SLC seeks views on draft third party rights bill

SLC seeks views on draft third party rights bill

Scots law currently allows parties to a contract to create an enforceable right in favour of a third party, known as a jus quaesitum tertio or JQT.

There are, however, certain drawbacks; for example, the law is inflexible, as it is thought to require the right to be irrevocable before it can come into existence.

This can prevent it from being used in situations in which a third party right would be useful and desirable.

Parties may resort to using other legal systems where the law is clearer and more suited to modern life. The draft Contract (Third Party Rights) (Scotland) Bill seeks to reform the current common law and to replace it with a statutory version.

The Scottish Law Commission welcomes views on the bill, preferably by 22 January 2016. For more information please contact charles.garland@scotlawcom.gsi.gov.uk.

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