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General

The Contract (Third Party Rights) (Scotland) Bill 15/05/2017 Holyrood’s Delegated Powers and Law Reform Committee has recommended that the general principles of the Contract (Third Party Rights) (Scotland) Bill be approved.

The Contract (Third Party Rights) (Scotland) Bill

Holyrood’s Delegated Powers and Law Reform Committee has recommended that the general principles of the Contract (Third Party Rights) (Scotland) Bill be approved.

Provision for third party rights is currently recognised in Scots Law under the common law doctrine jus quaesitum tertio or JQT. This allows parties to a contract to create an enforceable right in favour of a third party. The general aim of the Bill is to provide a new statutory framework with clearer, more usable rules on third-party rights. The Bill seeks to put the common law position on a statutory footing.

The Committee’s report on the general principles of the Bill notes widespread consensus in support of the legislation. The report, however, notes a number of suggestions from stakeholders as to how the law could be made clearer.

“This Bill should deliver the flexibility and certainty that has been sought in this area of law. It is clear there is consensus and universal support for the aims of the Bill amongst the stakeholders that the Committee heard from,” said John Scott MSP, Convener of the Scottish Parliament’s Delegated Powers and Law Reform Committee. “There is potential for this Bill to be a useful tool for legal practitioners and their clients. There are a number of points however, where stakeholders have suggested the clarity of the Bill could be improved and the Committee would welcome the Scottish Government’s reflections on these.”

The report can be found here.

 

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