Cite as: 530 U. S. 604 (2000)
Opinion of the Court
uty Solicitor General Wallace, David M. Cohen, Douglas N. Letter, Thomas M. Bondy, and Mark A. Melnick.†
Justice Breyer delivered the opinion of the Court. Two oil companies, petitioners here, seek restitution of $156 million they paid the Government in return for lease contracts giving them rights to explore for and develop oil off the North Carolina coast. The rights were not absolute, but were conditioned on the companies' obtaining a set of further governmental permissions. The companies claim that the Government repudiated the contracts when it denied them certain elements of the permission-seeking opportunities that the contracts had promised. We agree that the Government broke its promise; it repudiated the contracts; and it must give the companies their money back.
I
A
A description at the outset of the few basic contract law principles applicable to this action will help the reader understand the significance of the complex factual circumstances that follow. "When the United States enters into contract relations, its rights and duties therein are governed generally by the law applicable to contracts between private individuals." United States v. Winstar Corp., 518 U. S. 839,
†J. Berry St. John, Craig Wyman, G. William Frick, David T. Deal, and Douglas Morris filed a brief for the American Petroleum Institute as amicus curiae urging reversal.
A brief of amici curiae urging affirmance was filed for the State of California et al. by Bill Lockyer, Attorney General of California, Richard M. Frank, Chief Assistant Attorney General, J. Matthew Rodriquez, Senior Assistant Attorney General, and John A. Saurenman, Deputy Attorney General, and by the Attorneys General for their respective States as follows: Michael F. Easley of North Carolina, W. A. Drew Edmondson of Oklahoma, Hardy Myers of Oregon, Charlie Condon of South Carolina, and Christine O. Gregoire of Washington.
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