The A.L.C. is a body established by the Financial Agreement, which, as the decision of this Court in Sankey v. Whitlam [1] demonstrated, is not a law of the Commonwealth. The contracting parties were the Commonwealth and the States. Although the Agreement was approved by the Financial Agreement Act 1928 Cth, as amended, the operative provisions of that Act make no reference to the A.L.C. and do not touch its constitution or membership. The Agreement was expressed to be subject to the approval of the Parliaments of the Commonwealth and the States (cl. 1). The approval and validation of the Agreement was examined in detail in Sankey v. Whitlam [2] . The reasoning in the judgments in that case is inconsistent with the notion that the various statutes which approved or validated the Agreement established the A.L.C. Indeed, the definition of "The Loan Council" in cl. 2 of the Agreement states that it means "the Australian Loan Council created in pursuance of this Agreement". The Agreement contains detailed provisions respecting the constitution, membership, functions and procedures to be followed by the A.L.C. Section 105A of the Constitution provides for the making of such an Agreement and confers legislative power for the validation of, and for the carrying out of, such an Agreement. And s. 105A(5) protects the Agreement and any variation of it from the impact from the Constitutions of the Commonwealth and the States and from the laws of the Commonwealth and the States. The agreement remains as a contract, yet it is a contract entrenched by the Constitution, subject only to its being varied or rescinded by the parties (see s. 105A(4)).