Contract Authority Flashcards
1
Q
What happens if a party signs a contract with the locality that is beyond its power under the charter?
A
The contract is unenforceable as “ultra vires” (beyond the allowed powers). Sucka!
2
Q
Do high-level officials have apparent authority to enter into contracts on behalf of the locality without approval?
A
No. Parties dealing with a locality must verify the nature and extent of the authority of its agents under local ordinance and board approvals.
