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Electricity Industry Act 2010

Separation of distribution from certain generation - Enforcement and general provisions - Application of other Acts

93: Illegal contracts

You could also call this:

“Agreements that might break rules are still legal and can be cancelled”

If you make a legal agreement that follows the rules, it doesn’t become illegal or unenforceable just because doing what the agreement says might break a rule in this part of the law.

If you make an agreement that breaks a rule in this part of the law, the people who didn’t break the rule can choose to cancel the agreement. They can do this by writing a letter to the other person in the agreement. They have to do this within one month of finding out that the agreement broke a rule.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2634491.

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Part 3 Separation of distribution from certain generation
Enforcement and general provisions: Application of other Acts

93Illegal contracts

  1. An agreement lawfully entered into does not become illegal or unenforceable by any party by reason of the fact that its performance is in breach of a provision of this Part.

  2. An agreement entered into in breach of a provision of this Part is voidable at the option of any party to the agreement who is not in breach of a provision of this Part by notice in writing to the other party to the agreement at any time within 1 month after the innocent party has notice that the agreement is in breach of a provision of this Part.

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Notes
  • Section 93 heading: amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).