act of July 3, 1943 (57 Stat. 374). For general provisions pertaning to administrative settlement of claims for damages incident to activities of the War Department or Army, see 708-1, ante. 717a. Property of foreign national; damage by operations of the Army. "5 U. S. C. 210" should be eliminated from the citation to the original text of this section, based on the act of April 18, 1918 (40 Stat. 532), and "31 U. S. C. 223a" added. The original text of this section, based on the act of April 18, 1918, supra, was expressly repealed by the act of April 22, 1943 (57 Stat. 67). The subject-matter is covered by 708c, ante. 717b. Deprivation of use of grazing lands.-That whenever use for war purposes of the public domain or other property owned by or under the control of the United States prevents its use for grazing, persons holding grazing permits or licenses and persons whose grazing permits or licenses have been or will be canceled because of such use shall be paid out of the funds appropriated or allocated for such project such amounts as the head of the department or agency so using the lands shall determine to be fair and reasonable for the losses suffered by such persons as a result of the use of such lands for war purposes. Such payment shall be deemed payment in full for such losses. Nothing herein contained shall be construed to create any liability not now existing against the United States. Act of July 9, 1942 (56 Stat. 654); 43 U. S. C. 315q. 721. Pay claims; time limit for filing.—That all officers and soldiers of the volunteer service of the United States mustered into service for the War with Spain, who were held to service in the Philippine Islands for service in the Philippine Insurrection after April 11, 1899, and after the conclusion of peace with the Kingdom of Spain, shall be entitled to the travel pay and allowance for subsistence provided in sections 1289 and 1290, Revised Statutes, as then amended and in effect, as though discharged April 11, 1899, by reason of expiration of enlistment, and appointed or reenlisted April 12, 1899, without deduction of travel pay and subsistence paid such officers or soldiers on final muster out subsequent to April 11, 1899: Provided, That no benefits shall accrue under any provision of this Act to any person whose claim is based upon the service of any such officer or soldier discharged in the Philippine Islands at his own request. Sec. 1, act of May 2, 1940 (54 Stat. 176); 10 U. S. C. 866a. The second part of the original text of this section, based on the act of December 22, 1911 (37 Stat. 49); 10 U. S. C. 866, has been eliminated as superseded by the above provision. Subsequent provisions of the act of May 2, 1940 supra, provide for method of procedure in settlement of claims and limit the benefits of the act to three years after the date of its passage. 721a. Salvage.-That a libel in personam in admiralty may be brought against the United States, or a petition impleading the United States, for damages caused by a public vessel of the United States, and for compensation for towage and salvage services, including contract salvage, rendered to a public vessel of the United States: Provided, That the cause of action arose after the 6th day of April, 1920. Sec. 1, act of Mar. 3, 1925 (43 Stat. 1112); 46 U. S. C. 781. This provision, omitted from the original text, is added as a new section. By act of July 3, 1944 (58 Stat. 723), judicial proceedings against the United States under this section, are suspended for the duration and six months thereafter when the Secretary of the Navy certifies that prosecution of such proceedings would endanger naval operations. 721b. Damage to roads.-The Commissioner of Public Roads is authorized to reimburse the several States for the necessary rehabilitation or repair of roads and highways of States or their subdivisions substantially damaged by the Army or the Navy, or both, by any other agency of the Government or by any person or contractor employed by or contracting with the Army or Navy or any other agency of the Government "in the performance of contract work in connection" with the prosecution of the war or national defense. The Commissioner is authorized on behalf of the United States to consider, ascertain, adjust, and determine any claim accruing subsequent to May 27, 1941, submitted by the State highway department of any State, in accordance with regulations prescribed by the Commissioner, for reimbursement of the cost of such rehabilitation or repair. Such amount as may be found to be due to any claimant shall be certified to Congress for payment out of appropriations that may be made by Congress therefor, together with a brief statement of the character of each claim, the amount claimed, and the amount allowed: Provided, That no claim shall be considered by the Commissioner unless notice of intention to file such claim has been presented to him within thirty days after the occurrence of the damage upon which the claim is based, except that in case of damage caused by maneuvers such notice shall be filed within thirty days after completion of such maneuvers: And provided further, That in either case such notice of damage accruing before the passage of this Act shall be filed within thirty days after the passage thereof. Sec. 10, act of Nov. 19, 1941 (55 Stat. 768); sec. 6, act of July 13, 1943 (57 Stat. 561); 23 U. S. C. 110, put up any defense that would be available against another citizen. Contributory negligence.-In action in Federal court by United States for damages caused by automobile collision, United States In action arising out of automobile colimpliedly consented to court's determining lision, whether driver of government automatters in accordance with rules applicable mobile was guilty of contributory negligence to like controversies arising between private in entering highway after having stopped for litigants, and hence affirmative defense and preceding automobile to pass was fact quessupporting evidence of contributory negli- tion for jury (Rem. Rev. St. Wash. sec. 6362gence were properly allowed. 40). U. S. v. Moscow-Idaho Seed Co. (C. C. A., 9, 1937), 92 F. (2d) 170. Where United States institutes suit for redress, not based on any infringement of its sovereignty or violation of governmental prerogative, but submits claim wholly in nature of private litigant, it waives any immunity as sovereign and adversary may 1940), 113 F. (2d) 998. 724. Priority. Overpayments received.-Persons receiving payments illegally made by a Government disbursing officer are liable to refund them. Cabel et al. v. United States (C. C. A. 1, Notes of Decisions v. Giger et al. (D. C., 1939), 36 F. Supp. 624. In general.-Under Federal statute provid-| gether. 31 U. S. C. A., secs. 191, 192. U. S. ing that whenever any person indebted to the United States is insolvent, the debt to the United States shall be first satisfied, priority extends to all classes of debts due the United States, 31 U. S. C. A., sec. 191, U. S. v. Dickson et al. (Wash., 1938), 84 P. (2d) 661. The priority given to the United States by the statute providing that whenever any person indebted to the United States is inşolvent, the debt due the United States shall be first satisfied, cannot be impaired or superseded by State law. 31 U. S. C. A., sec. 191. Id. The statute giving debts due the United States priority deals entirely with living insolvent persons and deceased debtors whose estates are insufficient to pay debts due from the deceased. 31 U. S. C. A., sec. 191. Id. The statute relating to priority of debts owed to the United States does not create a lien, but merely gives priority to claims of the United States after legal title has passed from debtor. 31 U. S. C. A., sec. 191. Id. Taxes.-The claim of the United States for taxes, penalties, and interest due it on motor fuels manufactured and sold by insolvent refining company was superior to claim of the State of Texas for motor fuel taxes. Vernon's Ann. Civ. St. art. 7065a-7; The statute giving debts of the United States priority, and statute providing for personal liability of an executor, administrator, or assignee who pays debt of person or estate for whom he acts before satisfying 31 U. S. C. A. sec. 191. State et al. v. Nix debts due United States from such person et al. (1941), 314 U. S. 480; reversing (Tex., or estate, were required to be construed to- 1940), 138 S. W. (2d) 924. CHAPTER 12 CONTRACTS Authority and appropriations, 726. In general, 727. Exceptions, 727a. Contractors: Employment of aliens, 729a. Political activities, 729b. Execution; in general, 730. Extra expense; jurisdiction Claims, 733. Anti-Rebate Act, 740. Bituminous Coal Act, 741. Cost-plus contracts for public works projects, 742a. Eight-hour law (civil), 743. Eight-hour law (penal), 744. Suspension of Eight-hour laws in emergency, 745. of Court of Vinson Act; aircraft and 745a. Filing in returns office, Interior Department, In restraint of trade, 745b. 734. Transfer of contract, 739. 726. Authority and appropriations. Bacon-Davis. Act, 746. appurtenances, Executive Order No. 8802, June 25, 1941, as amended by Executive Orders No. 8823, July 18, 1941, No. 9111, March 25, 1942, and No. 9346, May 27, 1943 reaffirmed the policy of full participation in the defense program by requiring all contracting agencies of the Government to include in all defense contracts hereafter made by them a provision obligating the contractor not to discriminate against any worker because of race, creed, color, or national origin. By letter of November 5, 1943, the President advised the Attorney General that the provisions of Executive Order No. 9346, requiring the insertion in Government contracts of a provision regarding discrimination, are mandatory and should be inserted in all Government contracts and the order should be so construed by all Government contracting agencies. (F. R. No. 10, 1943, page 15419.) Notes of Decisions To facilitate reference and allocation, Roman numerals have been assigned to the general subject-heads and Arabic numerals to the minor subdivisions thereof, as shown below. These numerals will be used hereafter to indicate subject-matter. I. REQUISITES AND VALIDITY I-1. Authority to execute.-Where bid for construction of frame dwelling at Coast Guard station was accepted by the Government on form of acceptance printed at the bottom of bid stating that formal contract was not required to be executed when such form was used, there existed a "bilateral contract" of the same force and effect as if a formal contract had been written out and signed by the parties. U. S. v. Conti (C. C. A. 1, 1941), 119 F. (2d) 652. I-1a. Beyond fiscal year.-Under R. S. 3732 and 3679 no contract for the rental of property can be entered into by the Government for more than 1 year and where a contract is made for a longer term of years, an option has to be exercised before the beginning of the next fiscal year. Brownstein-Louis Co., a corp., v. U. S., 90 Ct. Cl. 1; certiorari denied (1939), 310 U. S. 632. IV. CONSTRUCTION OF TERMS IV-1. In general.-Where an instrument is drafted and prepared entirely by one of the parties thereto and is specific in its detailed requirements, subsequent doubts as to the meaning and applicability of the language and provisions thereof to definite facts, conditions, situations, and circumstances, should not be interpreted and construed in favor of the party who drafted and prepared such instrument but, on the contrary, in such cases, the provisions of such instrument should, in case of doubt, be interpreted more favorably to the other party who did not and could not have anything to say' as to the language and provisions of the instrument as prepared. Callahan Construction Co. v. U. S. (1940), 91 Ct. Cl. 539. Terminal Warehouses, Inc. v. U. S. (1941), 92 Ct. Cl. 401. V. CONTRACT PRICE V-3. Defective performance accepted.-The cost to the defendant of repairs and changes which were necessary to make a manufactured article conform to the specification of the contract may be deducted from the contract price as such repairs and changes did not constitute an unwarranted deviation from the terms of the contract and specifications in remedying and correcting the defects found to exist in the article upon delivery. B. F. Sturtevant Co. v. U. S. (1939), 90 Ct. Cl. 93. VI. FRAUD Where it is established that in the evidence presented by the plaintiffs to establish their claim against the defendant fraud was attempted, it is held that under the statute any rights which plaintiffs might have had in the absence of such attempt became forfeited to the defendant. Mervin Contracting Corp. v. U. S. (1941), 94 Ct. Cl. 81. A cause of action in quantum meruit, where fraud is attempted, is no more enforceable than a cause of action on an express contract. (Globe Indemnity Co. V. United States, 84 C. Cls. 587 cited.) Id. Proceeding referred by Congress to the Court of Claims under sec. 151, Judicial Code, to determine whether a contractor has a meritorious claim against the United States. The Government received and retained the benefit of the work and the materials furnished under a certain contract. It sought to avoid payment therefor on the ground of fraud. Held: Plaintiff has no claim against the United States either at law or in equity. Unlike a private suitor, the United States is not required to pay the value of the labor and material as a condition to relief against the fraud, inasmuch as the fraud involved not only pecuniary loss to the United States and corruption of its public officials but was in Where there are two clauses in a contract defiance of the laws of Congress and resulted in any, respect conflicting, the clause which in the defeat of the declared policy of Conis specially directed to a particular matter gress concerning the national safety. It is controls in respect thereto over a clause for Congress only to say whether or not this which is general in its terms, although shall be forgiven and the wrongdoer restored within its general terms the particular may to the status quo ante. Pan American Petrolbe included. Id. eum and Transport Co. v. U. S. (1944), 101 Ct. Cl. 114. Where a contract is ambiguous, parol evidence is admissible to show the intent of the parties and when so shown this intent becomes a part of the contract. Crooks VII. LIQUIDATED DAMAGES VII-3. Computation. (3d paragraph.) Terminal Warehouses, Inc. v. U. S. (1941), ufacturers' Sales Co. v. U. S. (1937), 85 Ct. Change citation to read: International Man 92 Ct. Cl. 401. IV-4. Trade customs.-An express provision in a written contract cannot be varied or modified by custom or usage but where the provisions of the contract are ambiguous evidence of custom or usage may be received to show the intention of the parties. Crooks Cl. 683; certiorari denied (1938), 303 U. S. 651. Where a provision of the contract provides for an apportionment of liquidated damages when part of the buildings are completed within the time specified and part are not so completed, it is held that such provision has |