Contract (Third Party Rights) (Scotland) Act 2017 (Version in vigour from 2018-02-26 to )
| Currency | No known outstanding effects |
| Coming into Force | 26 February 2018 |
the contract contains an undertaking that one or more of the contracting parties will do, or not do, something for the person's benefit, andat the relevant time it was the intention of the contracting parties that the person should be legally entitled to enforce or otherwise invoke the undertaking.(2) The third-party right is the right to enforce or otherwise invoke the undertaking.(3) The person who is to acquire a third-party right under a contract must be identifiable from the contract by being either named or described in it.was not in existence, ordid not fall within the description of persons (if any) whom the contracting parties intended should benefit from, and be legally entitled to enforce or otherwise invoke, the undertaking.the time when the contract was constituted, orif the undertaking was added to the contract by a modification of its terms, the time when the modification was made.(1) This section makes provision elaborating on section 1.(2) The undertaking referred to in section 1(1) (a) may be one which depends on something happening or not happening (whether or not it is certain that that thing will or will not happen) .(3) The intention of the contracting parties referred to in section 1(1) (b) may be express or implied.the undertaking may be cancelled or modified,there has been no delivery, intimation or communication of the undertaking to the person.(5) The reference in section 1(1) (a) to an undertaking to do something includes an undertaking to indemnify a person.not to hold a person liable in a matter,not to enforce, or not to enforce in full, a person's liability in a matter.(7) This Act is without prejudice to any other enactment, or rule of law, that imposes requirements which must be fulfilled if an enforceable obligation is to be created.(1) An undertaking contained in a contract which has given rise to a third-party right may be cancelled or modified by the contracting parties.(2) Nothing in this Act precludes a contract from providing that an undertaking, which is contained in the contract and in relation to which a third-party right has arisen, will not be cancelled or modified by the contracting parties.(3) Subsection (1) is subject to sections 4 to 6.by virtue of a person's third-party right to do so, andin consequence of something happening or not happening prior to the undertaking being cancelled or (as the case may be) the modification being made.(2) Subsection (1) does not apply in relation to a cancellation or modification if the contract provided that it may be made with retroactive effect.a person who has a third-party right arising from an undertaking contained in a contract is given notice of the undertaking by a contracting party, andthe undertaking is subsequently cancelled or modified.(2) No account is to be taken of the cancellation or (as the case may be) modification of the undertaking when it is being enforced or otherwise invoked by virtue of the third-party right.the undertaking is one which depends on something happening or not happening, andit remained uncertain whether that thing would happen or not at the time when the notice mentioned in subsection (1) (a) was given.at the time when the notice mentioned in subsection (1) (a) was given, the person given the notice was told by the contracting party that the undertaking may be cancelled or (as the case may be) that the modification may be made, orthe person who has the third-party right has given assent to the cancellation or (as the case may be) modification of the undertaking.a person has a third-party right to enforce or otherwise invoke an undertaking contained in a contract,the person has done something, or refrained from doing something, in reliance on the undertaking,doing or (as the case may be) refraining from doing the thing has affected the person's position to a material extent,the contracting parties acquiesced in the person doing or (as the case may be) refraining from doing the thing, orthe person's doing or (as the case may be) refraining from doing the thing in reliance on the undertaking could reasonably have been foreseen by the contracting parties, andsubsequent to the person doing or (as the case may be) refraining from doing the thing mentioned in paragraph (b) , the undertaking has been cancelled or modified.(2) Where the person is enforcing or otherwise invoking the undertaking by virtue of having the third-party right, no account is to be taken of the cancellation or modification of the undertaking if the person's position would be adversely affected to a material extent were the undertaking treated as having been cancelled or (as the case may be) modified.that the contracting parties are entitled to cancel or (as the case may be) modify the undertaking, andthat their entitlement to do so will not be affected by the person doing, or refraining from doing, something in reliance on the undertaking, andthe person knew or ought to have known about that provision of the contract before the person did, or refrained from doing, the thing mentioned in subsection (1) (b) .(4) Subsection (2) does not apply in relation to the cancellation or modification of the undertaking if the person has given assent to it.is personally barred from cancelling or modifying the undertaking, orhas waived any right to cancel or modify the undertaking.
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