Thai Contract Definitions A to Z

In Thailand, whether an agreement is called a rental, tenancy, lease, or leasehold, it is generally governed by the Thai Civil and Commercial Code under the chapter “Rent of Property”. In practical terms, a “rent of property” contract exists where the owner (the lessor) grants another person (the lessee/tenant) the right to use a property for a limited period, and the lessee agrees to pay rent. This is the core legal definition used for property lease agreements in Thailand.

ในประเทศไทย ไม่ว่าสัญญาจะเรียกว่า การเช่า, เช่าทรัพย์, สัญญาเช่า หรือ สิทธิการเช่า (Leasehold) โดยหลักแล้วจะอยู่ภายใต้บังคับของ ประมวลกฎหมายแพ่งและพาณิชย์ ในหมวด “เช่าทรัพย์” โดยสาระสำคัญ “สัญญาเช่าทรัพย์” คือกรณีที่เจ้าของทรัพย์ (ผู้ให้เช่า) ยินยอมให้บุคคลอื่น (ผู้เช่า) มีสิทธิใช้ทรัพย์สินได้ใน ระยะเวลาที่กำหนด และผู้เช่ายินยอมชำระ ค่าเช่า ซึ่งเป็นนิยามหลักที่ใช้ในการตีความสัญญาเช่าอสังหาริมทรัพย์ในประเทศไทย

A limited company incorporated under Thai law that owns real estate property on behalf of foreigners. The company must have a majority Thai shareholding of Thai nominee shareholders and the foreigner will hold control and management in such company.

Under Thai law property given by a man to his fiancée as evidence that the marriage shall take place. An engagement (betrothal) is not valid without such property given (section 1437).

A legal entity that is recognized by law as the subject of rights and duties other than a natural person (human being). In Thailand a juristic person can come into existence only by virtue of the civil and commercial code or other laws (section 65 civil and commercial code).

Referring to the real right under section 1402 civil and commercial code of Thailand giving a person the legal right to dwell in a house owned by another peron without paying rent.

As a legal term (in for example use and fruits as in usufruct) it refers to natural fruits such as natural production, offspring obtained from a thing and legal fruit such as interest (rent) obtained periodically by the owner from another person for the use of the thing.

The involuntary loss of money (as a penalty) without compensation as a result of a breach of contract.

Standard legal language (French) referring to an extraordinary event or circumstance beyond control of parties. The risks beyond the reasonable control of a party such as war and natural disasters (act of god) that could not be evaded through the exercise of due care and which is not a product or result of the negligence or malfeasance. In the Thailand Civil and Commercial Code it is described as 'any event the happening or pernicious result of which could not be prevented even though a person against whom it happened or threatened to happen were to take such appropriate care as might be expected from him in his situation and in such condition' (section 8).

Term in contract law, refraining from doing something that one has a legal right to do, giving of further time for repayment of an obligation or agreement (not to enforce a claim at its due date).

The official statement (Foreign Exchange Transaction (reporting) form) between a licensed financial institution (Thai bank) and the Bank of Thailand required for reporting any overseas remittance and exchange of foreign currencies of more than 50.000 USD (or equivalent in other currencies) into Thai baht in Thailand.

The area of law that deals with family relationships, rights, duties (particularly marriage, adoption, divorce, custody, maintenance), or more general, laws dealing with matters of impact on family relationships.

Money or other goods transferred to a neutral third party (Thailand requires this to be a licensed (financial) institution under the Thailand Business Escrow Act) and held by this party on behalf of contract parties pending fulfilment of some condition of a contract.

French language for 'in his/her mother's womb' or 'in his/her mother's belly'. Standard legal language and refers to the unborn child (fetus in utero) which is accepted to be a minor, provided it is subsequently born alive. Found for example in section 15 Thailand Civil and Commercial Code second paragraph: 'the unborn child (in his mother's womb) is capable of rights provided that it is thereafter born alive.'

การตรวจสอบสถานะ (Due Diligence) คือกระบวนการตรวจสอบข้อมูลและข้อเท็จจริง ของทรัพย์สิน บุคคล หรือนิติบุคคล ด้วยความรอบคอบและระมัดระวังในระดับที่เหมาะสม ก่อนการลงทุนหรือการเข้าทำสัญญากับอีกฝ่ายหนึ่ง

Due diligence is the process of carrying out a careful and prudent investigation of a property, person, or business before making an investment or entering into a contract with another party.