The courts did not invalidate the contract due to exceeding the limit for small public procurement

12 March 2020, Thursday

The customer made a small purchase for the provision of services. The transaction amount did not exceed the limit set for it. However, in fact, during the term of the contract, the contractor provided services for a large amount.

The customer requested that the transaction be declared invalid and that the amount of unjust enrichment be recovered. In his opinion, the purchase does not correspond, in particular, to the Law N 44-FZ. The customer also explained that the purchase of services over the limit was not planned, money is not provided in the budget.

The courts refused the customer on the following grounds:

the amount under the contract did not exceed the small purchase limit at the time of its conclusion, so the contractor could not know about the violation of Law N 44-FZ;

the customer had to make sure that the amount of services actually rendered did not exceed the contract price;

the contractor continued to provide services in good faith after exceeding the contract price, and the customer continued to consume them.

The Supreme court did not review the case.

Document: Definition of the Supreme court of the Russian Federation from 14.02.20 N 309-e With 20-802

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