Third Party Rights Bill passed by Holyrood
Reforms to the law on third party rights in contract have been passed by the Scottish Parliament.
Following yesterday's stage 3 debate, MSPs unanimously approved the Contract (Third Party Rights) (Scotland) Bill, which replaces the common law rules with a modern statement of the law.
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.
Implementing recommendations in the Scottish Law Commission's Report on Third Party Rights, part of the Commission's review of contract law, it has been welcomed by the legal profession.
Minister for Legal Affairs Annabelle Ewing commented: “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 contracts.
“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.”
During the debate, advocate Gordon Lindhurst MSP asked, in the light of statements during the passage of the bill, "whether, notwithstanding section 12, the bill that we pass into law today merely modifies the jus quaesitum tertio rule, completely abolishes the rule, or codifies the rule to make it purely statutory in the Act-to-be... If there is no clear answer to that question, it could be goodbye, hello to jus quaesitum tertio".
Minister for Community Safety and Legal Affairs Annabelle Ewing replied: "What can I say? On the Government side of the chamber, we verge to the view that it will be goodbye jus quaesitum tertio, but I will be happy to write in detail" on the point raised.