The Bill will give third parties more rights and protection in a contract. Common law is law which comes from judges' decisions in courts and similar tribunals.
This is a Government bill
The Bill became an Act on 30 October 2017
This Bill was passed and is now an Act of the Scottish Parliament.
The Bill will give third parties more rights and protection in a contract. Common law is law which comes from judges' decisions in courts and similar tribunals.
This Bill uses recommendations from The Scottish Law Commission's Review of Contact Law: Third Party Rights.
Someone who is affected by the original contract would be a third party. For example, a person whose friend booked their holiday and the operator went bust would have third party rights.
Or if a small trades person was contracted onto a large job by another trades company and the customer did not pay, the small trades person would have third party rights.
The right in favour of a third party who is in a contract is currently a common law.
The aim of the Bill is to let parties in a contract create legal rights in favour of a third party.
The Bill will give a clearer and legally binding version of the common law rule.
Contract (Third Party Rights) (Scotland) Bill as Introduced (292KB, pdf) posted 31 January 2017
Explanatory Notes (193KB, pdf) posted 31 January 2017
Policy Memorandum (273KB, pdf) posted 31 January 2017
Financial Memorandum (106KB, pdf) posted 31 January 2017
Delegated Powers Memorandum (164KB, pdf) posted 31 January 2017
Statements on legislative competence (66KB, pdf) posted 31 January 2017
All Bills introduced in the Parliament must be accompanied by specific documents. For most Bills, this includes:
Explanatory Notes: this document provides an overview of what the Bill does, plus a more detailed explanation of individual provisions.
Policy Memorandum: this sets out the objectives of the Bill. It also lists any alternatives considered, details of consultations, and an assessment of the effects of the Bill on a range of areas.
Financial Memorandum: this sets out estimates of costs, savings, and any changes to revenues expected to result from the Bill.
Delegated Powers Memorandum: this is needed if a Bill gives powers to make subordinate legislation or allows Scottish Ministers to issue directions, guidance or codes of practice.
Statements on legislative competence: two short statements, one by the Presiding Officer and one by the Member introducing the Bill. “Legislative competence” means the powers the Parliament has to make law.
The Presiding Officer has decided under Rule 9.12 of Standing Orders that a financial resolution is not required for this Bill.
For each Bill, the Presiding Officer must decide if a 'Financial Resolution' is required. The main reasons a Bill would need a Financial Resolution are that:
If a Bill requires a Financial Resolution:
The Bill was introduced on 31 January 2017
At Stage 1, the Bill is given to a lead committee. This is usually the committee whose remit most closely relates to the subject of the Bill. The lead committee will consider and report on the Bill. Other committees may also examine the Bill and report to the lead committee. Finally, there is a debate and vote by all MSPs on the general principles of the Bill. If the general principles are not agreed to, then the Bill ‘falls’ and can’t become law.
The lead committee for this Bill is the Delegated Powers and Law Reform Committee. The lead committee considers and reports on the Bill.
The lead committee will usually examine the Bill through evidence sessions. This will involve contributions from individuals and organisations, known as 'witnesses', with knowledge of the subject matter. The committee might also discuss the Bill in private sessions.
The deadline for sharing your views on this Bill has passed.
A Stage 1 debate took place on 25 May 2017 to consider and decide on the general principles of the Bill.
See further details of the motion
The Bill ended Stage 1 on 25 May 2017
At Stage 2, MSPs can propose changes to a Bill. These are called 'amendments'. Any MSP can suggest amendments but only members of the Stage 2 committee can decide on them.
Documents with the amendments considered at this meeting held on 27 June 2017 :
First Marshalled List of Amendments for Stage 2 (126KB, pdf) posted 25 June 2017
First Groupings of Amendments for Stage 2 (139KB, pdf) posted 25 June 2017
A Stage 2 'Marshalled List' is a list of all the amendments that have been lodged at Stage 2 (or, if the Stage is mid-way through, all those still to be dealt with). They are listed in the order in which they will be called by the convener and then decided on.
A 'Groupings' list shows how the amendments that are listed in the Marshalled List have been grouped together for debate. Each group contains amendments that are related to each other, even if they are at different places in the Marshalled List.
Revised Explanatory Notes (250KB, pdf) posted 29 June 2017
Sometimes an amendment at Stage 2 makes substantial changes to a bill. If this happens, the Accompanying Documents need to be updated to explain what these changes are.
The Bill ended Stage 2 on 27 June 2017
At Stage 3, MSPs can propose further amendments (changes) to the Bill. These are debated and decided on in the Debating Chamber. At this stage, all MSPs can vote on them. There is then a debate on whether to pass the Bill. If the Bill is not passed, it ‘falls’ and can't become law.
Once MSPs have decided on the amendments, they debate whether to pass the Bill.
Result 109 for, 0 against, 0 abstained, 20 did not vote Vote Passed
See further details of the motion
The Bill ended Stage 3 on 21 September 2017
If the Bill is passed, it is normally sent for Royal Assent after about 4 weeks. Royal Assent is when the Bill gets formal agreement by the King and becomes an Act of the Scottish Parliament. Some Acts come into force straight after Royal Assent. Some only come into force on a later date. Sometimes different bits of the same Act come into force on different dates.