What is supposed to happen if there is an error in a vim script?

IF vim recognizes an error in a script, what does it do?
Where are the rules for this detailed?

Suppose that while editing file.foo, I initiate a script
e.g. :so myscript.vim
and there is an error
e.g. the script looks for a non existing pattern in file.foo
After issuing its error message what is the expected action
for the general case:
1. The script is immediately terminated, returning to the
invocation point?
2. After possibly issuing an error message,
the script continues trying to execute with its next command.
In this case as if the search for the pattern had not failed?

Are these kinds of exception rules spelled out explicitly
anywhere in the available documentation?
Not just mentioned in passing by an example!

In my simple test case, it appears that 2. is the rule.
But of course I'm just seemingly poking a black box.
--
Rostyk

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