Entering into contracts

If your society is thinking about entering into a contract you should consider the following.

• Is the reason for the contract authorised under your society’s constitution and its purposes?
• If as part of the contract your society will be borrowing money, will that loan be used for one of your society’s purposes?
• Who is authorised to enter into the contract on behalf of your society?

What the legislation requires

The Incorporated Societies Act 2022 sets out specific requirements for societies entering into a contract.

Where an obligation is entered into by a person and is required to be by deed, it may be entered into on behalf of the society in writing signed under the name of the society by:

• 2 or more officers of the society or
• If required by the constitution, an officer or other person whose signature must be witnessed, or
• 1 or more attorneys appointed by the society.

Where an obligation is entered into by a person and is required to be in writing, it may be entered into on behalf of the society in writing by a person acting under the society’s express or implied authority.

Where an obligation is entered into by a person and is not required to be in writing, it 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.

If a society has a common seal, it may affix it to the contract or document containing the enforceable obligation.

Other guides in

Running your incorporated society

• Your responsibilities as an incorporated society
• Your society's constitution
• Restrictions on money-making activities
• Dispute resolution procedures are mandatory
• Committees and officers
• Being a member
• Holding meetings
• Records you should keep

Other help topics