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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 Bueng Kum, Thailand

Contract law in Bueng Kum follows national Thai law under the Civil and Commercial Code. Bueng Kum is a district in Bangkok with many residential communities and small-to-medium businesses, so common contracts include residential leases, hire-purchase of vehicles and appliances, service and supply agreements, construction and renovation contracts, employment and contractor arrangements, and personal loan or guarantee agreements. Thai contract law focuses on consent between capable parties, a lawful purpose, and any formalities required by law. While the rules are national, local offices in Bangkok handle registrations and administrative steps that affect certain contracts, such as real estate and company matters.

Why You May Need a Lawyer

You may benefit from legal help in the following situations:

- Drafting or reviewing a contract to make sure key clauses on payment, scope, delivery, liability, penalties, termination, and dispute resolution are clear and enforceable under Thai law.

- Preparing bilingual Thai-English contracts and ensuring the correct prevailing language clause is used, since courts require Thai language and translations.

- Negotiating residential or commercial leases that must comply with Thai consumer and rental rules, especially where the landlord operates multiple units.

- Structuring and registering property transactions at the Bangkok Land Office, including leases over three years, mortgages, usufructs, and condo unit transfers.

- Ensuring statutory writing requirements are met for guarantees, suretyship, hire-purchase, and agency agreements, and that signatures, witnesses, and stamps are correct.

- Handling stamp duty, withholding tax, and VAT implications tied to the contract, and allocating who pays in the contract text.

- Advising on electronic signatures, online contracting, and data protection obligations for e-commerce or app-based services.

- Managing contract breaches, sending formal demand letters, preserving evidence, and pursuing settlement, mediation, arbitration, or litigation in Bangkok courts.

- Protecting your interests in cross-border or foreign-law contracts, and addressing enforceability in Thailand, including the use of arbitration clauses.

Local Laws Overview

- Formation and validity: A contract is formed by offer and acceptance with intent to be bound. Parties must have capacity and the object must be possible, lawful, and not against public order or good morals. Unlike common law, consideration is not required under Thai law.

- Capacity: Minors under 20 generally need a legal representative to enter contracts, except for routine matters suited to their condition or where they have been declared sui juris by marriage or court order.

- Writing and registration: Some contracts must be in writing to be enforceable, including guarantees and hire-purchase. Certain transactions must be registered with authorities, for example sales and mortgages of immovable property and leases over three years, which are registered at the relevant Bangkok Land Office branch that serves Bueng Kum.

- Language: Thai is the court language. Bilingual contracts are common. A prevailing language clause should specify which text controls if there is a conflict.

- Electronic transactions: The Electronic Transactions Act recognizes e-signatures and e-records if reliability requirements are met. Some transactions still require in-person registration, such as transfers of land or long-term leases.

- Consumer protection and unfair terms: The Unfair Contract Terms Act prohibits terms that unreasonably disadvantage consumers. Certain businesses must use contract forms that comply with regulations, such as residential leases where a landlord operates five or more units. These rules can require clear fee disclosures, receipt issuance, deposit return timelines, and limit harsh termination terms.

- Lease specifics: A lease exceeding three years must be registered to bind third parties for the full term, otherwise it is enforceable for up to three years. Residential lease rules for contract-controlled businesses impose mandatory and prohibited clauses to protect tenants.

- Guarantees and suretyship: A guarantee must be in writing. Reforms limit guarantor liability, require clarity of the guaranteed amount, and give guarantors certain defenses. Creditors often must first pursue the principal debtor unless the contract validly provides otherwise.

- Penalties and liquidated damages: Contractual penalties and agreed damages are generally enforceable, but courts can reduce an excessive amount to a reasonable level.

- Interest rate: If a contract is silent, the statutory interest rate applies. The legal and default rates are set by law and may change from time to time. Parties can agree on interest within legal limits.

- Limitation periods: Time limits to sue vary. The general period is ten years, with shorter periods for specific claims. For many routine commercial claims the period can be shorter, so prompt action is important.

- Stamp duty and taxes: Certain instruments are subject to Thai stamp duty, and some payments trigger withholding tax or VAT. Leases, hire-purchase, loans, and share transfers often have stamp duty implications. Contracts commonly allocate which party pays.

- Dispute resolution: Parties can choose courts, mediation, or arbitration. Thailand is a party to the New York Convention, and the Arbitration Act supports enforcement of arbitration agreements and awards. Mediation is encouraged by Thai courts, including in Bangkok.

- Notarisation and legalization: Thai law rarely requires notarisation, but foreign recipients may. Notarial Services Attorneys can notarise documents in Thailand. Documents for use abroad often require legalization by the Ministry of Foreign Affairs and the relevant embassy.

Frequently Asked Questions

Is a verbal agreement enforceable in Thailand?

Yes, many oral contracts are enforceable if you can prove their terms. However, some contracts must be in writing, such as guarantees and hire-purchase, and land-related transactions must be registered. For practical reasons, a written contract is strongly recommended.

Do I need a Thai-language contract for use in Bueng Kum?

Courts operate in Thai, so a Thai version or certified translation is needed for enforcement. Bilingual contracts are common. Include a prevailing language clause to avoid conflicts.

Can a foreigner sign and enforce a contract in Thailand?

Yes. Foreigners can enter into contracts. For certain activities there may be licensing, visa, or foreign business restrictions. Evidence and signatures may require notarisation or legalization when used outside Thailand.

Are electronic signatures valid on contracts?

Yes, under the Electronic Transactions Act, if the method identifies the signer and indicates approval, and is reliable for the purpose. Some transactions, such as transfers or long-term leases of land, still require in-person registration.

What should a residential lease in Bueng Kum include?

At minimum, clear rent and fees, deposit amount and return timeline, maintenance responsibilities, notice and termination terms, and meter-based utility billing. If the landlord operates five or more residential units, special consumer lease rules apply that restrict unfair terms and require deposit return within a set period.

How are deposits and key money treated?

Deposits should be documented and receipted, and must be returned within the legal or agreed period after move-out, less lawful deductions. Key money or advance fees must be clearly disclosed. Certain consumer lease rules limit abusive fee practices.

Do I need to pay stamp duty on my contract?

Many instruments are subject to stamp duty. Examples include leases, hire-purchase, loan agreements, and share transfers. Duty is usually low but non-payment can affect enforceability and lead to surcharges. Contracts can state which party bears the duty.

Can we choose foreign law or arbitration for our contract?

Parties can choose foreign law if the contract has an international element, but mandatory Thai rules may still apply, especially for immovable property and consumer protection. Arbitration clauses are generally enforceable in Thailand and can be a good option for cross-border contracts.

What happens if the other party breaches?

You may demand performance, suspend your own performance, claim damages, enforce any penalty clause, or terminate if the breach is material or under an agreed termination clause. Send a clear written demand and keep evidence. Court or arbitration may follow if settlement fails.

How long do I have to bring a claim?

It depends on the claim type. The general limitation period is ten years, but shorter periods apply to many commercial claims. Because deadlines can be complex, seek advice promptly to avoid losing your rights.

Additional Resources

- Bueng Kum District Office for local administrative matters and certifications.

- Bangkok Land Office branch serving Bueng Kum for land registrations, leases over three years, and related filings.

- Office of the Consumer Protection Board for consumer contract issues and complaints, including standard form contracts.

- Department of Business Development for company registry records and certified corporate documents.

- Thai Arbitration Institute and Thailand Arbitration Center for arbitration rules and case administration.

- Ministry of Digital Economy and Society and the Office of the Personal Data Protection Committee for PDPA compliance guidance related to contractual data processing.

- Bangkok Civil Court and mediation centers for dispute filing and court-annexed mediation.

- Lawyers Council of Thailand Legal Aid Centers for general legal assistance eligibility and referrals.

Next Steps

- Clarify your goals and deal-breakers. List the outcomes you need, acceptable timelines, and budget.

- Gather documents and evidence. Keep drafts, emails, chat logs, invoices, photos, payment records, and delivery notes in chronological order.

- Check formalities. Identify if your contract requires writing, witnesses, registration, stamps, or corporate approvals.

- Allocate taxes and fees. Decide who pays stamp duty, withholding tax, and VAT, and reflect that in the contract.

- Choose governing law and dispute forum suitable for your situation, noting Thai mandatory rules and local enforcement realities.

- Use a bilingual contract if any party prefers English, and include a clear prevailing language clause.

- Seek local legal advice. A lawyer familiar with Bueng Kum and Bangkok practice can tailor terms, ensure compliance, and manage registrations or filings.

- If a dispute has arisen, send a concise written demand, consider mediation, and act within limitation periods. Do not sign acknowledgments or settlement terms without legal review.

This guide provides general information only. Laws and rates change, and outcomes depend on specific facts. Consult a qualified Thai lawyer for advice on your particular matter in Bueng Kum.

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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.