By Richard Morrison
The scope of the doctrine of executive necessity, the public
interest-based concept that contracts and agreements are
unenforceable if they fetter statutory executive discretions and
powers, has been examined by a recent Supreme Court of NSW
decision.
In NSW Rifle Association Inc v Commonwealth of
Australia, the court examined the limits of the doctrine of
executive necessity and found the Commonwealth had an implied
contractual duty to act reasonably and in good faith.
Importantly, the case provides useful guidance on a number of
issues the Commonwealth needs to consider when managing the
termination of contracts.
Background to the case
The New South Wales Rifle Association (NSWRA) occupies the ANZAC
Rifle Range at Malabar, where the local member has long campaigned
for the land to be transferred to the State of NSW for use as a
national park.
