New Zealand Acts

COMMERCE ACT 1986 - SECT 59

59 Contracts or covenants subject to authorisation not prohibited under certain conditions

1 Despite anything in this Act, but subject to section 59B ,—

a) a contract to which section 27or 30(1)(a) applies may be entered into if the requirements of subsection (2) are complied with:

aa) a contract the entry into which is, or the giving effect to a provision of which would be, conduct to which section 36 or 36A applies may be entered into if the requirements of subsection (2) are complied with:

b) a covenant to which section 28or 30(1)(ab) applies may be required to be given, or may be given, if the requirements of subsection (2) are complied with:

c) a covenant the requiring of the giving of which, or the giving of which, is conduct to which section 36 or 36A applies may be required to be given, or may be given, if the requirements of subsection (2) are complied with.

2 For the purposes of subsection (1), the requirements that must be met are,—

a) in the case of a contract described in subsection (1)(a), that the contract is subject to a condition that the provision does not come into force unless and until authorisation is granted to give effect to it and that an application must be made for that authorisation within 15 working days after the contract is entered into:

aa) in the case of a contract described in subsection (1)(aa), that the contract is subject to a condition that the contract does not come into force unless and until authorisation is granted to engage in the conduct to which section 36 or 36A applies and that an application must be made for that authorisation within 15 working days after the contract is entered into:

b) in the case of a covenant described in subsection (1)(b) or (c), that the covenant is subject to the condition that it does not have effect unless and until authorisation is granted to give effect to it, or to engage in the conduct to which section 36 or 36A applies, as the case may be, and that application must be made for that authorisation within 15 working days after the covenant is made.

3 The condition referred to in subsection (2)(a), (aa), or (b) may provide for the provision or the contract to come into force, or the covenant to have effect, as the case may be, on the basis of an interim authorisation being granted under section 65AAA , but only if the condition also provides for the provision, contract, or covenant to cease to have effect immediately if—

a) the interim authorisation ceases to be in force; and

b) the authorisation under section 58 has not been granted.

History: Section 59: substituted, on 26 May 2001, by section 13 of the Commerce Amendment Act 2001 (2001 No 32).   Section 59(1)(a): amended, on 5 April 2023, by section 27(1) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(1)(a): amended, on 15 August 2017, by section 32(2)(a) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).     Section 59(1)(aa): inserted, on 5 April 2023, by section 27(2) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(1)(b): amended, on 5 April 2023, by section 27(3) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(1)(c): inserted, on 5 April 2023, by section 27(4) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(2)(a): replaced, on 15 August 2017, by section 32(2)(a) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).     Section 59(2)(a): amended, on 5 April 2023, by section 27(5) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(2)(aa): inserted, on 5 April 2023, by section 27(6) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(2)(b): amended, on 5 April 2023, by section 27(7)(a) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(2)(b): amended, on 5 April 2023, by section 27(7)(b) of the Commerce Amendment Act 2022 (2022 No 11).     Section 59(3): replaced, on 5 April 2023, by section 27(9) of the Commerce Amendment Act 2022 (2022 No 11).