Contract Authority Flashcards
When may a local government enter into a contract?
If not outside of their authority (e.g., operating a lottery if illegal in VA)
* This would be ultra vires and unenforceable, and no implied contract recovery is permitted in such cases
What if the manner of contract is prescribed?
Where manner of making or awarding K is prescribed–by state law or even local ordinance–that proceudre must be followed
* If required process NOT followed, K will be held void unless court finds it was merely suggested, not mandatory, procedure
What must parties dealing with locality verify before entering into K with locality?
The nature and extent of the authority of its agents, even its top officials, under local ordinances and board approvals
* Even arrangements that are within the locality’s powers are unenforceable if they have not been properly approved by vote of its governing body (i.e., “apparent authority” not enough to create binding K)
