Jered Contracting Corp. v. New York City Transit Authority

[22 N.Y.2d 187 Page 189] Plaintiff corporation, engaged in the business of painting, entered into a written contract with defendant, New York City
Transit Authority (hereinafter referred to as the Authority), for the painting of certain work shops and other areas at the
207th Street Yard of the Independent Subway Division, at a contract price of $149,000. The contract was awarded after competitive
bidding and, as required by law (Public Authorities Law, § 2604), plaintiff certified that its bid had been arrived at independently
and had been submitted to the Authority without collusion with any other bidder.* In compliance with section 2601 of the
Public Authorities Law, the contract contained a clause providing that it could be cancelled or terminated by the Authority
upon refusal of an officer of the contractor when called before a Grand Jury to testify concerning any contract or transaction
had with the State or any of its political subdivisions or any public authority, or to sign a waiver of immunity or answer
relevant questions with respect thereto.