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Incorporated Societies Act 2022

Administration of societies - Other administration matters - Authority to bind society

123: Method of contracting

You could also call this:

"How a society can make a contract"

Illustration for Incorporated Societies Act 2022

You can enter into a contract for a society in different ways. If a contract needs to be in a special form called a deed, the society can sign it in writing. This can be done by two or more officers of the society, or by someone the society chooses, whose signature must be witnessed. You can also enter into a contract that needs to be in writing by having someone act on the society's behalf. This person must have the society's permission to do so. If a contract does not need to be in writing, you can enter into it in writing or by talking, as long as you have the society's permission. A society can also use its common seal, if it has one, when entering into a contract. This applies to contracts made in New Zealand or elsewhere, and regardless of which country's law applies to the contract. You can enter into a contract through an attorney appointed by the society under section 124.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS101010.

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122: Society may use abbreviation, or

"Your society can use a shorter name when signing contracts if it's not confusing."

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124: Attorneys, or

"Appointing someone to make decisions for your society"

Part 3Administration of societies
Other administration matters: Authority to bind society

123Method of contracting

  1. A contract or other enforceable obligation may be entered into by a society as follows:

  2. an obligation that, if entered into by a natural person, would, by law, be required to be by deed may be entered into on behalf of the society in writing signed under the name of the society by—
    1. 2 or more officers of the society; or
      1. if the constitution of the society so provides, an officer, or other person or class of persons, whose signature or signatures must be witnessed; or
        1. 1 or more attorneys appointed by the society under section 124:
        2. an obligation that, if entered into by a natural person, is, by law, required to be in writing may be entered into on behalf of the society in writing by a person acting under the society's express or implied authority:
          1. an obligation that, if entered into by a natural person, is not, by law, required to be in writing may be entered into on behalf of the society in writing or orally by a person acting under the society's express or implied authority.

            1. A society may, in addition to complying with subsection (1), affix its common seal, if it has one, to the contract or document containing the enforceable obligation.

            2. Subsection (1) applies to a contract or other obligation—

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

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