Law Society of Scotland
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Obligations

SLC Consultation Paper on the Consolidation of Bankruptcy Legislation in Scotland

The consultation invites views on a number of proposed changes to the The Bankruptcy (Scotland) Act 1985.  The changes relate to matters of technical detail and are intended to remove anomalies, treat like cases in the same way or to omit provisions that no longer serve any purpose.  The aim is to pave the way for a new and more accessible legislative framework governing bankruptcy in Scotland.  It also invites suggestions for other amendments which would seek to tidy up (as opposed to reform) the 1985 Act.


SLC Discussion Paper on Moveable Transactions

The Obligations committee, along with the intellectual property and banking commitees responded to this discussion paper which looks at at three connected areas of law, all important to the smooth running of the Scottish economy. In all three areas Scots law appears to be out of date, and insufficiently business-friendly. From an international perspective current Scots law would appear to be in need of radical reform.

  1. The transfer of financial rights (ie a creditor transferring the right to payment, so that the debtor will have a new creditor).
  2. Security over corporeal moveable property. ("Security" means security for a debt.) Although Scots law, like other systems, allows security by delivery to the lender (eg handing over a gold watch to a pawnbroker), there are legal hurdles in the way of non-possessory security.
  3. Security over incorporeal moveable property. Here too the current law would seem to be capable of considerable improvement.
The Discussion Paper discusses the current law, identifies its shortcomings, and suggests possible ways forward.

Proposed EU Regulation creating a European Account Preservation Order to facilitate cross-border recovery in civil and commercial matters

The European Commission published a proposed Regulation creating a European Account Preservation Order (EAPO) to facilitate cross-border debt recovery in civil and commercial matters. This consultation, published by the Ministry of Justice (MOJ), seeks views on whether it is in the UK's national interests to be a party to this Regulation, i.e. whether the UK should opt in to the proposal or not and/or be party to the forthcoming negotiations.

European Contract Law Feasibility Study

This review follows on from the EU Green Paper on Contract Law which the Society's Obligations committee submitted a response to at the beginning of the year.

An expert group established by the European Commission compiled this study which covers the most relevant practical issues in a contractual relationship, such as legal rights for faulty goods and rules on which contract terms may be unfair.

Review of Contract Law - Discussion Paper on Interpretation of Contract

This Scottish Law Commission (SLC) Discussion Paper is the first publication in a new project reviewing contract law. The project began early in 2010.

The SLC propose to review the law of contract in the light of the publication in 2009 of the Draft Common Frame of Reference: Principles, Definitions and Model Rules of European Private Law (the DCFR). The DCFR provides a contemporary statement of contract law, based on comparative research from across the European Union and written in accessible and non-archaic English.

EU Commission Green Paper: towards a European Contract Law for consumers and businesses

The purpose of this Green Paper is to set out the options for developing EU contract law to strengthen the internal market by making cross-border transactions more straightforward.