New South Wales Consolidated Acts

ASSOCIATIONS INCORPORATION ACT 1984 - SECT 32

32 Ratification of pre-incorporation contracts

(1) Where:

(a) a non-existent incorporated association purports to enter into a contract, and

(b) the association is incorporated within a reasonable time after the contract is purported to be entered into,

the incorporated association may, within a reasonable time after it is incorporated, ratify the contract.

(2) Where an incorporated association ratifies a contract as provided by subsection (1), the association is bound by, and is entitled to the benefit of, that contract as if the association had been incorporated before the contract was entered into and had been party to the contract.

(3) Where:

(a) a person purports to enter into a contract as agent or trustee for a proposed incorporated association, and

(b) the association is incorporated within a reasonable time after the person purports to enter into the contract but does not ratify the contract within a reasonable time after the association is incorporated,

then, notwithstanding any rule of law or equity, the agent or trustee does not have any right of indemnity against the incorporated association in respect of the contract.