(1)Section 2(1) does not apply for the purposes of determining any question arising on—
(a)an application for judicial review, or
(b)an audit review,
as to whether a local authority had power to enter into a contract (or exercised any power properly in entering into a contract).
(2)Section 2(1) has effect subject to any determination or order made in relation to a certified contract on—
(a)an application for judicial review, or
(b)an audit review.
(3)Where, on an application for judicial review or an audit review relating to a certified contract entered into by a local authority, a court—
(a)is of the opinion that the local authority did not have power to enter into the contract (or exercised any power improperly in entering into it), but
(b)(having regard in particular to the likely consequences for the financial position of the local authority, and for the provision of services to the public, of a decision that the contract should not have effect) considers that the contract should have effect,
the court may determine that the contract has (and always has had) effect as if the local authority had had power to enter into it (and had exercised that power properly in entering into it).
(4)In this section and sections 6 and 7 references to an application for judicial review include any appeal (or further appeal) against a determination or order made on such an application.
Commencement Information
I1S. 5 wholly in force; s. 5 not in force at Royal Assent see s. 12(2); s. 5 in force at 30.12.1997 insofar as it applies to England and Wales by S.I. 1997/2843, art. 2(2); s. 5 in force at 1.1.1998 insofar as it applies to Scotland by S.I. 1997/2878, art. 2(2)