Simplifying Scots Contract Law

15 May 2014 04:23 PM

First Bill for consideration under Scottish Law Commission Reports.

Speeding up the process of “getting the deal in writing” will bring benefits to businesses in Scotland said the Minister for Energy, Enterprise and Tourism Fergus Ewing today as he welcomes the introduction to the Scottish Parliament of the Legal Writings (Counterparts and Delivery) (Scotland) Bill.

It is the first Bill to be considered for a new Parliamentary process implementing Scottish Law Commission Reports.

Parties will now be able to get their documents legally signed and exchanged without meeting at the same place, as is often the case at present.

It will also enable documents created on paper to be delivered electronically to make them binding. The Bill implements recommendations contained in the Scottish Law Commission Report Review of Contract Law, Report on Formation of Contract: Execution in Counterpart.

Mr Ewing said:

“This Bill will remove a practical barrier to the use of Scots law in transactions and keep Scots law fit for purpose. I am sure that its provisions will help increase business use of Scots law.

“The provisions will bring benefits to all parties in any transaction where there are multiple participants. In this way, the law of Scotland will be brought up to date, and in so doing, will promote business and economic growth.”

The provisions will not only be helpful to Scottish lawyers advising on complex contracts but will also have a wider application to smooth any transaction involving a number of parties in different places or even different countries. At the moment, parties in such circumstances may choose to complete a contract under another legal regime, often in practice English law. The provisions of the Bill mean that many more legal documents may be signed subject to Scots law.

Notes To Editors

Execution in counterpart is the process by which each party to an agreement enters into it by signing a separate physical copy of the agreement and then delivers it to the other party (or all other parties).

The Bill can be viewed at http://www.scottish.parliament.uk/parliamentarybusiness/Bills/76414.aspx< /a>

The Scottish Law Commission provides further background on their website:http://www.scotlawcom.gov.uk/law-reform-projects/contract-law-in-light-of -the-draft-common-frame-of-reference-dcf/.

The Scottish Parliament decided in May 2013 to accept recommendations for changes to the Standing Orders to allow certain Scottish Law Commission Bills to be referred to the Subordinate Legislation Committee; and to re-name the Committee the Delegated Powers and Law Reform Committee. This move recognises the valuable role of the Scottish Law Commission in reforming the law of Scotland and is intended to go some way towards improving the implementation rate of the Commission’s reports.

In order to qualify for the new Parliamentary process, the Bill must meet a number of criteria determined by the Presiding Officer:http://www.scottish.parliament.uk/parliamentarybusiness/CurrentCommittees /64215.aspx. This Bill fulfils these criteria.