43Contracts before registration

43 Contracts before registration (1) This Division applies if a person enters into, or purports to enter into, a contract (a ***pre‑registration contract***) on behalf of, or for the benefit of, an association before it is registered under this Act as an incorporated association. (2) The association becomes bound by the contract and entitled to its benefits if the association, or an association that is reasonably identifiable with it, is registered and ratifies the contract— (a) within the period agreed to by the parties to the contract; or (b) if there is no agreed period—within a reasonable period after the contract is entered into. (3) The person is liable to pay damages to each other party to the pre-registration contract if the association is not registered, or the association is registered but does not ratify the contract or enter into a substitute for it— (a) within the period agreed to by the parties to the contract; or (b) if there is no agreed period—within a reasonable period after the contract is entered into. (4) The maximum amount of damages the person is liable to pay to a party is the amount the association would be liable to pay to the party if the association 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 (4) because the association is registered but does not ratify the pre-registration contract or enter into a substitute for it, the court may do anything it considers appropriate in the circumstances, including ordering the association to do one or more of the following— (a) pay all or part of the damages that the person is liable to pay; (b) transfer property that the association received because of the contract to a party to the contract; (c) pay an amount to a party to the contract. (6) If the association 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 association is ordered to pay.