Contracts

In the course of a year, a PTA will enter into a variety of contracts.

The PTA assumes the responsibility and the legal obligation to comply with the terms and conditions of the contract including any payment specified by the contract.

Whether an activity is or is not a financial success or a PTA has insufficient funds to meet its obligations, or best practices were not followed, does not affect the legal requirements to fulfill the terms of the contract.

Best practice—for a contract to be valid, the following conditions must be met:

• The person negotiating the contract has the authority to do so.
• The board of directors has reviewed and authorized the contract.
• The terms and conditions of the contract, including the fine print, are understood and agreeable to the PTA.
• Have the contractor/vendor submit a W-9 form at the time of signing the contract so you will have the information necessary to determine whether a 1099 is required, and if so, to complete it.
• The contract bears the signature of the president.
• The PTA can comply with all the terms of the contract.