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Crown Entities Act 2004

Operation of Crown entities - Statutory entities - Dealings with third parties by statutory entities

127: Method of contracting

You could also call this:

"How a government organisation can make a formal agreement or contract"

When you enter into a contract or agreement for a statutory entity, it can be done in certain ways. You can sign a written contract on behalf of the entity if you are two or more of its members, or if you are the sole member of a corporation sole. You can also sign a contract if you are an attorney appointed by the entity under section 129(1).

If a contract normally needs to be in writing when an individual enters into it, a statutory entity can enter into it in writing if you are acting with the entity's authority. If a contract does not need to be in writing when an individual enters into it, a statutory entity can enter into it in writing or orally if you are acting with the entity's authority.

This applies to any contract or agreement, no matter where it was entered into or what law governs it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330394.

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Part 3Operation of Crown entities
Statutory entities: Dealings with third parties by statutory entities

127Method of contracting

  1. A contract or other enforceable obligation may be entered into by a statutory entity as provided in this section.

  2. An obligation that, if entered into by an individual, is required to be by deed may be entered into on behalf of a statutory entity in writing, signed under the name of the entity,—

  3. by 2 or more of its members or, if the entity is a corporation sole, by the sole member; or
    1. by 1 or more attorneys appointed by the entity under section 129(1).

      1. An obligation that, if entered into by an individual, is required to be in writing may be entered into on behalf of a statutory entity in writing by a person acting under the entity's express or implied authority.

      2. An obligation that, if entered into by an individual, is not required to be in writing may be entered into on behalf of a statutory entity in writing or orally by a person acting under the entity's express or implied authority.

      3. This section applies to a contract or other obligation—

      4. whether or not that obligation was entered into in New Zealand; and
        1. whether or not the law governing that obligation is the law of New Zealand.

          Notes
          • Section 127(2)(b): amended, on , by section 32 of the Crown Entities Amendment Act 2013 (2013 No 51).