Education Act 1996

206 Control of contracts

(1) Where the procedure for acquisition of grant-maintained status is pending in relation to any school, this section applies to any contract which, if the proposals for acquisition of grant-maintained status were implemented, would or might bind the governing body incorporated under Chapter II.

(2) Except with the appropriate consent, a local authority shall not enter into a contract to which this section applies.

(3) In the case of a contract entered into after the proposals have been approved by the Secretary of State, “the appropriate consent” is that of the new governing body.

(4) In relation to any other contract, “the appropriate consent” is—

(a) the consent of the existing governing body, and

(b) if (on the assumption set out in subsection (1)) the contract will require the governing body incorporated under Chapter II to make payments amounting in aggregate to £15,000 or more, the consent of the Secretary of State.

(5) Any consent for the purposes of this section may be given either in respect of a particular contract or in respect of contracts of any class or description and either unconditionally or subject to conditions.

(6) A contract shall not be void by reason only that it has been entered into in contravention of this section and (subject to section 207) a person entering into a contract with a local authority or governing body shall not be concerned to enquire whether any consent required by this section has been given or any conditions of such a consent have been complied with.

(7) Where there is an obligation under a contract to which this section applies to provide any benefit other than money, subsection (4)(b) shall apply as if the obligation were to pay a sum of money corresponding to the value of the benefit to the recipient.

(8) This section does not apply to—

(a) a works contract (within the meaning of Part III of the [1980 c. 65.] Local Government, Planning and Land Act 1980) which is entered into in accordance with section 7 of that Act,

(b) a works contract (within the meaning of Part I of the [1988 c. 9.] Local Government Act 1988) which is entered into in accordance with section 4 of that Act,

(c) a contract to dispose of land (within the meaning of section 204) or to grant an option to acquire land or an interest in land, or

(d) a contract of employment.

(9) The Secretary of State may by order substitute for the sum specified in subsection (4) (whether as originally enacted or as previously amended by an order under this subsection) such sum as may be specified in the order.