Northern Territory Consolidated Acts Northern Territory Consolidated Acts56. Contracts before registration
(1) If a person enters into, or purports to
enter into, a contract on behalf of, or for the benefit of, a proposed
co-operative, the co-operative becomes bound by the contract and entitled to
its benefit if the
co-operative, or a co-operative that is reasonably
identifiable with it, is registered and ratifies the contract:
(a) within a reasonable period after the contract is entered into; or
(b) within any period agreed to by the parties to the contract.
(2) The person is released from any liability under the pre-Registration contract if the co-operative enters into another contract in substitution for it:
(a) within a reasonable period after the pre-Registration contract is entered into; or
(b) within any
period agreed to by the parties to the
pre-Registration contract.
(3) The
person is liable to pay damages to each other party to the
pre-Registration
contract if a co-operative is not registered, or a
co-operative is registered
but does not ratify the contract or enter into a substitute for it:
(a) within a reasonable period after the contract is entered into; or
(b) within the period agreed to by the parties to the contract.
(4) The maximum amount of damages the person is liable to pay to a party is the amount the co-operative would be liable to pay to the party if the co-operative had been registered and had ratified the contract and then completely failed to perform it.
(5) If proceedings are brought to recover damages under subsection (3) because the co-operative is registered but does not ratify the pre-Registration contract or enter into a substitute for it, the court may do anything that it thinks just in the circumstances, including ordering the co-operative:
(a) to pay all or part of the damages that the person is liable to pay;
(b) to transfer property that the co-operative received because of the contract to a party to the contract; and
(c) to pay an amount to a party to the contract.
(6) If the co-operative ratifies the pre-Registration contract but fails to perform all or part of it, the court may order the person to pay all or part of the damages that the co-operative is ordered to pay.