Part 1Structural and boundary change in England
Chapter 2Control of disposals etc
I128Contraventions of direction
1
A disposal made in contravention of a direction under section 24 is void.
2
A contract entered into by an authority (“the old authority”) in contravention of a direction under section 24 is not enforceable against a successor.
3
In subsection (2) a “successor” means a local authority (other than the old authority)—
a
which is established by an order under section 7 or 10; and
b
whose area consists of or includes the whole or part of the area of the old authority.
4
A contract which apart from this subsection would be a certified contract for the purposes of the Local Government (Contracts) Act 1997 (c. 65) is not a certified contract for those purposes if it is entered into in contravention of a direction under section 24.
5
If an authority includes financial reserves in a calculation under section F131A(3) of the Local Government Finance Act 1992 (c. 14) in contravention of a direction under section 24, the authority is to be treated for the purposes of section 30(8) of that Act as not having made the calculations required by Chapter 3 of Part 1 of that Act.
6
If an authority includes financial reserves in a calculation under section F242A(3) of that Act in contravention of a direction under section 24, the authority is to be treated for the purposes of section 40(7) of that Act as not having made the calculations required by Chapter 4 of Part 1 of that Act.