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					<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>
					
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					<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>
					

                    
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				</ukm:Metadata><Primary><Body DocumentURI="http://www.legislation.gov.uk/asp/2026/10/body" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/body" NumberOfProvisions="30" RestrictExtent="S" RestrictStartDate="2026-04-15"><Part DocumentURI="http://www.legislation.gov.uk/asp/2026/10/part/2" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/part/2" NumberOfProvisions="11" id="part-2" RestrictExtent="S" Match="false" Status="Prospective"><Number>Part 2</Number><Title>Remedies for Breach of Contract</Title><Pblock DocumentURI="http://www.legislation.gov.uk/asp/2026/10/part/2/crossheading/rescission-for-breach-of-contract" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/part/2/crossheading/rescission-for-breach-of-contract" NumberOfProvisions="4" Match="false" Status="Prospective" id="part-2-crossheading-rescission-for-breach-of-contract" RestrictExtent="S"><Title>Rescission for breach of contract</Title><P1group Match="false" Status="Prospective" RestrictExtent="S"><Title>Compensation for reduction in value of a returned benefit</Title><P1 DocumentURI="http://www.legislation.gov.uk/asp/2026/10/section/20" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/section/20" id="section-20">
<Pnumber><CommentaryRef Ref="key-d14ad5b6c2946684ba87b86beb4037d4"/>20</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/asp/2026/10/section/20/1" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/section/20/1" id="section-20-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>This section applies where the recipient is required, by section 18(6), to transfer a benefit.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/asp/2026/10/section/20/2" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/section/20/2" id="section-20-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>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.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/asp/2026/10/section/20/3" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/section/20/3" id="section-20-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>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—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/asp/2026/10/section/20/3/a" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/section/20/3/a" id="section-20-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the non-performance of an obligation owed by the other party to the recipient (being an obligation under the contract), or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/asp/2026/10/section/20/3/b" IdURI="http://www.legislation.gov.uk/id/asp/2026/10/section/20/3/b" id="section-20-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>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.</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1></P1group></Pblock></Part></Body></Primary><Commentaries><Commentary Type="I" id="key-d14ad5b6c2946684ba87b86beb4037d4"><Para><Text>S. 20  not in force at Royal Assent, see <CitationSubRef id="n3588d346d1f0d164" SectionRef="section-29-2" URI="http://www.legislation.gov.uk/id/asp/2026/10/section/29/2" Operative="true">s. 29(2)</CitationSubRef></Text></Para></Commentary></Commentaries></Legislation>