Where a statutory body enters into a contract for the supply of goods or services that requires the exercise of a statutory discretion (such as issuing licences), the body's implied contractual obligation to do all things necessary to enable the other party to have the benefit of the agreement includes an obligation to have any necessary statutory preconditions (such as an environmental impact statement) satisfied when it purports to exercise the discretion. However, the body is not obliged to exercise the discretion unless the other party takes the steps required by the statutory regime (such as applying for a licence). The distinction between breach by issuing an invalid licence and breach by failing to obtain the preconditions for a valid licence has significant consequences for the measure of damages recoverable.
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