41 Control of contracts.E+W
(1)This section applies, subject to subsection (5) below, to any contract which, if a relevant institution were to become an institution within the further education sector, would or might on or after the operative date bind the governing body of the institution.
(2)Except with the appropriate consent, a local authority shall not after the passing of this Act enter into a contract to which this section applies.
(3)If at any time after 21st March 1991 and before the passing of this Act a local authority have entered into a contract which would have been in contravention of the provisions of subsection (2) above if they had then been in force, the same consequences shall follow as if those provisions had been contravened by the local authority.
(4)In relation to any contract the appropriate consent is—
(a)the consent of the existing governing body of the institution, and
(b)if (on the assumption in subsection (1) above) the contract will require the governing body of the institution to make payments on or after 1st April 1993 amounting in aggregate to £50,000 or more, the consent of the Secretary of State.
(5)This section does not apply to—
(a)a works contract (within the meaning of Part III of the M1Local Government, Planning and Land Act 1980) which is entered into in accordance with section 7 of that Act, or
(b)a works contract (within the meaning of Part I of the M2Local Government Act 1988) which is entered into in accordance with section 4 of that Act.
(6)Any consent for the purposes of this section may be given either in respect of a particular contract or in respect of contracts of any class or description and either unconditionally or subject to conditions.
(7)Any signification of consent for the purposes of this section, or of such consent subject to conditions, given by the governing body of an institution or the Secretary of State before the passing of this Act in respect of any contract to which this section applies shall be treated for the purposes of this section as a consent, or a consent subject to the conditions, given under this section.
(8)A contract shall not be void by reason only that it has been entered into in contravention of this section and (subject to section 42 of this Act) a person entering into a contract with a local authority shall not be concerned to enquire whether any consent required by this section has been given or any conditions of such a consent have been complied with.
(9)Where there is an obligation under a contract to which this section applies to provide any benefit other than money, subsection (4)(b) above shall apply as if the obligation were to pay a sum of money corresponding to the value of the benefit to the recipient.
(10)This section does not apply to a contract to dispose of land or to grant or dispose of any interest in land.
Commencement Information
I1S. 41 wholly in force at 6.5.1992 see s. 94(3) and S.I. 1992/831, art. 2, Sch. 1
Marginal Citations