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- Review of Contract Law: Discussion Paper on Third Party Rights in Contract: Scottish Law Commission Discussion Paper 157
Review of Contract Law: Discussion Paper on Third Party Rights in Contract: Scottish Law Commission Discussion Paper 157
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Generally, when we contract with another party, the law provides rights and remedies for both parties, but not for anyone else. This is sometimes known as the principle of privity of contract. Although other people may be affected by the contract, they are not treated as being a party to it. But there is another principle, that of freedom of contract, which is also relevant: it would allow the contracting parties, if they so wish, to provide rights under the contract for third parties. The way in which these two principles interact is at the heart of this Discussion Paper. Although, like most other European jurisdictions, Scots law has, for centuries, recognized third party rights in certain situations, it needs modernization. Prompted by comments from solicitors and others that the Scots law is too inflexible and uncertain, the Scottish Law Commission has carried out a thorough review. This paper present their proposals for reform and invites discussion.
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