Regents of the University System v. Blanton

1. A State, or any of its departments entering into contracts, lays aside its attributes of sovereignty, and binds itself substantially as one of its citizens does when lie enters into a contract, and, in general, its contracts are interpreted as the contracts of individuals are, and are controlled by the same laws. Ohio L. Ins. Co. v. Debolt, 16 How. (U. S.) 416 (14 L. ed. 997); 42 L. R. A. (N. S.) 117, notes. Where there is an act of the State legislature authorizing a contract by a State department, the courts have power to enforce the contract against the State. Carr v. State, 127 Ind.…