§ Ms Roseanna CunninghamTo ask the Chancellor of the Exchequer upon what basis the choice of law clauses and exclusive jurisdiction clauses relating to English law and the English courts have been inserted into tendering contracts by H. M. Customs and Excise for civil recovery services. [34409]
§ Dawn Primarolo[holding answer March 1998]: Civil recovery services undertaken in Scotland are governed by Scots Law. The strategy adopted by Customs in stipulating that the civil recovery services contracts, including the contract in Scotland, would be governed by English law was based on legal and practical grounds which are set out.
Under contract law, the proper law of the contract is that which the parties stipulate;Due to the complexity of these contracts, the need to establish uniformity and the fact that a single service provider may provide services in two countries eg England and Scotland, a policy decision was taken to stipulate that the contracts will be governed by English Law;The aforementioned was influenced by the fact that the majority of the service requirement under the contracts would fall within English law; andThe overall contract management and policy responsibility for civil recovery services in Customs is located in England.However, there is an opportunity for tenderers to register any disagreement with the General Conditions of Contract as an integral part of the tender process. The resolution of any disagreements would be a matter for post tender negotiation between Customs and the successful tenderer before award of Contract. Customs will not object to a request that the Contract be governed by Scots Law, if the service provider is based in Scotland.