Faculty hails third party rights proposals

In comments to the Scottish Law Commission on a draft Contract (Third Party Rights) (Scotland) Bill, the Faculty stated: “In broad terms, the Faculty supports the proposals contained in the Commission’s Discussion Paper on Third Party Rights in Contract.

“The Faculty considers that codifying and clarifying the common law of ius quaesitum tertio in modern language will be an important improvement for Scots contract law.”

Some suggestions were made, however, regarding the bill.

“We observe that the core concept of the Bill is that of the ‘undertaking’: s 1(1)(a) and (b). It is not otherwise defined. We do not see that lack of a definition as, per se, problematic but we do observe that it gives rise to a number of uncertainties…There may be something to be said for the use of the word ‘stipulation’ instead of ‘undertaking’,” the Faculty said.

It also raised points in relation to sections dealing with cancellation or modification, remedies, defences, arbitration, renunciation and prescription.