Contract Authority Flashcards
power to do what is purpose of contract must be shown
anyone contracting with a locality does so at his own risk if the power to engage in particular activity is lacking or locality has exceeded power granted by the legislature. a contract beyond the scope of the locality’s power is ultra vires and is unenforceable. no implied contract recovery is permitted
where manner of contracting is prescribed
if manner of making or awarding contract is prescribed by state law or ordinance, that procedure must be followed. if required process was not followed, the contract will be held void unless the court finds that it was merely a suggested procedure
approval of contracts and actions of locality’s agents
parties dealing with a locality must verify the nature and extent of the authority of its agents, even its top officials, under local ordinances and board approvals. even arrangements within locality’s powers are unenforceable if they haven’t been properly approved by a vote of the governing body. apparent authority is not enough to create binding contract
