125Members etc may be required to deal with co-operative

125 Members etc may be required to deal with co-operative

(1) The rules of a co-operative may contain provisions that require a member to have stated dealings with the co-operative for a fixed period and to enter into a contract for that purpose.

(2) A co-operative may, if authorised by its rules, make a contract with a member containing provisions that require the member to have stated dealings with the co-operative for a fixed period.

(3) In particular, the provisions of the rules of the co-operative or a contract may require a member:

(a) to sell products through or to the co-operative; or

(b) to obtain supplies or services through or from the co-operative; or

(c) to pay to the co-operative a stated amount as liquidated damages for any failure to comply with a requirement authorised by this section.

(4) Any amount required to be paid to the co-operative as liquidated damages is, for the purposes of section 127, a debt payable by the member to the co-operative and is accordingly subject to that section.

(5) A contract authorised by this section is binding on the co-operative and all other parties even though, apart from this Law, the contract would be invalid as being in restraint of trade.

(6) Rules authorised by this section are authorised even though, apart from this section, the rules might be invalid as being in restraint of trade.