(1) Insofar as the
formalities of making, varying or discharging a contract are concerned, a
person acting under the authority of a local government may make, vary or
discharge a contract in the name of or on behalf of the local government in
the same manner as if that contract was made, varied or discharged by a
natural person.
(2) The making,
variation or discharge of a contract in accordance with subsection (1) is
effectual in law and binds the local government concerned and other parties to
the contract.
(3) Subsection (1)
does not prevent a local government from making, varying or discharging a
contract under its common seal.
[Section 9.49B inserted: No. 17 of 2009 s. 43.]