Effects of amalgamation of local governments on active contracts

Introduction

Local Governments undergoing amalgamation are likely to have active contracts for the supply of goods and services on foot at the date of Commencement of the new Local Government.

The term Commencement in this article means the day of commencement of any amalgamation order made by the Governor on the recommendation of the Minister pursuant to section 2.1 of the Local Government Act 1995 (WA) (the Act).

The position of a Local Government in relation to a contract for goods and services is going to depend on the nature of the order made under section 2.1 of the Act. We have set out below some scenarios.

Where a Local Government takes over the whole of the area of an abolished District