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(1)Except in so far as section 7 below otherwise provides, a local authority may enter into a works contract in such circumstances and on such terms, having regard to the duty imposed on them by section 16 below, as they consider appropriate.
(2)Notwithstanding anything in the 1970 Act or in any other enactment relating to such an agreement as is mentioned in section 5(1)(c) above, a boyd which is a public body within the meaning of the 1970 Act may not (whether as the works authority or as the body fr whom any works are to be carried out) enter into a contract which in any respect contravenes any limitation imposed by section 7 below.
(3)In any case where—
(a)before the appointed day, and whether before or after the passing of this Act, a local authority entered into a maintenance agreement, and
(b)the circumstances in which or the terms on which the maintenance agreement was entered into are such that, having regard to section 7 below and to any regulations made under that section, it would not be lawful for them to enter into a similar agreement immediately after the appointed day,
then, at the expiry of the period of twelve months beginning on the appointed day, it shall cease to be lawful for the maintenance agreement to be carried out.
(4)Accordingly, if the maintenance agreement is governed by English Law and the parties to it do not make other provision before the expiry of that period of twelve months, the M1Law Reform (Frustrated Contracts) Act 1943 shall apply to the maintenance agreement with effect from the expiry of that period.
Marginal Citations
M11943 c. 40 (30).
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