Unit Titles Regulations 2011

Method of contracting

17 Method of contracting

(1)

Subject to subclause (2), a body corporate may not enter into an obligation without the body corporate’s approval by ordinary resolution.

(2)

Subclause (1) does not apply if the body corporate is required to enter into an obligation urgently for the purpose of avoiding serious damage to property or preventing injury.

(3)

Subclause (4) applies to the following obligations:

(a)

an obligation that, if entered into by an individual, is required to be by deed; and

(b)

an obligation that, if entered into by an individual, is required to be in writing.

(4)

An obligation to which this subclause applies may be entered into on behalf of the body corporate in writing by the chairperson, or by the committee chairperson if this power has been delegated to a body corporate committee, and must be witnessed by—

(a)

1 member of the body corporate committee; or

(b)

if no body corporate committee has been elected, 1 member of the body corporate; or

(c)

if there is only 1 member of the body corporate, a person who is not a member of the body corporate and who is not a party to, or otherwise interested in, the obligation.

(5)

An obligation that, if entered into by an individual, is not required to be in writing may be entered into on behalf of the body corporate in writing or orally by the chairperson, or by the committee chairperson if this power has been delegated to a body corporate committee.

(6)

In this regulation, obligation means a contract or other enforceable obligation.