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Thailand Contract Legal Questions answered by Lawyers

Browse our 6 legal questions about Contract in Thailand and the lawyer answers, or ask your own questions for free.

Family law
Contract
Family
Thank you for your question.   It appears that you are referring to a prenuptial agreement.  If the agreement is properly drafted and signed by both parties prior to the marriage, it should be valid.   However, we would need to review the agreement to provide you with a proper legal opinion.   You may send a copy of the agreement to us. You may contact us directly and discuss this matter with you
A boat builder has not completed the construction of my boat in a reasonable amount of time but has taken 90 percent of the payment. What legal action can I take against him?
Contract
Consumer Protection
Thank you for your question.  Our law firm (SB Law Asia) will be happy to assist you in this regard.  We would like to arrange a free consultation with you.  Please contact us via e-mail at [email protected], via mobile (082-256-3165) or via WhatsApp (+66822563165).  
Breech of contract
Business
Investment
Contract
Our firm (SB Law Asia) are experts in Thai company law and in litigation and dispute resolution.   We would be happy to provide you with a free consultation.  Please contact us via e-mail at:  [email protected] or by phone at:  082-256-3165.

About Contract Law in Bang Khun Thian, Thailand

Bang Khun Thian is a coastal district of Bangkok with a mix of residential neighborhoods, light industry, warehousing, logistics, seafood processing, and growing real estate development. Contracts in this area commonly involve leases of warehouses and shop-houses, supply and distribution agreements, employment and services, construction, and joint ventures. Thai contract law applies uniformly across Thailand, including Bang Khun Thian, and is primarily governed by the Civil and Commercial Code. Most day-to-day agreements can be made in simple written form, and many are enforceable even if oral. However, some transactions must follow specific formalities such as written form, official registration, or payment of stamp duty to be enforceable or admissible in court.

Local practice in Bang Khun Thian often requires bilingual agreements for cross-border trade and manufacturing, careful attention to Thai language documents for use with government offices, and proper registrations at the Bangkok Land Office for real property agreements. Working with a local lawyer helps ensure your contract is valid, enforceable, and consistent with Thai law and local procedures.

Why You May Need a Lawyer

You may need a lawyer when drafting or reviewing contracts to ensure terms are clear, enforceable, and compliant with Thai law. This is especially important when the agreement involves significant value, long-term commitments, or foreign parties. A lawyer can identify hidden risks, propose practical protections, and negotiate terms tailored to your goals.

Property transactions in Bang Khun Thian often require legal help, such as registering a lease longer than three years or a mortgage at the Land Office. A lawyer can prepare registration-ready documents in Thai, coordinate with officials, and manage timelines.

Business contracts, including supply, distribution, franchise, and service agreements, benefit from legal guidance on price adjustments, delivery obligations, liability caps, indemnities, confidentiality, non-compete, and termination rights. Counsel can also advise on stamp duty, withholding tax, and value added tax allocations to avoid disputes.

If a dispute arises, a lawyer can assess your options, send a demand letter, engage in mediation or arbitration, and represent you in Thai courts. Local counsel understands court procedures, filing requirements, and evidence rules that can make or break a case.

Special situations that commonly require legal help include guarantees and collateral arrangements, employment contracts and non-compete clauses, construction agreements with milestones and liquidated damages, intellectual property licensing, cross-border deals that need notarization or legalization, and consumer contracts subject to unfair terms controls.

Local Laws Overview

Thai Civil and Commercial Code governs contract formation, performance, breach, and remedies. A contract forms when there is a lawful offer and acceptance with a clear intention to create legal relations, a definite subject matter, and terms that are not contrary to law or good morals. Consideration in the common law sense is not required under Thai law.

Formalities vary. Many contracts can be oral, but certain types must be in writing, and some must be registered with the competent authority. Common examples include sale of immovable property that must be in writing and registered, and leases of immovable property of three years or more that must be in writing and registered to be enforceable beyond the three-year period. Guarantees must be in writing and signed by the guarantor, with additional consumer safeguards that limit overbroad liabilities.

Electronic Transactions Act recognizes electronic contracts and signatures. An e-signature is valid if it reliably identifies the signer and indicates approval, and if the parties agree to transact electronically. For filings with Thai authorities, a wet-ink Thai document may still be required depending on the agency.

Unfair Contract Terms Act and Consumer Protection Act regulate standard form contracts and prohibit clauses that unreasonably disadvantage consumers. Sector-specific regulations prescribe mandatory clauses for certain services such as condo developers or personal loans.

Evidence and admissibility rules matter. Courts may prefer documentary evidence signed by the party to be charged. Keeping originals, written confirmations, tax invoices, delivery notes, and proof of payment will greatly strengthen your position if a dispute occurs. Some instruments require stamp duty, and an unstamped instrument that is duty-bearing may face penalties or restrictions on use in court until duty and surcharges are paid.

Prescription periods limit how long you have to bring a claim. The general period for contractual claims is long, but shorter periods apply to certain types of claims. Always confirm the applicable limitation period early to protect your rights.

Damages and penalties are available for breach. Thai courts can award expectation damages, and they may reduce a penalty or liquidated damages amount if it is unreasonably high. Specific performance or rescission may be available depending on the circumstances and contract terms.

Language and governing law are practical issues. Bilingual contracts are common in Bang Khun Thian. For dealings with Thai authorities, a Thai version is usually required, and it often prevails in case of inconsistency. Parties may choose foreign law for private contracts if it does not violate Thai public order, but rights in Thai immovable property are generally governed by Thai law. Arbitration clauses are widely used and enforceable under the Arbitration Act. Thailand is a party to the New York Convention on recognition and enforcement of foreign arbitral awards.

Security for obligations can be arranged through pledges, mortgages, and security interests under the Business Security Act, which allows security over movable assets and business receivables by registration with the Department of Business Development.

Employment and contractor arrangements in Bang Khun Thian must respect the Labor Protection Act, Social Security Act, and Personal Data Protection Act. Misclassification of employees as contractors can cause liabilities. Data processing in service contracts should comply with the Personal Data Protection Act.

Frequently Asked Questions

Are oral contracts enforceable in Thailand?

Yes. Many contracts are valid even if made orally. However, some agreements must be in writing, and certain transactions require official registration. Proving an oral contract can be difficult, so written agreements are strongly recommended, along with evidence such as emails, invoices, and delivery notes.

Do my contracts need to be in Thai?

For dealings with Thai authorities such as the Land Office, a Thai language document is typically required. For private transactions, parties often use bilingual contracts in Thai and another language. It is common to include a clause that the Thai version prevails in case of conflict.

Are electronic signatures valid for contracts in Bang Khun Thian?

Yes. Under the Electronic Transactions Act, electronic contracts and signatures are generally valid if they reliably identify the signer and indicate intent to be bound. Some filings with government offices may still require wet-ink signatures or specific digital signature standards.

What makes a contract valid under Thai law?

There must be a lawful offer and acceptance, clear terms, legal capacity of parties, and an object and purpose that are not contrary to law or good morals. Required formalities must be met, such as written form, signatures, stamp duty, and registration where applicable. Company signatories must sign in accordance with the company affidavit and any seal requirements.

Do leases in Bang Khun Thian need to be registered?

Leases of immovable property for a term of three years or more must be in writing and registered at the competent Land Office to be enforceable beyond three years. Shorter leases do not require registration but written terms are advisable to avoid disputes.

How long do I have to sue for breach of contract?

Limitation periods vary by claim type. The general period for contractual claims is longer, but specific claims may have shorter periods. You should consult a lawyer promptly to identify the applicable deadline and send a formal demand if needed.

Can we include a penalty or liquidated damages clause?

Yes. Thai law allows agreed damages. Courts may reduce the amount if it is unreasonably high compared to the actual loss. Draft the clause to reflect a genuine pre-estimate of loss and define clear trigger events and calculation methods.

What if the other party is a foreign company?

You can contract with foreign parties. Consider governing law, dispute forum, currency, tax withholding, translation needs, and notarization or legalization of corporate documents. If the deal involves restricted business activities, the Foreign Business Act may apply and licensing may be needed.

Do I need to pay stamp duty on my contract?

Certain instruments listed under the Stamp Duty Act are subject to stamp duty, such as hire-purchase, service agreements, leases, and loans. Paying the correct duty on time avoids penalties and supports admissibility in court. Your lawyer can confirm whether your document is duty-bearing and arrange stamping.

How are disputes resolved in Bang Khun Thian?

Disputes can be resolved through negotiation, court-annexed mediation, independent mediation, arbitration, or litigation in the competent Bangkok court for the district. Many contracts include arbitration clauses. A lawyer can advise on the most efficient route based on the contract and facts.

Additional Resources

Thon Buri Civil Court - Handles civil and commercial disputes that arise in Bang Khun Thian and nearby districts, including breach of contract claims and enforcement of judgments.

Bang Khun Thian District Office - A Bangkok Metropolitan Administration office that provides local administrative services and guidance on district procedures relevant to residents and businesses.

Bangkok Land Office - Bang Khun Thian Branch - Registers transfers, mortgages, and leases of immovable property located in Bang Khun Thian, and provides official title information.

Department of Lands - Oversees nationwide land registrations, title deeds, and land office practices that impact real property contracts.

Department of Business Development - Provides corporate registrations, company affidavits, and the Business Security Registration system for security interests over movable assets.

Office of the Consumer Protection Board - Regulates unfair contract terms in consumer agreements and offers complaint mechanisms for consumers.

Thai Arbitration Institute - Office of the Judiciary - Provides arbitration and mediation services suitable for commercial contract disputes.

Thailand Arbitration Center - An independent institution offering domestic and international arbitration and mediation services for contract disputes.

Legal Execution Department - Enforces civil judgments and arbitral awards, including seizure and sale of assets where necessary.

Lawyers Council Under the Royal Patronage - The professional body for Thai lawyers that can help you identify qualified practitioners in Bangkok and Bang Khun Thian.

Next Steps

Clarify your objectives and deal structure. List the key terms you care about such as scope of work, price, payment timing, delivery, quality standards, warranties, liability caps, termination rights, and dispute resolution. Decide which language and law you prefer, and whether arbitration is appropriate.

Gather supporting documents. Collect company affidavits, identification, title deeds or land title copies, site plans, licenses, past purchase orders, invoices, and relevant correspondence. If a director or attorney-in-fact will sign, prepare the required board resolutions and powers of attorney.

Consult a local lawyer early. Ask for a bilingual draft if needed, confirmation of required formalities, and a matrix of risks and protections. In Bang Khun Thian, ensure any property-related agreement is ready for Land Office registration if the term requires it, and confirm stamp duty and tax obligations before signing.

Plan execution and closing. Verify authorized signatories and company seals, choose a secure signing method such as coordinated wet-ink or verified e-signature, and arrange witnesses where useful. For cross-border parties, confirm notarization or legalization requirements in advance to avoid delays.

Protect enforcement and compliance. Keep originals in a secure place, schedule key dates such as renewal and termination notice windows, implement PDPA-compliant data handling, and monitor performance. If a breach occurs, act promptly with a formal notice to preserve rights within the limitation period.

Important note - This guide provides general information and is not legal advice. For advice tailored to your situation in Bang Khun Thian, consult a qualified Thai lawyer.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.