The Consumer Protection Act B.E. 2522 (1979) is a cornerstone of Thai law designed to safeguard consumer rights and promote fairness in commerce. Enacted in response to the increasing complexity of Thailand’s market economy, the Act establishes legal protections against unfair trade practices, dangerous goods, deceptive advertising, and exploitative contracts. It provides mechanisms for enforcement, dispute resolution, and administrative oversight. Given Thailand’s dual focus on economic growth and consumer welfare, understanding the Consumer Protection Act is essential for businesses, legal professionals, and consumers alike.
This article provides an in-depth analysis of the Consumer Protection Act (CPA), its legal framework, key provisions, enforcement mechanisms, and practical issues in its application.
The CPA establishes a statutory basis for consumer protection, operating alongside other key laws, such as:
The Act applies to transactions between business operators (defined broadly to include manufacturers, importers, distributors, service providers) and consumers.
The CPA aims to:
✅ Protect consumers against unfair trade practices.
✅ Ensure accurate and sufficient information about goods and services.
✅ Prevent harm arising from defective or dangerous products.
✅ Provide access to redress mechanisms.
Under the CPA, Thai consumers are granted:
1️⃣ The right to receive accurate information regarding goods and services.
2️⃣ The right to safety from hazardous goods or services.
3️⃣ The right to fair contracts, free of abusive or unconscionable terms.
4️⃣ The right to redress for damages caused by goods or services.
The CPA establishes several bodies for enforcement:
Failure to comply may result in administrative penalties and criminal prosecution.
Violations of the CPA may lead to:
This procedural law complements the CPA by:
⚠ Consumer awareness
⚠ Enforcement delays
⚠ Cross-border commerce
Businesses must:
✅ Ensure advertisements and labels are truthful and not misleading.
✅ Use contract templates approved or compliant with CPB guidelines where required.
✅ Ensure goods and services meet applicable safety standards.
✅ Cooperate with CPB/OCPB investigations and comply with orders.
Failure to do so exposes the business to legal action, administrative penalties, and reputational harm.
The CPA interacts with:
The Consumer Protection Act of Thailand establishes a robust legal framework to protect consumers and promote fair commercial practices. While enforcement faces practical challenges, the Act provides substantial powers to regulatory bodies and important rights to consumers. Businesses operating in Thailand must ensure compliance not only to avoid penalties but also to maintain consumer trust in an increasingly sophisticated market.
Thailand has a legal system that ensures checks and balances within the judiciary. For example, a complaint can bypass the police and prosecutor and be brought directly to court where an investigative hearing will determine whether a case has merit.
Courts encourage parties to settle their dispute through a process of mediation. They also schedule witness hearings and judgment hearings.
Litigation is the process of resolving legal disputes through the courts. This includes bringing claims for damages, seeking court-ordered specific performance, and enforcing contracts. Litigation also involves resolving issues related to intellectual property, bankruptcy, and a broad range of business-related disputes.
In Thailand, the Civil and Commercial Code (TCCC) provides the primary legal framework governing civil litigation matters. Under the TCCC, prospective litigants must take steps to explore alternative methods of Thailand dispute resolution before filing a lawsuit (unless otherwise agreed).
The party making a claim bears the burden of proof for their case. If a claimant loses the case, they may be required to pay the defendant’s costs and expenses. In class action proceedings, the winning party is typically awarded a proportion of their legal fees.
A claimant may bring a lawsuit before the Court of Justice or one of the more specialised courts. In the latter case, it will be necessary to demonstrate that a claim falls within the court’s jurisdiction in accordance with the principle of actor sequitur forum rei. In practice, this means that the dispute must have arisen in the jurisdiction of the court in question or that the party is domiciled there. The court will exercise its discretion to determine how much weight a foreign judgment or proceeding should be given in the proceedings.
The Court of Justice is the default court of first instance for civil cases in Thailand unless the subject matter of the dispute falls within the scope of jurisdiction of a more specialised court, such as the Central Labour Court, the Central Tax Court, the Central Bankruptcy Court, the Intelligence Property and International Trade Court or the Central Administrative Court. In general, court proceedings in civil cases are based on the Constitution of Thailand, thousands of organic laws (decrees, governmental notifications and regulations) and the provisions of the Civil Procedure Code.
Courts in Thailand are attempting to improve the efficiency of their courts through various technological and digital initiatives. For example, hearings and trials can be conducted via videoconference for parties who have the court's permission and are not physically located in the same place.
A claimant may file their case in a Thai court regardless of whether the defendant is a foreign citizen or not. Service of process on a foreign defendant can be made either through an international courier or through diplomatic channels, depending on the specifications in any applicable bilateral agreement between Thailand and the country in question.
A judgment rendered by a Thai court can be enforced through attaining a writ of execution issued by the court, which enables the seizure of assets and claims to be carried out through a legal enforcement officer. However, creditors cannot enforce a judgment rendered by a Thai court against sovereign entities and state agencies, including state-owned enterprises, except in very limited circumstances.
In Thailand, civil cases are heard by a tribunal comprising one or more professional judges. In many courts this consists of three judges. A judge hears all aspects of the case, deciding whether or not to admit evidence and make decisions on points of law and fact. The judge must be impartial and independent of any vested interest in the case. This is in line with the country's constitution and laws, which set out strict requirements on judicial independence and impartiality, with penalties for breaches of those provisions.
Civil court proceedings are conducted in the language of the case in question. Generally, witnesses are called to affirm their statements in person and are subjected to cross-examination by the opposing party. During this process, it is common for lawyers to prepare their witnesses.
No comprehensive discovery scheme exists in Thai courts, but there are various provisions that allow for evidence to be obtained via subpoenas. There is also a requirement that each party file with the court, prior to hearing day, a list containing descriptions of witnesses and documents to be adduced, as well as things, places and experts to be inspected and questioned.
Litigation is not a quick or cheap process in Thailand, and court costs are usually payable by the losing party. However, the courts can determine that the winning party should be responsible for all or part of the costs. In addition, the court may encourage the parties to undertake a settlement at any stage in the proceedings.
The courts in Thailand operate under an adversarial system where the parties present their evidence and rebut each other’s evidence during trial hearings. The court is actively involved in case management and makes procedural decisions throughout the trial. The court may question witnesses directly on direct examination, cross-examination and redirect examination. The court also has discretion to award attorney’s fees, although in practice the amount awarded will be minimal and is not binding on the losing party.
There is no mandatory discovery process in the Thai legal system, but the parties can petition for court subpoenas to obtain witness and evidence from third parties. The court conducts a trial hearing to consider and discuss the written submissions made by the parties, with oral arguments being heard where appropriate. The court will then make a judgment on the merits of the case.
If either party disagrees with the court’s judgment, they can appeal to the Court of Appeal or the Supreme Court for a full review of the decision. This ensures a check and balance on the judiciary.
Foreign defendants can be sued in Thai proceedings provided that the claimant’s cause of action arose in or was caused in Thailand and the court has jurisdiction under the rules of international law. Service of process on a foreign defendant is generally made via diplomatic channels, subject to the specifications of any applicable bilateral treaty between Thailand and the jurisdiction of the defendant.
Disagreements within businesses can jeopardise the progress of operations. It is therefore essential to have a good understanding of the different types and possible solutions of commercial disputes in Thailand.
Chandler MHM has a dedicated Thailand dispute resolution team which handles a broad range of disputes for clients from a diverse array of sectors. The team is knowledgeable in judicial proceedings, arbitration and conciliation.
Commercial disputes are a common part of doing business in Thailand. They can arise from a variety of issues that affect trade and business operations, including breaches of contract terms, misunderstandings about the interpretation of contract clauses, and differences of opinion between parties.
The first step in resolving a commercial dispute is usually negotiation. This involves direct communication between the disputing parties, with the assistance of a neutral third party, such as a professional mediator. This is a cost-effective and fast option that can preserve business relationships. In addition, mediation is a legally binding process that can provide a sense of finality.
When commercial disputes cannot be settled through negotiation or mediation, the next step is often arbitration. Arbitration is a process similar to trial, but conducted outside of the court system. It allows parties to select an arbitrator or panel of arbitrators who have expertise relevant to the dispute, which can guarantee a higher level of knowledge than would be available in a courtroom. Arbitral awards are also generally enforceable both in Thailand and internationally.
While litigation is a last resort, it can be necessary when other methods fail to yield results. For businesses in Thailand, it is important to have an understanding of the country’s commercial dispute resolution mechanisms and how they work. With the right legal counsel, international companies can ensure their best interests are safeguarded and that their legal rights are upheld throughout any dispute proceedings in Thailand.
In Thailand, disputes between companies and administrative authorities can arise from the exercise of an administrative power or from the carrying out of an administrative act. These cases are handled by the administrative court.
A dispute with an administrative authority can often involve complex issues of law, such as the application of foreign laws in a case concerning the exercise of a discretionary authority by a public agency. In such cases, it is necessary to seek advice from a specialist in the relevant field of law.
Litigation in administrative disputes is common in Thailand. The Thai legal system provides a fair, accessible and balanced vehicle for the resolution of these disputes. The courts also maintain a strong system of checks and balances to ensure that decisions made by the judiciary are based on facts and the law. In addition, the courts have the power to investigate judges who may be suspected of dishonest conduct.
In resolving these kinds of disputes, the courts generally require the prevailing party to pay costs. However, the court can decide that neither party should be required to bear such costs or that both parties will share the burden equally. Alternatively, a court may award damages to the party that has succeeded in its claim. In addition, the court can order a defendant to remove a name from a house register, revoke their citizenship or return a passport.
In Thailand, the court system is one of the most important sources for dispute resolution. Court procedures typically begin with the filing of a lawsuit, followed by witness hearings, and finally a trial date. This process can take anywhere from 8-12 months, depending on the complexity of the case. After a judgment is rendered, appeals and enforcement can last up to several years.
During court proceedings, parties are encouraged to participate in mediation or settlement discussions and can use experts for expert determination. Alternative Dispute Resolution methods, such as conciliation and arbitration, are also common in Thailand and are governed by the CPC and the Arbitration Act B.E. 2545 (2002).
The success rate for dispute resolution via mediation varies throughout the world, but is about 70 – 85% on average. Thailand has taken steps to promote the efficiency of its courts by allowing witnesses who are outside the courtroom or abroad to testify through video conferences (e-Hearings).
The judicial system in Thailand is highly regulated and provides checks and balances, both internally and externally. Judges are required to follow a code of ethics that includes guidelines on maintaining impartiality and independence in their adjudication, as well as disciplinary provisions for violations. In addition, a party can challenge a decision or judgment by filing an appeal with the Court of Appeal or Supreme Court.
Arbitration is an alternative dispute resolution method that is increasingly recognised by businesses for its speed, cost-effectiveness and flexibility. It is typically incorporated into commercial contracts and the disputes are decided by an arbitration tribunal made up of one or more arbitrators. Disputes that are more complex and have higher values are often heard by three arbitrators. The tribunal must decide on the rules of procedure, evidence and the way that the proceedings should be conducted.
Arbitral proceedings are governed by the Arbitration Act of 2002, and in most cases parties will stipulate that any disputes will be resolved by out-of-court arbitration rather than in-court litigation. Nevertheless, the courts have historically been reluctant to encourage arbitration, and there is a lack of awareness regarding the benefits of including arbitration clauses in contracts.
A significant development in the law of arbitration was the introduction, in January 2017, of a new set of rules administered by TAI, known as the Office of Judiciary Regulation on Arbitration Rules of TAI 2017 ("TAI Rules"), which amended many procedural omissions from previous law. These changes include the power to grant interim remedies and an expansion of tribunal discretion, which was previously limited by law.
A recent judgment of the Supreme Court highlighted that it is a general rule that disputes may be decided by an arbitration tribunal, even where there is a contractual provision for resolving disputes through court proceedings (Supreme Court Judgment No 3427/2562 (2022)). This is a positive step towards encouraging more use of arbitration in Thailand, and highlights the importance of ensuring that the parties’ agreed method of costs allocation is applied.
Navigating trade disputes in Thailand requires an understanding of both Thai business customs and international legal standards. Maintaining thorough documentation, including clear dispute resolution clauses in contracts, can reduce conflict and facilitate a favorable resolution.
Arbitration is a faster and less expensive route to a resolution than litigation. Moreover, an arbitration award is binding and enforceable both in Thailand and internationally.
Commercial disputes are a reality for most businesses and the legal system provides mechanisms to resolve them. However, the complexities of Thailand’s legal framework and cultural context can complicate the process of navigating commercial Thailand dispute resolution. Having an attorney experienced in Thai commercial law can help ensure that your business interests are protected throughout the process.
In addition, Thai courts have several provisions requiring judicial impartiality and independence during the trial of a case. For example, a judge may be challenged if they have a vested interest in the outcome of the trial or if they have a close relationship with any parties involved in the case.
The court process begins when a plaintiff files a complaint. Depending on the type of dispute, courts may require parties to participate in mediation before hearings are held to determine the issues. Witness hearings are then scheduled and, after the evidence is presented, a judgment hearing date is set.
While Thai courts have traditionally been conservative in their approach to arbitration, they are now generally open to the procedure and recognise and enforce foreign awards. In addition, the court system is improving efficiency by implementing online platforms for filing pleadings and submitting documents to court.
The dispute resolution process in Thailand involves a wide variety of alternatives to litigation, and the expertise and experience of law firms like PDLegal are essential assets for businesses seeking favourable outcomes that align with their business objectives. While arbitration remains a common tool for resolving disputes in the country, challenges remain that need to be addressed in order to improve efficiency and ensure the enforceable enforcement of arbitral awards.
First, the chairperson of the tribunal calls the hearing to order and invites each party and witness into the room. Each side may then present a statement of their case to the tribunal. The tribunal will then examine witnesses, who can be fact or expert witnesses.
Unlike some jurisdictions, where parties must agree on the composition of an arbitral tribunal, under the 2017 Rules, both disputing parties can choose a one or three-arbitrator panel. In addition, if the parties are not able to reach an agreement on an arbitrator, both will be given a list of potential arbitrators and then have fifteen days to remove the names they do not prefer.
In Thailand, class action lawsuits are relatively new. These lawsuits require that a lawyer or legal association with the capability, strength and knowledge to represent a class of persons initiates a litigation to protect their interests in the courts. It is not clear whether Thai private attorneys have the knowledge and experience to manage class action cases.
In most cases, once a complaint is filed with the court, the case will be scheduled for hearings. These hearings include identifying issues in dispute based on written submissions and scheduling trial or witness hearing dates. In complex civil cases, the court may also consider a petition for interim relief and schedule an emergency hearing to examine certain matters.
During the trial proceedings, both parties can ask witnesses to testify and present evidence to support their arguments. After examining the evidence, the court will decide on its verdict and issue the judgment. Generally, the losing party will be required to pay the winning party’s costs of litigation including attorney’s fees. However, in practice, the amount of attorney’s fees awarded is minimal and does not cover actual costs incurred.
Thailand has ratified the New York Convention, and arbitral awards issued in other countries that are parties to it are enforceable in Thailand. However, the courts have discretion in reviewing an award during the enforcement stage. Typically, they review the merits of the case to determine whether there are grounds to challenge the award.
Successful parties can recover interest and legal costs without significant restrictions. However, courts generally take a conservative stance on cost recovery to reflect amounts more fitting to the local context.
In January 2017, a much-awaited set of arbitration rules came into effect in Thailand. The new rules aim to improve the efficiency and consistency of arbitration administered by the TAI.
The TAI’s rules also include provisions on the independence and impartiality of arbitrators. These require an arbitrator to disclose any circumstances that might lead to justifiable doubts about their impartiality or independence, and to promptly disclose those to all parties. These measures will help to ensure that the TAI’s decisions are consistent with international standards. The TAI has also been active in fostering co-operative relationships and entering into Memorandum of Understandings with international arbitration institutions.
Unlike arbitration, where disputing parties choose a neutral arbitrator who hears the dispute and renders a binding judgment, mediation involves the assistance of an unbiased mediator to help the parties reach an acceptable solution. As a result, it is normally quicker and cheaper than a full-blown trial.
In Thailand, court-annexed mediation – conducted while the case is still pending in court – has been increasingly used to settle disputes and reduce the backlog of judicial cases. It is also becoming popular in the context of resolving smaller claims, as it can often be more cost effective than litigating such claims in a traditional lawsuit.
In addition, conciliation is another alternative dispute resolution method available to the public and private sectors in Thailand. Similar to mediation, conciliation involves the selection of an unbiased conciliator who helps the disputing parties to find a mutually-acceptable compromise agreement that is legally binding. Like mediation, conciliation proceedings are usually kept confidential and cannot be disclosed to third parties or used in any court proceeding. In some cases, the courts require that plaintiffs and defendants attend mandatory conciliation before the first hearing date in labour disputes and general civil cases.
Labor disputes in Thailand are influenced by a range of factors. These include legal awareness, power imbalances, and cultural factors.
Understanding Thailand’s labor laws can help employers cultivate a symbiotic work environment that thrives on productivity and harmony. Regular consultation with expert lawyers can also ensure that company work regulations adhere to the law.
Disputes over misclassification of employees are a serious matter in Thailand, as the country takes worker classification seriously and penalties can be steep for those who violate rules. For example, if an employer misclassifies workers as contractors instead of full-time employees, the company may be required to pay back taxes and social security contributions that have been withheld from these workers.
Additionally, if an employee is misclassified, they could miss out on certain benefits such as vacation leave and severance pay. Employees also have the right to file a claim with the Labor Court, which is responsible for hearing cases involving labour laws and Thailand dispute resolution. However, there are a few obstacles that can prevent workers from pursuing their claims, including lack of legal awareness and fear of retaliation.
The Labour Protection Act is the primary law governing employment in Thailand. It oversees a variety of issues, including minimum wage, work hours, overtime pay and fund contributions. The law also governs employee termination procedures and protects workers’ rights to form unions and file complaints. In addition to this, specific industries have additional regulations tailored to their unique needs. While these regulations are vital for creating a positive workplace environment, they can be complex to understand and follow. In addition, there is a general cultural emphasis on maintaining harmony and avoiding confrontation, which can hamper open discussions and impede the speed of dispute resolution.
The Ministry of Labor is the apex body responsible for framing and overseeing labor-related policies and laws in Thailand. Additionally, the ministry has several affiliated departments that deal with specialized areas of labor law. These departments are often the first point of contact for specific queries and provide comprehensive online resources. Lawyers specializing in labor law can also offer advice and represent parties during arbitration and court cases.
Under Thai labor laws, employers are allowed to terminate employment for certain reasons. However, it is important to note that there are a number of procedures that must be followed when terminating employees. For example, employers are required to provide a written notice of termination at least one cycle of wage payment in advance. Moreover, any employer who terminates employment for non-statutory reasons or without cause will be liable to pay compensation to the employee.
Employees who believe that their rights have been violated during the termination process may file a wrongful dismissal claim with the Labour Court. To do so, they will need to submit evidence that one or more of their legal rights have been breached. If the court finds that the termination was unfair, it will order the employer to reinstate the employee or award compensation. The amount of compensation awarded is determined by the court, taking into consideration the employee’s age, work period, hardship from the dismissal, and the reason for the termination.
Employers must pay their employees a minimum wage, which the government periodically adjusts according to various economic indicators, inflation rates, and living costs. In addition to this, employers must make mandatory deductions from employees’ salaries for social security and other government contributions. Understanding Thailand’s labor laws is a crucial step in ensuring your company is aligned with the nation’s labor standards and preserving worker rights.
While Thai law allows verbal employment contracts, drafting written ones is advisable to ensure clarity and prevent potential disputes. These contracts must detail the working conditions, wages, and other important aspects of an employee’s job. Additionally, they must include work commencement and ending times in order to comply with Thailand’s labour law.
Moreover, Thai law stipulates that companies must provide their employees with a comprehensive benefit package. This includes paid public holidays, medical care, and unemployment benefits. In addition, employees can access compensation for injuries and diseases incurred at the workplace. Lastly, long-term employees can look forward to pensions upon retirement.
In addition to these statutory benefits, employers must also allow their workers to join trade unions, which offer support and advice in times of crisis. Further, the Ministry of Labor can mediate disputes and help resolve conflicts between employees and their employer. This can be a cost-effective way to avoid legal action and protect your reputation.
In Thailand, all employees are entitled to receive a pension upon their retirement. The system is based on social security contributions which are made by the employee and the employer. The government also has a worker’s compensation fund to cover losses of income due to injury or death.
Individuals who are not employed can also get a social security benefit by paying an annual contribution. The system has its flaws however, including insufficient coverage of the elderly and high administrative costs. The government is currently implementing reforms, including increasing the size of the benefits and introducing compulsion for employers to establish a Provident Fund scheme.
Employees can form a labor union with the approval of 10 promoters and exercise their rights to bargain for working conditions. However, the government prohibits unions with supervisory functions and those with a power to promote or sanction members.
Chandler Mori Hamada advises foreign companies with operations in Thailand and their local subsidiaries on a wide range of labor law issues, including employment contracts, termination arrangements, salary negotiations, work permit applications, and resolving labor disputes. We also assist with human resource issues arising from business restructurings, rehabilitations, and employment transfers. We have represented several major Thai entities and foreign corporations in conciliation, mediation and arbitration procedures on issues related to labor disputes.
Navigating contract law in Thailand requires a thorough understanding of the legal framework, types of breaches, and available remedies. Ensuring that contracts are properly drafted and reviewed can help prevent disputes; however, even the most diligent parties may encounter a breach dispute.
When contract breaches do occur, swift and informed action can transform a discordant melody into a harmonious resolution. This article explores Breach of Contract in Thailand, including key elements to consider.
In Thailand, as in most legal jurisdictions, a contract is an agreement between two or more parties that creates legal obligations. A breach of contract can occur when one party fails to fulfil their contractual obligations. When this occurs, the non-breaching party may be entitled to a remedy from the court.
In cases of contract breaches, the courts usually award damages to compensate the non-breaching party for their losses. There are different types of damages, which include compensatory, consequential, and punitive. The courts also have the power to order specific performance, a remedy that involves a court order forcing the breaching party to fulfil their contractual duties.
Moreover, the courts may void contracts that are based on fraud or misrepresentation. Such a voiding of the contract requires proof that there was misrepresentation or fraud involved in the contract formation process. This is typically a difficult argument for the non-breaching party to win.
Individuals and businesses should seek legal advice to understand the Thai legal framework, types of breaches, and available remedies before entering into any contractual arrangements in Thailand. It is also advisable to explore options for Thailand dispute resolution, such as negotiation, mediation, and arbitration, before resorting to litigation.
Contracts are the backbone of commercial relationships and legal transactions, providing a framework for parties to define their rights and obligations. But when one party fails to uphold its commitments, a breach of contract occurs, raising serious legal implications. A comprehensive understanding of the legal context, types of breaches, and available remedies can help businesses minimize risk and navigate breach disputes in Thailand.
In Thailand, the legal framework for addressing contract breaches is outlined in the country’s Civil and Commercial Code. The core principle is pacta sunt servanda, or “agreements must be kept.” A breach of contract can lead to several different consequences, depending on the severity and nature of the violation. The law provides two primary remedies—damages and specific performance—to compensate the non-breaching party for losses caused by a breach. Damages can be in the form of compensatory damages, which aim to place the non-breaching party in the same position they would have been if the breach had not occurred, or stipulated damages, which are predetermined amounts specified in a contract.
In some cases, rescission is an option, allowing the non-breaching party to void the contract due to fraud, misrepresentation, or other valid legal grounds. Many contracts include clauses that provide for mediation and arbitration as alternative dispute resolution methods. But if these approaches fail to yield an acceptable result, litigation in Thai courts is an option.
Injunctions are a powerful legal tool that can prevent irreparable harm during a contract dispute in Thailand. Injunctions can be a temporary or permanent order requiring the other party to take a certain action (e.g. pay outstanding rent) or refrain from doing something (e.g. disposing of assets).
In a breach of contract case, the plaintiff will file a civil lawsuit against the defendant to recover compensation and/or a court order requiring the defendant to fulfil their contractual obligations. Civil litigation involves a formal process of presenting evidence and arguments to a judge or jury. The court then renders a decision based on Thai law and the evidence presented.
Damages involve monetary compensation to reimburse the injured party for the losses they have suffered due to the breach of contract. This compensation consists of general, consequential, and stipulated or liquidated damages.
Stipulated damages are a pre-determined amount established upon the entry into the contract, also known as a penalty in Thailand. This method of compensating the injured party avoids lengthy litigation and allows for a quick settlement of the dispute. However, the courts may adjust or reduce these sums if they believe the amount is unreasonable.
Injunctive relief is a remedy that can prevent irreparable harm in contract cases by preserving the status quo until a case is resolved. However, this is a complex process that requires the assistance of experienced legal counsel. The lawyer for the plaintiff is responsible for proving that there has been a breach of contract and that injunctive relief is necessary to protect their interests. The lawyer for the defendant is responsible for arguing against injunctive relief and showing that the claim does not meet the legal requirements for this type of relief.
Thailand’s economy thrives on contracts that bind parties to fulfill specific obligations. However, unforeseen circumstances or deliberate actions can jeopardize those agreements and lead to contract breaches. In such cases, swift and informed action and legal guidance can transform a discordant melody into a harmonious resolution. Understanding the legal framework, types of breach, and available remedies is essential for individuals and businesses seeking to protect their interests and preserve business relationships. Incorporating clear and precise contracts, conducting regular legal reviews, and seeking legal counsel can help mitigate risks and effectively address breaches when they arise.
A key element of a valid contract in Thai law is consideration, which refers to something of value exchanged for the performance of a contractual obligation. In many cases, consideration can be in the form of money, services, or goods. Furthermore, in order for a contract to be enforceable it must be legal and not violate Thai laws or public policy. A force majeure clause, which excuses parties from performing their obligations due to unforeseen events, can also be an effective tool for preventing breach of contract.
Remedies for breach of contract in Thailand include damages and specific performance. Damages involve monetary compensation intended to restore the aggrieved party to their position had the breach not occurred. Specific performance, on the other hand, compels the breaching party to fulfill their contractual duties in a way that is consistent with the terms of the original agreement.