ASSOCIATIONS INCORPORATION ACT 1985 - SECT 27
ASSOCIATIONS INCORPORATION ACT 1985 - SECT 27
27—Limitation of doctrine of " "ultra vires
(1) A contract made
with an incorporated association is not invalid by reason of any deficiency in
the capacity of the association to enter into, or carry out, the contract
unless the person contracting with the association has actual notice of the
deficiency.
(2) An
incorporated association that enters into a contract that would, but for the
provisions of subsection (1), be invalid is empowered to carry out the
contract.
(3) This section does
not prejudice an action by a member of an incorporated association to restrain
the association from entering into or carrying out a transaction that lies
beyond the powers conferred on the association by this Act or its rules.