Scottish Parliament Passes Reforms Of Third Party Rights Under Scots Contract Law

The Scottish Parliament has passed the Contract (Rights of Third Parties) (Scotland) Bill.

As has been noted in previous blogs, reform of third party rights under Scottish contract law is long overdue. The Bill addresses a lack of clarity about the scope of third party rights in relation to contracts.

These rights were unclear and inflexible and meant that Scots law wasn't seen as a particularly friendly law under which to enter into contracts and other commercial arrangements. In contrast, English law was reformed in 1999 and has provided a much clearer framework. As a consequence, a number of Scottish organisations opt to contract under English law rather than Scots law.

The reforms will be welcomed by businesses and lawyers alike and it is hoped that it will enhance the commercial attractiveness of Scots contract law for...