39. (1) All contracts made by or on behalf of a Union Parishad shall be-
(a) in writing and expressed to be made in the name of the Union Parishad;
(b) executed in such manner as may be prescribed; and
(c) reported to the Union Parishad by the Chairman at the meeting next following the execution of the contract.
(2) A Union Parishad may, by resolution, lay down the procedure that shall regulate the making of various contracts, and in the execution of contracts, the Chairman shall act in accordance with such resolution.
(3) No contract executed otherwise than in conformity with the provisions of this section shall be binding on the Union Parishad.
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