McPhail v. United States

Plaintiffs sue for damages, including out-of-pocket expenses and loss of profits, which they say resulted from defendant’s refusal to allow plaintiffs to perform a contract duly entered into between the parties. The Government defends, first, on the ground that there was no valid contract between it and the plaintiffs; and, second, that even if there *180was a valid contract, the contract was annulled pursuant to 41 U.S.C. § 151 when plaintiffs transferred an interest therein to another party.

The alleged contract in suit was to furnish meals to Mexican laborers who were brought into this country…