New legislation makes third party contract law rights clearer
Reforms to contract law on third party rights have been passed by the Scottish Parliament.
The Contract (Third Party Rights) (Scotland) Bill will establish a statutory basis for third-party rights and ensure Scots law is flexible and fit for modern-day purposes.
While it remains open to the contracting parties to define exactly what they intend to happen, the Bill provides an effective legal framework for third party rights which does not cut across party autonomy.
Minister for Legal Affairs Annabelle Ewing said: “Contracts form part of everyday modern life and this Bill provides vital clarification on the rights of third parties. Not only does it provide important benefits and protections, it updates the current inflexible approach taken under common law.
“A clear, positive and readily accessible law will improve the standing and value of Scots law domestically and internationally, given the cross-border nature of many modern contacts.
“These are the first significant developments to the law in this area in nearly 100 years. We all deserve a legal framework which is fit for purpose and this legislation will deliver that.”
The Bill will implement recommendations contained in the Scottish Law Commission Report Review of Contract Law, Report on Third Party Rights and has been welcomed by the legal profession.