<akomaNtoso xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xsi:schemaLocation="http://docs.oasis-open.org/legaldocml/ns/akn/3.0 http://docs.oasis-open.org/legaldocml/akn-core/v1.0/cos01/part2-specs/schemas/akomantoso30.xsd"><act name="asp"><meta><identification source="#"><FRBRWork><FRBRthis value="http://www.legislation.gov.uk/id/asp/2026/10"/><FRBRuri value="http://www.legislation.gov.uk/id/asp/2026/10"/><FRBRdate date="2026-04-14" name="enacted"/><FRBRauthor href="http://www.legislation.gov.uk/id/legislature/ScottishParliament"/><FRBRcountry value="GB-SCT"/><FRBRnumber value="10"/><FRBRname value="2026 asp 10"/><FRBRprescriptive value="true"/></FRBRWork><FRBRExpression><FRBRthis value="http://www.legislation.gov.uk/asp/2026/10/2026-04-15"/><FRBRuri 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refersTo="#"/></temporalGroup></temporalData><references source="#"><TLCEvent eId="enactment" href="" showAs="EnactmentDate"/><TLCLocation eId="extent-s" href="/ontology/jurisdictions/uk.Scotland" showAs="S"/><TLCConcept eId="status-prospective" href="" showAs="Prospective"/></references><notes source="#"><note ukl:Name="Commentary" ukl:Type="I" class="commentary I" eId="key-d14ad5b6c2946684ba87b86beb4037d4" marker="I1"><p>S. 20  not in force at Royal Assent, see <ref eId="n3588d346d1f0d164" class="subref operative" href="http://www.legislation.gov.uk/id/asp/2026/10/section/29/2">s. 29(2)</ref></p></note></notes><proprietary xmlns:ukm="http://www.legislation.gov.uk/namespaces/metadata" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dct="http://purl.org/dc/terms/" source="#"><dc:identifier>http://www.legislation.gov.uk/asp/2026/10/section/20</dc:identifier><dc:title>Contract (Formation and Remedies) (Scotland) Act 2026</dc:title><dc:language>en</dc:language><dc:publisher>Statute Law Database</dc:publisher><dc:modified>2026-05-22</dc:modified><dc:contributor>Expert Participation</dc:contributor><dct:valid>2026-04-15</dct:valid><ukm:PrimaryMetadata><ukm:DocumentClassification><ukm:DocumentCategory Value="primary"/><ukm:DocumentMainType Value="ScottishAct"/><ukm:DocumentStatus Value="revised"/></ukm:DocumentClassification><ukm:Year Value="2026"/><ukm:Number Value="10"/><ukm:EnactmentDate Date="2026-04-14"/><ukm:ISBN Value="9780105904540"/></ukm:PrimaryMetadata><ukm:Notes><ukm:Note IdURI="http://www.legislation.gov.uk/id/asp/2026/10/section/20/notes" DocumentURI="http://www.legislation.gov.uk/asp/2026/10/section/20/notes"/><ukm:Alternatives><ukm:Alternative URI="http://www.legislation.gov.uk/asp/2026/10/pdfs/aspen_20260010_en.pdf" Date="2026-07-27" Title="Explanatory Note" Size="1215379"/></ukm:Alternatives></ukm:Notes><ukm:Alternatives><ukm:Alternative URI="http://www.legislation.gov.uk/asp/2026/10/pdfs/asp_20260010_en.pdf" Date="2026-05-12" Size="1273211"/></ukm:Alternatives><ukm:Statistics><ukm:TotalParagraphs Value="30"/><ukm:BodyParagraphs Value="30"/><ukm:ScheduleParagraphs Value="0"/><ukm:AttachmentParagraphs Value="0"/><ukm:TotalImages Value="0"/></ukm:Statistics></proprietary></meta><body eId="body"><part eId="part-2"><num>Part 2</num><heading>Remedies for Breach of Contract</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-rescission-for-breach-of-contract"><heading>Rescission for breach of contract</heading><section eId="section-20" uk:target="true"><num>20</num><heading>Compensation for reduction in value of a returned benefit</heading><subsection eId="section-20-1"><num>(1)</num><content><p>This section applies where the recipient is required, by section 18(6), to transfer a benefit.</p></content></subsection><subsection eId="section-20-2"><num>(2)</num><content><p>The recipient must pay compensation for any reduction in the value of the benefit as a result of a change in the condition of the benefit between the time of receipt and the time of transfer to the other party.</p></content></subsection><subsection eId="section-20-3"><num>(3)</num><intro><p>But the recipient’s liability to pay compensation under subsection (2) is reduced to the extent that the change in condition is a result of—</p></intro><level class="para1" eId="section-20-3-a"><num>(a)</num><content><p>the non-performance of an obligation owed by the other party to the recipient (being an obligation under the contract), or</p></content></level><level class="para1" eId="section-20-3-b"><num>(b)</num><content><p>conduct of the recipient in the reasonable, but mistaken, belief that the other party’s performance of an obligation so owed conformed with the contract.</p></content></level></subsection></section></hcontainer></part></body></act></akomaNtoso>