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New Bill Proposes Changes to Scots Contract Law

A new Bill to simplify contract law in Scotland has been introduced to the Scottish Parliament.

The Legal Writings (Counterparts and Delivery) (Scotland) Bill is based on recommendations contained in a Scottish Law Commission report, and will make two major innovations to Scots law and practice.

The Bill will clarify that a document which is to be signed by two or more parties can be “executed in counterpart”, i.e. that each party can sign its own copy of the document, which will then be delivered to the other party or parties (or their nominee where there are several of them).

In addition, the Bill will permit delivery of paper legal documents by electronic means, meaning that the document will take legal effect upon such delivery. This will resolve the current doubt as to whether faxing or emailing a copy of a signed paper document can make it legally effective.

“This Bill will remove a practical barrier to the use of Scots law in transactions and keep Scots law fit for purpose,” commented Minister for Energy, Enterprise and Tourism Fergus Ewing. “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,” he added. “In this way, the law of Scotland will be brought up to date, and in so doing, will promote business and economic growth.”

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