Contract (Formation and Remedies) (Scotland) Bill: business and regulatory impact assessment

Costs

Option 1

73. As Option 1 is to do nothing, there would be no additional costs or savings associated with this option. Given the need for change outlined by the chosen Option 2 however, the lack of additional costs imposed by Option 1 would not add any positive value.

Option 2

74. The increased clarity, certainty and modernisation of the law which the implementation of Option 2 would bring would reduce costs. As noted above, the Bill would make the law more accessible to lawyer and layperson alike, which would have the effect of reducing the costs of contracting parties both at the contract formation stage and in any potential litigation.

Training costs

75. An initial training cost and familiarisation cost, principally for solicitors but perhaps also for other professionals in the relevant fields, would be likely. The costs would be small, and would be incurred only on first implementation.

76. Generally, familiarisation costs of any change in the law will be incurred by those providing the training within solicitors’ firms and other relevant organisations. Professional Support Lawyers could, for example, prepare a seminar which will explain the reforms to fee-earners. However, the provision of such training is typically already provided for within a firm’s budget. It is probable that a proportion of the fee that a lawyer charges represents the cost of maintaining the fee-earner’s current legal knowledge. For the fee-earners, there is a requirement that 20 hours of Continuing Professional Development is completed throughout the year so the additional time taken in familiarisation with the new provisions will count towards this figure. It is therefore unlikely that initial training on this Bill would represent a significant additional cost to law firms.