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Commerce Act 1986

Authorisations and clearances - Restrictive trade practices

59: Contracts or covenants subject to authorisation not prohibited under certain conditions

You could also call this:

"Some contracts are allowed if you follow the rules and get permission first."

Illustration for Commerce Act 1986

You can enter into certain contracts or make covenants if you follow some rules. These contracts or covenants must be subject to a condition that they do not come into force unless authorisation is granted. You must apply for this authorisation within 15 working days after the contract is entered into or the covenant is made.

You can make a contract or covenant that is subject to authorisation under section 36 or 36A if you meet the requirements. The contract or covenant must not come into force unless authorisation is granted. You must apply for authorisation within 15 working days.

If you get interim authorisation under section 65AAA, the contract or covenant can come into force. But it will cease to have effect if the interim authorisation stops or you do not get full authorisation under section 58. This means you must still follow the rules and get full authorisation for the contract or covenant to remain in force.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM89037.

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Part 5Authorisations and clearances
Restrictive trade practices

59Contracts or covenants subject to authorisation not prohibited under certain conditions

  1. Despite anything in this Act, but subject to section 59B,—

  2. a contract to which section 27 or 30(1)(a) applies may be entered into if the requirements of subsection (2) are complied with:
    1. a contract the entry into which is, or the giving effect to a provision of which would be, conduct to which section 36 or 36A applies may be entered into if the requirements of subsection (2) are complied with:
      1. a covenant to which section 28 or 30(1)(ab) applies may be required to be given, or may be given, if the requirements of subsection (2) are complied with:
        1. a covenant the requiring of the giving of which, or the giving of which, is conduct to which section 36 or 36A applies may be required to be given, or may be given, if the requirements of subsection (2) are complied with.

          1. For the purposes of subsection (1), the requirements that must be met are,—

          2. in the case of a contract described in subsection (1)(a), that the contract is subject to a condition that the provision does not come into force unless and until authorisation is granted to give effect to it and that an application must be made for that authorisation within 15 working days after the contract is entered into:
            1. in the case of a contract described in subsection (1)(aa), that the contract is subject to a condition that the contract does not come into force unless and until authorisation is granted to engage in the conduct to which section 36 or 36A applies and that an application must be made for that authorisation within 15 working days after the contract is entered into:
              1. in the case of a covenant described in subsection (1)(b) or (c), that the covenant is subject to the condition that it does not have effect unless and until authorisation is granted to give effect to it, or to engage in the conduct to which section 36 or 36A applies, as the case may be, and that application must be made for that authorisation within 15 working days after the covenant is made.

                1. The condition referred to in subsection (2)(a), (aa), or (b) may provide for the provision or the contract to come into force, or the covenant to have effect, as the case may be, on the basis of an interim authorisation being granted under section 65AAA, but only if the condition also provides for the provision, contract, or covenant to cease to have effect immediately if—

                2. the interim authorisation ceases to be in force; and
                  1. the authorisation under section 58 has not been granted.

                    Notes
                    • Section 59: substituted, on , by section 13 of the Commerce Amendment Act 2001 (2001 No 32).
                    • Section 59(1)(a): amended, on , by section 27(1) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(1)(a): amended, on , by section 32(2)(a) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
                    • Section 59(1)(aa): inserted, on , by section 27(2) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(1)(b): amended, on , by section 27(3) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(1)(c): inserted, on , by section 27(4) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(2)(a): replaced, on , by section 32(2)(a) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
                    • Section 59(2)(a): amended, on , by section 27(5) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(2)(aa): inserted, on , by section 27(6) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(2)(b): amended, on , by section 27(7)(a) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(2)(b): amended, on , by section 27(7)(b) of the Commerce Amendment Act 2022 (2022 No 11).
                    • Section 59(3): replaced, on , by section 27(9) of the Commerce Amendment Act 2022 (2022 No 11).