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Browse our 3 legal questions about Contract in Thailand and the lawyer answers, or ask your own questions for free.
Contract law in Chiang Mai, Thailand, follows the basic principles of Thai Contract Law outlined in the Civil and Commercial Code of Thailand. A contract is a written or verbal agreement between two parties, where each party has specific obligations. If these obligations are not fulfilled, there can be legal consequences. Contracts can cover a wide range of matters, from property sales to employment agreements, to services, goods and more. It's important to note that some contracts in Thailand may require written form and may need to be registered to be enforceable.
Legal help is often required in drafting, analyzing, and interpreting contracts to ensure parties are fully aware of their rights, obligations, and the possible ramifications of the contract. A lawyer can also be necessary if a contract dispute arises, or if there's a need to sue for breach of contract. Another common scenario is if a foreigner in Thailand is signing a contract, legal advice is highly recommended to ensure that the terms comply with Thai regulations and that the foreign party understands the terms in their entirety.
The Civil and Commercial Code of Thailand is the core legislation that governs contract law. Key aspects to note about Thai contract law are that the contract terms should be clear, the contract should be created in good faith, and all parties should benefit mutually from the contract. Any misleading or deceptive conduct can lead to contract nullity. Contracts that relate to hiring and service contracts, as well as property and commercial transactions, may have specific requirements for their formation and enforcement.
A: Yes, but since Thai is the official language, any legal disputes will be dealt with in Thai. It's advisable to have contracts bilingual or translated by a certified translator.
Q: What makes a contract void or unenforceable in Thailand?A: Dishonest actions, coercion, impossibility to perform, and conditions against Thai public order or good morals can make a contract void.
Q: Can I break a contract in Thailand?A: Breaking a contract may have legal implications or financial consequences unless it is justified by a breach on the part of the other party.
Q: Is verbal agreement legally binding in Thailand?A: While a verbal contract can be legally binding, it's much harder to prove its existence or terms if a dispute arises.
Q: Do foreign companies need to know Thai contract law?A: Yes, all contracts made in Thailand are subject to Thai law and any disputes will be resolved under Thai jurisdiction.
For additional information, consult with The Legal Development Program (LDP) under The Thailand Institute of Justice (TIJ), which is an influential organization conducting research and providing legal knowledge including contract law. The Law Society of Thailand also provides valuable resources and insights.
If you require assistance with a contract matter in Chiang Mai, the first step is usually to consult with a lawyer knowledgeable in Thai contract law. Preparing relevant documents and understanding the nature of your agreement is also crucial to provide accurate information for better legal advice. Make sure to address all your concerns and inquiries with your lawyer. Remember, seeking timely legal advice can prevent unnecessary complications and disputes.