Plain language law

New Zealand law explained for everyone

Charitable Trusts Act 1957

Incorporation of trust boards

19: Form of contracts

You could also call this:

“How boards can make different types of contracts”

When you’re part of a board, you can make contracts in different ways. If you usually need a special document called a deed for a contract, you can write it down and put the board’s official seal on it. You might need two trustees or two members of the board’s committee to sign it too, depending on the board’s rules.

For contracts that usually need to be written down and signed, someone acting for the board can write and sign these. If you can usually make a contract just by talking about it, someone acting for the board can do this too.

Any contract you make following these rules will work just like a normal contract. It will apply to the board, anyone who takes over from the board, and everyone else involved in the contract.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM309937.

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Part 2 Incorporation of trust boards

19Form of contracts

  1. Contracts on behalf of a board may be made as follows:

  2. a contract which if made by private persons would be by law required to be by deed may be made on behalf of the board in writing under the common seal of the board, attested in such manner as may be provided in the rules or other documents providing for the constitution of the society that is incorporated as the board or of which the members of the board are the trustees, or (in the absence of any such provision) attested by at least 2 of the trustees who are incorporated as the board or by at least 2 members of the committee or other governing body of the society that is incorporated as the board:
    1. a contract which if made between private persons would be by law required to be in writing, signed by the parties to be charged therewith, may be made on behalf of the board in writing signed by any person acting under its authority, express or implied:
      1. a contract which if made between private persons would by law be valid although made by parol only, and not reduced into writing, may be made by parol on behalf of the board by any person acting under its authority, express or implied.

        1. A contract made according to this section shall be effectual in law, and shall bind the board and its successors and all other parties thereto.

        Compare
        • 1908 No 164 s 11
        • 1955 No 63 s 42