONS WITH MR. NATHANIEL KNOWLES, THE FAIR GENERAL MANAGER, IN JULY OF 1959. YOU REPORTED FURTHER THAT CONTEMPORANEOUSLY WITH THE RENDERING OF THE SERVICES AND SUBSEQUENT THERETO ATTEMPTS WERE MADE TO FORMALIZE THE ORAL UNDERSTANDING IN A WRITTEN CONTRACT BUT THAT, HOWEVER, DUE TO THE UNAVAILABILITY OF THE GENERAL MANAGER, WHO WAS OUT OF THE COUNTRY, MR. RICHARD M. GOTTFRIED, THE CONTRACTING OFFICER FOR THE OFFICE OF INTERNATIONAL TRADE FAIRS, DECLINED TO ENTER INTO A WRITTEN CONTRACT. THE RECORD INDICATES THAT SUBSEQUENTLY THE OFFICE OF INTERNATIONAL TRADE FAIRS EVALUATED THE SERVICES RECEIVED AT $1,500, AND YOU REPORTED THAT SINGMASTER AND BREYER, INC., HAS AGREED TO ACCEPT THAT AMOUNT IN FULL AND FINAL PAYMENT FOR THE SERVICES RENDERED.

AMONG THE ENCLOSURES TO YOUR LETTER WAS A MEMORANDUM DATED FEBRUARY 24, 1961, BY MR. GOTTFRIED--- NOW THE EXECUTIVE OFFICER OF THE OFFICE OF INTERNATIONAL TRADE FAIRS--- STATING THAT WHILE THE SERVICES WERE RENDERED WITHOUT A FORMAL CONTRACT, THE OFFICE OF INTERNATIONAL TRADE FAIRS HAS CONCLUDED THAT THE SERVICES WERE FURNISHED AT THE REQUEST OF A RESPONSIBLE OFFICER AND THAT THE AMOUNT OF $1,500 REPRESENTS THE FAIR VALUE OF THE SERVICES RENDERED. AFTER SETTING FORTH CERTAIN FACTS RELATING TO THE MATTER, MR. GOTTFRIED RECOMMENDED THAT THE CLAIMANT'S INVOICE IN THE AMOUNT OF $1,500 BE PAID.

FOR THE PURPOSE OF DISPOSING OF THE PENDING CLAIM IT SEEMS ONLY NECESSARY TO RESPOND TO THE INQUIRY CONTAINED IN THE LAST PARAGRAPH OF YOUR LETTER, NAMELY, WHETHER PAYMENT IN THIS CASE WOULD BE PROPERLY BASED UPON THE FACT THAT THE SERVICES WERE REQUESTED BY RESPONSIBLE OFFICIALS OF THE GOVERNMENT, THAT THEY WERE RENDERED BY THE CONTRACTOR AND RECEIVED AND ACCEPTED BY THE GOVERNMENT, AND THAT THE AMOUNT OF $1,500--- ADMINISTRATIVELY DETERMINED AS THE VALUE OF THE SERVICES--- IS ACCEPTABLE TO BOTH THE CONTRACTOR AND THE GOVERNMENT.

IN VIEW OF THE FACTS REPORTED IN THIS CASE IT IS OUR VIEW THAT THE CLAIM IS ALLOWABLE AS UNDER AN IMPLIED CONTRACT TO PAY A REASONABLE PRICE FOR THE SERVICES RENDERED. THE RULE IN SUCH MATTERS APPEARS TO BE THAT SET FORTH IN 12 AMER.JUR., CONTRACTS, SECTION 5, TO THE EFFECT THAT WHERE A PERSON PERFORMS SERVICES, FURNISHES PROPERTY, OR EXPENDS MONEY FOR ANOTHER AT THE OTHER'S REQUEST AND THERE IS NO AGREEMENT AS TO COMPENSATION, A PROMISE TO PAY THE REASONABLE VALUE OF THE SERVICES OR PROPERTY OR TO REIMBURSE FOR MONEY EXPENDED MAY PROPERLY BE IMPLIED WHERE THE CIRCUMSTANCES WARRANT SUCH AN INFERENCE.

UPON THE BASIS OF THE RECORD IN THIS CASE YOU ARE AUTHORIZED TO CERTIFY THE VOUCHER--- WHICH IS RETURNED HEREWITH--- FOR PAYMENT, IF OTHERWISE CORRECT.