The Act – Overview

3.Execution in counterpart is the process whereby each of the parties to a document signs (“executes”) a separate physical copy of it and all then exchange the resultant copies so that each ends up with a set of each of the copies signed by the other parties. The aim is to create a legally enforceable document rather than having to arrange for all parties to meet together for each to sign the same document. The Act provides a clear framework by which a document executed in counterpart will be effective under Scots law. The Act also creates a mechanism to enable documents created on paper (referred to in the Act as “traditional documents”) to be regarded as delivered by electronic means for legal purposes such as concluding a contract. The Act implements the legislative recommendations in the Scottish Law Commission (SLC) report Review of Contract Law – Report on Formation of Contract: Execution in Counterpart(1), which was published in April 2013 (“the SLC Report”).

4.The Act has 7 sections with the following key provisions: