The general principles of a Bill that aims to provide a new statutory framework for third-party contractual rights, with clearer, more usable rules, has been approved by the Scottish Parliament’s Delegated Powers and Law Reform Committee.

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 Contract (Third Party Rights) (Scotland) Bill seeks to put this common law position on a statutory footing. The Bill implements the legislative recommendations contained in a Scottish Law Commission report on third party rights that was published as part of the Commission’s wider review of contract law.

The Committee’s report on the general principles of the Bill notes widespread consensus in support of the legislation, however it also 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,” explained John Scott MSP, Convener of the Scottish Parliament’s Delegated Powers and Law Reform Committee. “It is clear there is consensus and universal support for the aims of the Bill amongst the stakeholders that the Committee heard from.”

“There is potential for this Bill to be a useful tool for legal practitioners and their clients,” he added. “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.”

Contains information licenced under the Scottish Parliament Copyright Licence.

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