A local council's general power to contract does not permit it to charge fees for services outside the mechanisms established by Chapter 15 Part 10 of the Local Government Act 1993 (NSW), even where fees are negotiated as part of a commercial agreement. However, a claim for restitution of fees paid under mistake will fail where the payer received good consideration — the benefit of the services for which it bargained — and this defence may be raised on appeal by notice of contention even if not pleaded at trial, provided no factual questions are raised. The question whether non-compliance with the fee-setting provisions renders the fees void or merely voidable under a Project Blue Sky analysis was left open.
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