Rights and liabilities of the Crown in different capacities.

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.