Classification and management of reserves - Management and control of reserves
33: Form of contracts of boards
You could also call this:
"How boards can make contracts with others"
When you make a contract for a board, it can be done in different ways. If a contract normally needs to be written and signed by the people involved, the board's contract can be written and signed by someone who has the board's permission. This permission can be clearly stated or implied, meaning it is understood without being directly stated.
If a contract can be made verbally between private people, it can also be made verbally on behalf of the board. In this case, the person making the contract must be acting with the board's permission, which can be express or implied.
You should know that the board's contracts can be made by people who are acting under the board's authority, and the way the contract is made depends on what is normally required for that type of contract.
"Board members are not personally responsible for the board's actions or debts if they act honestly."
Part 3Classification and management of reserves Management and control of reserves
33Form of contracts of boards
A contract which, if made by private persons, is not enforceable unless made in writing signed by the persons to be charged therewith may be made on behalf of the board in writing signed by any person acting under its authority, express or implied.
A contract which, if made by private persons, may be made orally, may be made orally on behalf of the board by any person acting under its authority, express or implied.
