ABSTRACT
The original sources of Scots law are quite different from those of English law. There are some interesting parallels and distinctions to be drawn with English law and practice in the context of early termination of lease contracts. Scots law, like most civilian based systems and unlike common-law based systems, takes a strict view of what is required to create a valid security. The landlord's hypothec is a form of security for rent which extends to goods situated on leased premises, even in some circumstances where those goods belong to a third party and not to the tenant/lessee. Accordingly, creating a trust over property as a security for borrowings has been regarded as invalid under Scots law. Indeed a Uniform Commercial Code type arrangement for the registration of such financing interests would be a welcome reform in many people's view in Scots law.
