Scottish Bank Notes Should Be Accepted, Says Browne

by Stewart Douglas

Story link: Scottish Bank Notes Should Be Accepted, Says Browne

The Scottish Secretary Des Browne has publicly criticised a fundamental facet of contract law in the UK which prevents Scottish bank notes from having the same legal enforceability as their English counterparts nationwide, in what has been described as an “irritation” and often results in the rejection of Scottish bank notes, despite the fact that they are in practice as valuable as any other note.

According to Des Browne, the problem lies in the fact that parties are free to contract with whom they like, and by the same token are free to reject a deal on any which basis they choose.  Whilst this provides vital protections to commerce, it is also particularly inconvenient for Scottish note users, on the basis that there is no obligation under the law for a retailer to accept notes other than those issued directly by the Bank of England.

However, a significant anomaly arises from the fact that all bank notes issued are authorised indirectly by the Bank of England, yet Scottish notes are unable to enjoy the same protections as those south of the border, which cannot legally be a ground for rejection of a particular transaction anywhere in the UK.

According to the minister, the problem lies far more predominantly with Scottish notes, even as compared to their Northern Irish counterparts which have a similar legal status yet are apparently more widely accepted south of the border, according to reports linked to the Scottish Secreatry’s statements.

“The fundamental problem here is that the law of contract across the United Kingdom allows people not to engage in a transaction at the point of payment if they don’t want to,” said Browne.

“This irritation in the 21st Century shouldn’t be here. The best thing to do is to take every opportunity to tell people that these notes are as good as anybody else’s and should be accepted.”