Section 6 in Punjab Municipal (Executive Officer) Act, 1931
6. Contracts.
(1)Every contract to be entered into by the committee shall be made on behalf of the committee by the Executive Officer : Provided that the Executive Officer shall be bound by any resolution of the Committee fixing terms, rates or maximum prices in the particular case or any class of cases.(2)No contract affecting immovable property or involving a sum exceeding such sum as the committee may fix shall be made by the Executive Officer unless it has been sanctioned by the committee.(3)Every contract made by the Executive Officer shall be reported to the committee within fifteen days of its being made.(4)Every contract made by the Executive Officer on behalf of the committee shall be entered into in such manner and form as would bind him if it were. made on his own behalf and may in like manner and form be varied or discharged :Provided that every contract involving a sum exceeding one hundred rupees or affecting immovable property shall be in writing and shall be sealed with the common seal of the committee.(5)The common seal of the committee shall remain in the custody of the Executive Officer and shall not be affixed to any contract or other instrument except in the presence of the Executive, Officer who shall sign the contract in taken that the same was sealed in his presence.,(6)No contract executed otherwise than as provided in this section shall be binding on the committee :Provided that, when work is given on contract at unit rates and the number of units is not precisely determinable the contract shall not be deemed to contravene the provisions of this section merely by reason of the fact that the pecuniary limits prescribed in 'sub-section (2) or sub-section (4) are eventually. exceeded.
