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Oil & Gas

On 30 November 2016, the Scottish Law Commission (‘SLC’) published a discussion paper on penalty clauses as part of its current review of contract law in Scotland (‘2016 Discussion Paper’). It has been a long standing principle of Scots law (and the law of England and Wales) that penalty clauses are unenforceable. Identifying a need for review of this area of the law, SLC previously published a discussion paper (1997) and report (1999) on the issue which set out proposals for reform. However, following a consultation on a draft Penalty Clauses (Scotland) Bill (which took forward the recommendations made by the SLC) the Scottish Government determined that further work was required in relation to this area of the law.

Chambers UK 2018

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28 Albyn Place, Aberdeen AB10 1YL
Tel: +44 1224 845845


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Business Park, Inverness IV2 6AA
Tel: + 44 1463 713225

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