Law reform committee backs statutory framework for third party rights

Holyrood’s law reform committee has recommended MSPs back a bill providing a new statutory framework for third party rights.

Provision for third party rights is 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 aims 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.

Committee convener John Scott MSP said: “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.

“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.”