4.27 The Joint Committee is not a legal entity separate from the constituent authorities. Therefore, it cannot enter a contract in its own name, but can agree that each of the constituent authorities will enter the contract (if this decision has been delegated to the Joint Committee). In practice with this model, each constituent authority will enter the contract, but the IAA will set out how contractual liabilities are shared between the constituent authorities and how the constituent authorities indemnify each other for any losses which they cause each other.
4.28 As an alternative, one authority can enter the contract as agent for each of the other constituent authorities, again protecting itself by means of an IAA. Or one authority can enter the whole contract in its own name, and then sub-contract the liabilities and responsibilities down to each of the other constituent authorities.
4.29 In terms of end legal liabilities, there are really no differences between these arrangements other than form and it will be for the authorities, with appropriate advice, to decide which approach best suits their own circumstances. In determining this, it could be appropriate to take account of the views of the prospective contractor, its funders the accepted practice in that market place, the nature of the contracts and established ways of working between the authorities.