Views sought on the Contract (Third Party Rights) (Scotland) Bill

24.02.2017

A call for evidence from all interested individuals and organisations has been issued on the Contract (Third Party Rights) (Scotland) Bill.

Provision for third party rights is currently made in common law. Scots law currently allows parties to a contract to create an enforceable right in favour of a third party, known as a jus quaesitum tertio or JQT.

The Bill seeks to put the common law position on a statutory footing and give third parties to a contract, the statutory right to create an enforceable right.

John Scott MSP, Convener of the Scottish Parliament’s Delegated Powers and Law Reform Committee said:

“This Bill seeks to provide a more modern approach to third party rights, and to bring Scotland into line with other jurisdictions.

“As part of our evidence gathering to help us reach a view on the general principles of the Bill, we want to hear from all individuals and organisations that might have an interest in, or be affected by this potential change in the law.

“As well as seeking views from law firms, businesses and university law schools we also want to hear from citizens’ rights organisation and anyone else with experience of this aspect of law.”   

Respondents are asked, if possible, to address the following questions:

1. What are the benefits of moving from a common law approach to a statutory footing?
2. What impact will this Bill have on third party rights?
3. Do you think the Bill will increase the use of Scots Law?
4. Do you have any concerns about the approach taken in the Bill?
5. What are the financial implications of the Bill?

The closing date for written views is: 24 March 2017

Background information

A copy of the Bill, and its accompanying documents, are available on the Scottish Parliament’s website at: http://www.scottish.parliament.uk/parliamentarybusiness/Bills/103313.aspx

The Bill was introduced into the Scottish Parliament, by the Scottish Government on Tuesday 31 January 2017.

This is a Scottish Law Commission Bill.

The Bill implements the legislative recommendations contained in the Scottish Law Commission’s Review of Contract: Report on Third Party Rights (SLC No 245; July 2016). The Report was published as part of the SLC‘s wider review of contract law.

 

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