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Thailand Contract Legal Questions answered by Lawyers

Browse our 5 legal questions about Contract in Thailand and the lawyer answers, or ask your own questions for free.

Terminate Lease Agreement
Contract Landlord & Tenant
Hello, I'm the owner of a villa and want to evict my tenant based on the following clause of the agreement: "In the event of a breach of these obligations by the TENANT, or if the property is used in a manner deemed abusive, the OWNER reserves the right to... Read more →
Lawyer answer by SORASAK LAWFIRM

We, SORASAK LAW OFFICE AND INTERNATIONAL CONSULTANT CO., LTD, Legal firm located in Bangkok. We have experience and have been providing a wide range of legal services to both Thai and foreign clients for 20 years. Yours Faithfully,

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1 answer
Family law
Contract Family
Hello. My husband and I are foreigners living in Thailand for 6 years. We have signed a contract regulating our mutual obligations. Is the contract legally binding without the signature and seal stamp of a lawyer or intermediary lawyer? How much does it cost to conclude such a contract, and... Read more →
Lawyer answer by Kanasra & Mangi Law Associates

It is not mandatory for a contract to have a lawyer’s signature or seal to be legally binding in Thailand. A contract without a lawyer’s signature or seal can still be enforceable as long as it meets the legal requirements....

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1 answer
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
I purchased a new 65' Power Catamaran from a boat builder which was to be completed in 10 months 2.5 years ago here in Rayong. They started construction on March 1st, 2021 and they are still not finished. Payment was agreed to in 8 installments of 175,000US for a total... Read more →
Lawyer answer by Max Law Firm International

Max Law Firm International. We are a full service law firm based in Bangkok, Thailand serving with all legal services to locals and expats since 2010. Our team of experienced lawyers are readily available to help you. We response the...

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1 answer

About Contract Law in Bueng Kum, Thailand

Bueng Kum is a district in Bangkok where individuals, families, and small to mid sized businesses frequently enter into contracts for rentals, sales, services, employment, franchising, and technology. Contract law in Bueng Kum follows national Thai law, especially the Civil and Commercial Code, the Consumer Protection Act, the Unfair Contract Terms Act, and the Electronic Transactions Act. Courts and administrative offices that serve Bangkok handle contract matters that arise in Bueng Kum, and many Bangkok based lawyers are familiar with local practices and paperwork.

In Thailand, a contract is formed when there is a lawful offer and acceptance, capacity of the parties, clear terms, and a lawful purpose. Many contracts can be oral, but several important types must be in writing or registered. Examples include sales and leases of land, leases of immovable property exceeding three years, and guarantees. Thai and English contracts are both used in practice, although Thai language is generally preferred in government offices and courts. Electronic signatures are recognized for most private transactions, provided reliability and intent can be shown.

Why You May Need a Lawyer

People in Bueng Kum often seek legal help for contract work in situations such as renting or leasing a house or shop unit, buying or selling a vehicle, forming supplier and distributor agreements, hiring employees or consultants, franchising a food or retail brand, commissioning software or creative work, investing in a small business, and settling consumer disputes. A lawyer can help you identify which contracts must be in writing or registered, check whether stamp duty is required, ensure compliance with consumer and data protection laws, and confirm that the person who signs has corporate authority.

Legal advice is especially helpful when the amount at stake is significant, when one party provides a standard form agreement, when terms limit liability or impose penalties, when personal guarantees or collateral are requested, or when there is a need for cross border enforceability. If a dispute arises, a lawyer can advise on negotiation, mediation, arbitration, and court procedures, including which court in Bangkok has jurisdiction and how to preserve your rights within limitation periods.

Local Laws Overview

Formation and validity. A valid Thai contract requires capacity, consent, a lawful and possible object, and certainty of terms. Contracts can be oral, but certain categories require writing or registration. Courts may set aside agreements that are illegal or against public order or good morals.

Writing, registration, and formalities. Sale or lease of land, leases of immovable property exceeding three years, mortgages, and certain gifts must be in writing and registered with the Land Department. Guarantees and some other undertakings must be in writing and signed. Two witnesses are advisable for real estate documents taken to the Land Department. Notarization is not usually required for domestic contracts, but it is used for documents to be used overseas.

Electronic transactions. The Electronic Transactions Act recognizes electronic contracts and electronic signatures, if they reliably identify the signatory and show intent to be bound. Some government registrations and high formalities transactions may still require wet ink signatures or in person filings.

Consumer protection and unfair terms. The Consumer Protection Act and Notifications of the Contract Committee regulate standard form contracts in sectors such as leasing, hire purchase, condominium sales, and fitness or education services. The Unfair Contract Terms Act restricts unfair terms, including attempts to exclude liability for fraud or gross negligence. Businesses using templates in Bueng Kum should ensure their forms comply.

Stamp duty and taxes. Many instruments, including loans, guarantees, hire of work, and leases, may be subject to stamp duty. Failure to affix the correct duty can affect admissibility of the document as evidence until duty and surcharges are paid. Real estate transactions may attract transfer fees, specific business tax, or withholding tax, handled at the Land Department.

Limitation periods. Time limits to bring claims in Thailand were updated in recent amendments. The general period for contractual claims has been shortened, with specific categories having shorter periods. The exact period depends on the nature of the claim, so it is important to seek advice promptly to avoid missing a deadline.

Interest and penalties. Parties can agree on interest rates and liquidated damages, subject to caps and fairness rules set by law. Thai courts may reduce penalties that are clearly excessive. Statutory interest rates change from time to time by ministerial regulation if no contractual rate applies.

Data privacy. The Personal Data Protection Act applies to contracts that involve collecting or sharing personal data. Contracts with service providers should include appropriate data processing clauses, including purpose, security, and data subject rights.

Governing law, jurisdiction, and dispute resolution. Parties can choose governing law and dispute forum in many business contracts. Thai courts will apply Thai mandatory rules for matters closely connected to Thailand, especially consumer issues. Arbitration is common for higher value cross border deals, with institutions such as the Thai Arbitration Institute and Thailand Arbitration Center in Bangkok. Thai courts promote mediation before trial.

Local procedure in Bangkok. Smaller civil claims connected with Bueng Kum are often filed in a Kwaeng Court that has monetary jurisdiction, while larger or more complex civil cases go to a court of first instance in Bangkok. Specialized courts handle labor, intellectual property and international trade, tax, and bankruptcy matters. Enforcement of judgments is carried out by the Legal Execution Department.

Frequently Asked Questions

What makes a contract valid in Thailand?

A Thai contract is valid when there is a clear offer and acceptance, capacity of the parties, lawful and possible purpose, and certainty. Some agreements must be in writing or registered, such as land transactions and guarantees. Consent obtained by fraud, mistake, or duress can be voidable.

Do contracts need to be in Thai language?

No, but Thai is preferred for filings and court use. Bilingual contracts are common, and a Thai version often states it prevails in case of conflict. If you sign an English language contract, ensure you fully understand it and consider obtaining a certified Thai translation for official use.

Are electronic signatures valid in Thailand?

Yes, under the Electronic Transactions Act, electronic signatures are generally valid if the method reliably identifies the signer and shows intent to sign. Certain registrations and some high formality transactions still require physical signatures or in person procedures.

When must a contract be registered?

Sales and leases of immovable property, leases of immovable property exceeding three years, mortgages, and some gifts must be registered with the Land Department. Unregistered long leases are enforceable only for up to three years. Check form requirements before signing.

What is the typical court for a contract dispute from Bueng Kum?

Jurisdiction depends on claim value, subject matter, and where the contract was performed or breached. Smaller value civil claims connected to Bueng Kum may be filed in a Kwaeng Court that serves the area, while higher value and complex cases are filed in a Bangkok court of first instance. Some matters go to specialized courts or arbitration if agreed.

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

Limitation periods vary by claim type and have been shortened by recent legal amendments. Some claims have a shorter period counted from the date of breach or from when you knew or should have known of the breach. Ask a lawyer promptly to determine the correct deadline in your case.

Are non compete clauses enforceable?

Yes, if reasonable in scope, geography, duration, and necessary to protect legitimate interests such as trade secrets. Overbroad restraints are at risk of being reduced or not enforced by Thai courts. Tailor restrictions to specific roles and information.

What clauses are commonly considered unfair or unenforceable?

Clauses that waive liability for fraud or gross negligence, impose excessive penalties, allow unilateral change without reason, or deprive consumers of essential rights can be unenforceable. Sector specific rules also require certain disclosures and minimum protections in standard form contracts.

Do I need to pay stamp duty on my agreement?

Several types of agreements, such as loans, guarantees, hire of work, and leases, are subject to stamp duty. If duty is not affixed, the document may be inadmissible in court until duty and a surcharge are paid. A lawyer can identify the correct instrument and duty treatment.

Can I choose foreign law and arbitration for my contract?

In many business to business contracts you can choose foreign law and arbitration in Thailand or abroad. Thai mandatory rules may still apply to issues closely linked to Thailand, especially for consumers and real estate. Arbitration awards are generally enforceable in Thailand, while foreign court judgments are not directly enforceable and may require a new lawsuit in Thailand.

Additional Resources

Office of the Consumer Protection Board. Handles consumer complaints and oversees standard form contract regulations through the Contract Committee.

Department of Business Development, Ministry of Commerce. Company registrations, specimen objectives, and guidance on corporate authorities and filings relevant to who can sign on behalf of a company.

Department of Lands. Registration of sales, leases, mortgages, and related real estate transactions for properties located in Bangkok, including those affecting Bueng Kum residents and businesses.

Legal Execution Department. Enforcement of civil judgments and arbitral awards, including seizure and sale of assets.

Thai Arbitration Institute and Thailand Arbitration Center. Institutional support for domestic and international arbitrations seated in Bangkok.

Court of Justice Mediation Centers. Court annexed mediation services for civil disputes to encourage early settlement.

Personal Data Protection Committee Office. Guidance on PDPA compliance that should be reflected in service and outsourcing agreements.

Next Steps

Clarify your objectives. List what you want the contract to achieve, key dates, deliverables, price, payment terms, and acceptable risks. Identify any licenses or registrations that apply.

Assemble documents. Gather drafts, emails, quotations, prior agreements, company affidavits, ID cards, house registration pages for individuals, and title documents for any property involved.

Check form and registration needs. Confirm whether the agreement must be in writing, signed in a specific way, witnessed, stamped, or registered with an authority like the Land Department.

Consult a local lawyer. Lawyers based in Bangkok routinely serve Bueng Kum. Ask for a written scope of work, fee structure, estimated timeline, and a list of items they need from you. Request that important terms be explained in plain language.

Negotiate and document. Use clear and measurable terms, state governing law and dispute resolution, address data protection, confidentiality, intellectual property, and termination. Ensure the signatory has authority and that company chops or seals used match corporate records if applicable.

Plan for enforcement. Include practical dispute steps, such as negotiation and mediation before litigation, specify the forum, and retain copies of all signed pages, exhibits, and proof of payments. Keep originals of stamped documents in a safe place.

Monitor performance. Track milestones and deadlines, record variations in writing, and address issues promptly to protect your position within applicable limitation periods.

If a dispute arises. Preserve evidence, avoid admissions, review notice clauses, and seek legal advice quickly on strategy, including mediation, arbitration, or filing in the appropriate Bangkok court.

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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.