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 99. The general principles applicable to the annulling of contracts do not change owing to the public character of one of the contracting parties.
In a contract between a municipal corporation and an individual or private corporation, wherein the city reserves the right to discontinue and annul the contract whenever it shall appear that the contractor has failed to comply with the terms and conditions thereof, the contract may be annulled and set aside by the municipality, if it can be shown that the said contractor has failed to comply with the terms and conditions imposed upon him.14
13 St. Paul vs. Butler, 30 Minn., 459.
Contracts with Municipal Officers. - The doctrine is well established, that municipal officers cannot make contracts with the municipality. "It is a well established and salutary rule in equity that he who is entrusted with the business of others cannot be allowed to make such business an object of pecuniary profit to himself. This rule does not depend on reasoning technical in its character and is not local in its application. It is based upon principles of reason, of morality, and of public policy.
It has its foundation in the very constitution of our nature, for it has authoritatively been declared that a man cannot serve two masters, and is recognized and enforced wherever a well-regulated system of jurisprudence prevails."15
14 Bietry vs. New Orleans, 24 La. An., 21.
15 Dillon, Mun. Corp. (3rd Ed.), Par. 444.
 
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