Student Number 2
Problem-based question 1
The facts are that; TAC is an association recognized by law and its members
compete and participate in the South Victorian Athletics Club Competition.
TAC entered into a contract with the Stratham Council in Victoria to use the
council run Lingham Sports Center, which uses for athletics practice for the sum of $
3000 for three years to use one of the ovals.
Sally Innes signed the contract on behalf of TAC as the ‘nominating trustee’
although Sally has never been nominated as a trustee via any formal Cub process.
AAC approached Stratham Council to use the same oval facilities as used by TAC
for the sum of $ 5000 per year at any day and time, and Stratham wants to cancel the
TAC contract as they are short on cash.
The matter in this is whether the contract entered between TAC and Stratham is
valid and legally binding; and whether discussing a new and improved contract with
AAC for the ground (at any time) would be violating the legal agreement with TAC. TAC
in this context is considered an Unicorporated Association (UA) which is not for profit ;
as such, it cannot purport to have entered into a contract unless all its members
entered individually into a contract with the Council. The advice in this case would
borrow from the ruling of
Carlton Cricket and Football Social Club v Joseph [1970] VR
487 in which a stay of execution was held that the social club cannot enter into a
contract, and neither can anyone enter into a legally binding contract to represent it 1
(see image). As such, the advice to give the Stratham Council in lieu of interest from
AAC to use the oval used by TAC is to proceed and have an agreement .
1 Nexus Notes, "Unicorporated Non Profit Associations", Nexusnotes-Media.S3-Ap-Southeast-2.Amazonaws.Com,
accessed 2 April 2020, https://nexusnotes-media.s3-ap-southeast-2.amazonaws.com/wp-content/uploads/edd/
2015/05/LPAB-Law-of-Associations-exams-notes-17515-copye.pdf.

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