(1)Rights and liabilities may arise between the Crown in right of Her Majesty’s Government in the United Kingdom and the Crown in right of the Scottish Administration by virtue of a contract, by operation of law or by virtue of an enactment as they may arise between subjects.
(2)Property and liabilities may be transferred between the Crown in one of those capacities and the Crown in the other capacity as they may be transferred between subjects; and they may together create, vary or extinguish any property or liability as subjects may.
(3)Proceedings in respect of—
(a)any property or liabilities to which the Crown in one of those capacities is entitled or subject under subsection (1) or (2), or
(b)the exercise of, or failure to exercise, any function exercisable by an office-holder of the Crown in one of those capacities,
may be instituted by the Crown in either capacity; and the Crown in the other capacity may be a separate party in the proceedings.
(4)This section applies to a unilateral obligation as it applies to a contract.
(5)In this section—
“office-holder”, in relation to the Crown in right of Her Majesty’s Government in the United Kingdom, means any Minister of the Crown or other office-holder under the Crown in that capacity and, in relation to the Crown in right of the Scottish Administration, means any office-holder in the Scottish Administration,
“subject” means a person not acting on behalf of the Crown.