Third party rights clarified as MSPs pass contract bill
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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.
While it remains open to the contracting parties to define exactly what they intend to happen, the bill provides a legal framework for third party rights which does not cut across party autonomy.
Legal affairs minister 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.”