(1) A contract made
with an incorporated association is not invalid by reason of any deficiency in
the legal capacity of the association to enter into, or carry out, the
contract unless the person contracting with the association has actual notice
of the deficiency.
(2) An incorporated
association that enters into a contract that would, but for the provisions of
subsection (1), be invalid is empowered to carry out the contract.
(3) This section does
not prejudice an action by a member of an incorporated association to restrain
the association from entering into a transaction that is beyond the powers of
the association.