Local Government Contracting: Common Pitfalls
One of the key powers granted to local governments under the Community Charter and the Local Government Act is the power to contract. However, local governments are not free to contract in the same way as a business corporation or an individual. The power is subject to various conditions and limitations which if not observed may render a contract void or result in liability. The following is a discussion of some of the most important things to consider prior to a local government signing an agreement.