654 - Legal Nature of Grant Agreements

Although there continues to be debate about whether a grant agreement constitutes a legal contract, courts have recognized that a grantee’s acceptance of grant terms and conditions gives rise to contractual rights and obligations. As early as 1866, the U.S. Supreme Court held that: It is not doubted that the grant by United States to the state upon conditions, and the acceptance of the grant by the state, constituted a contract. All the elements of a contract met in the transaction - competent parties, proper subject matter, sufficient consideration, and consent of minds. This contract was binding upon the state. … McGehee v. Mathis, 71 U.S. 143, 155 (1866). More than a… Read More