For foreigners entering into contracts with Thai nationals, there are many more considerations requiring scrutiny than if a contract is between two Thai nationals.
Foremost is that contracts can become void if they breach the Foreign Business Act. It is also important to note that a contract made between a native Thai and a foreigner whilst both are in Thailand, the law of the country where the contract was made will apply.
It is also imperative that you have an official translation so you fully understand all the minor details in the contract so it makes good sense to hire a competent legal adviser at the start of the process to ensure that if a dispute ever does arise you have already ensured the process of resolution within the agreement.
- Contract law in Thailand is controlled by the Thailand Civil & Commercial Code and other Thai legal Acts & Codes
- The contract is a comprehensive description of the obligations and duties and the time limit for performance of all parties.
- The law gives the parties comparatively broad freedom to agree any terms.
- The general rule of contract under the Thailand Civil & Commercial Code is that the contract is binding and concluded where the offer is accepted and the recognition is communicated from the offeree to the offeror.
- All contracts should be given in the form of a written document in the Thai language signed by the two parties. (An official translation can be attached).
