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SLC considers third party rights contract rights 28/03/2014 The Scottish Law Commission is seeking comments on a number of proposals to update and reform third party contractual rights in Scotland.

SLC considers third party rights contract rights

The Scottish Law Commission is seeking comments on a number of proposals to update and reform third party contractual rights in Scotland.

While, like most other European jurisdictions, Scots law has, for centuries, recognised third party rights in certain situations, it needs modernisation: much of the case law is very old, and it is neither clear nor comprehensive. What may once have been satisfactory for resolving disputes is no longer suitable for today’s citizens and business people, who rightly demand that contract law should be certain, robust and clear, yet also flexible.

With some common law jurisdictions, such as England and Wales and New Zealand, recently introducing statutory third party rights for the first time, the SLC warns that Scots law is at risk of becoming unattractive by comparison with some of its closest neighbours.

It has therefore reviewed the issues and has published a Discussion Paper, asking whether a short legislative statement is required, setting out how third parties can have rights and remedies conferred upon them under a contract between other parties.

Interested parties should comment on the proposals by 20th June. Further details are available here.

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