This section is from the book "Popular Law Library Vol8 Partnership, Private Corporations, Public Corporations", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
Section 98. Municipal corporations, by-charter or statute, are usually required to publish for a certain prescribed length of time, notice of their purpose to enter into a contract and invite bids or proposals and award the same to the lowest bidder under prescribed conditions.
In some jurisdictions, it is required that contracts involving the expenditure of more than a stated amount shall be made after advertisement for bids or proposals.10
It has been held, that where the municipal authorities are required by charter or incorporating act to award contracts to the lowest bidder, a contract made in contravention of this requirement is illegal.11
Although these salutary provisions have, at times, been circumvented by wily and unscrupulous political contractors in collusion with dishonest officials, yet, on the whole, they have served, in a measure, to prevent favoritism and corruption.
It is held that a certain discretion is left to the awarding officers, which will not be controlled by the courts.12
Contracts with Attorneys. - The prevailing decisions seem to uphold the power of a municipal corporation to employ an attorney or counsel to guard its interests in any litigation which concerns or affects it.
In Town of New Athens vs. Thomas et al., 82
10 Phelps vs. New York, 112 N. Y., 216.
11 Brady vs. Mayor, etc., of New York, 30 N. Y., 312. 12 Kelly vs. Chicago, 62 111., 279; The provision that contracts for municipal work shall be given to the lowest responsible bidder does not have sole reference to the mere pecuniary liability of the contractor, but involves a discretion on the part of the municipal authorities in the selection of the agency best fitted for the performance of the work required. Frame vs. Felix, 167 Pa. St., 47.
III., 259, which was a suit by appellees to recover the value of their services rendered to appellant, the sole defense being that appellees had not been employed by the town in its corporate capacity, the Supreme Court, after stating the general rule, as contended for by appellant, said: "Indeed, every step taken by appellees in the adjustment of the matter in controversy was with the full knowledge, approbation and consent of the president and common council of the town. Can the town now be heard to say, after it has received the benefit of appellees' skill and labor in its behalf, and after it has recognized the employment by various corporate acts, that appellees' were not employed? To so hold would neither be just nor in harmony with the current of authority on the subject."
Contractor's Bond. - A municipal corporation, in contracting for a public work, usually requires of the contractor a bond, with sufficient security, conditioned, that he shall pay all just claims for all labor performed or material furnished for or on account of said contract, as they shall become due.13
 
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