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Monday, 02 June 2014 17:00

Review Governing Documents Before Entering Into A Contract

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Review Governing Documents Before Entering Into a Contract

Whenever an association is renewing or entering into a new contract, there are many issues to consider.  With so much focus on finding the right company at a good price, it is easy to overlook the requirements that may exist in the declaration and bylaws.

 Some governing documents require that certain contracts be approved by the members or by a specific percentage of the board (such as 2/3 or 75%).  Other times, documents place limits on the length of term for a contract.  For example, an association’s bylaws may limit contracts to no more than one-year terms.  Such a requirement could impact many possible contracts, such as landscape contracts, management contracts, or security contracts.

 Governing documents may also require that contracts contain specific terms allowing for termination of the contract.  For example, the governing documents may require that the contract contain a provision stating that the contract can be terminated with 30 days’ notice.

 Finally, some governing documents contain specific requirements on who must sign the contract (such as the President and the Secretary).

 Associations should be mindful of these types of requirements and limitations in their governing documents so that, once the association finally finds the right company at the right price, the contract does not get challenged or invalidated over a technicality.  If your association has questions about contracts, please contact Lynn Krupnik at 480-922-9292.

Theinformation contained in thisHomeownersAssociationTip isfor informational purposesonly and isnot specific legaladviceor a substitutefor specificlegalcounsel.Readersshouldnot actupon thisinformation withoutseeking professionalcounsel.

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Additional Info

  • Author: Lynn Krupnik
Read 4225 times Last modified on Thursday, 05 June 2014 17:08
Lynn Krupnik

Ms. Krupnik graduated first in her class from Arizona State University College of Law in 1996, where she was named the ASU Alumni Association Outstanding Graduate. Ms. Krupnik also received the Inernational Academy of Trial Lawyers Award (for exceptional trial advocacy skills in Law School Clinic), John J. Ross Award (for outstanding performance in Business Association courses), CALI Excellence for the Future Award (for excellent achievement in Law School Clinic), and Order of the Coif. While at ASU, Mr. Krupnik served as a managing editor for the Arizona State Law Journal, and as a writing instructor for first year law students. After graduation, Ms. krupnik accepted a judicial clerkship with Vice Chief Justice James Moeller of the Arizona Supreme Court. Ms. Krupnik served on the Board of Directors for the Central Arizona Chapter of the Community Associations Institute for six years, and is a member of the College of Community Association Lawyers. She frequently writes and lectures on association issues. Ms. Krupnik has been an attorney with Ekmark & Ekmark since 1997, where she heads up the general counsel department and has assisted hundreds of associations in successfully addressing the variety of issues faced by associations on a daily basis.

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