Breach of Contract in Thailand

Contracts can be complicated and sometimes things go wrong. When that happens, legal action in Thailand might be required.

NDAs (Non-Disclosure Agreement) are legally binding contracts designed to protect sensitive information from disclosure. When it comes to NDAs in Thailand, the concept aligns with global standards, but there are some unique nuances.


There are several possible damages related to a breach of contract, including compensation to the non-breaching party, cancellation of the contract and returning the parties to their original positions and restitution for any losses incurred. Other damages include fines, rescission and legal action.

Breach of contract cases referred to Ratchada Law Firm can involve property leases, loan contracts and even employment agreements. Our English speaking business lawyers have years of experience navigating local and international commercial disputes with an incredible success rate.

NDAs are important tools for protecting confidential information and ensuring that any disclosure does not result in any damage or loss to the receiving party. They should clearly define what constitutes confidential information, outline obligations like not disclosing the information and using it solely for agreed purposes, and provide measures for safeguarding the confidential information. The NDA should also set out the consequences for the breach, including termination of the contract and reputational damage.

Specific Performance

Specific performance is a remedy that allows you to get what you contracted for when monetary damages won’t adequately compensate you. This type of clause is often found in contracts that involve the purchase or sale of something unique and can’t easily be replaced.

In order to use this legal remedy you must be able to prove that the underlying contract is valid, that you lived up to your end of the bargain, and that the defendant could have fulfilled theirs but did not. Unlike monetary damages, specific performance is considered equitable relief, and is therefore more difficult to obtain than standard monetary awards.

A common breach of contract issue in Thailand involves the failure of contractors to meet the agreed upon date for completion of construction. For example, in one case, a tour company lost millions of dollars due to the late delivery of a new bus that they had purchased from a local car dealership.


Rescission is a remedy that allows for the contract to be undone, returning the parties to their positions before they entered into the contract. This is different than a claim for damages, which gives the non-breaching party monetary compensation to make up for losses or injury caused by the breaching party.

Rescinding a contract requires specific circumstances to exist, and is generally only used when money damages are not enough to make up for the loss or damage suffered. It is an equitable remedy, which means that the court uses its discretion when deciding whether to grant rescission.

If you have a dispute concerning a contractual matter, it is important to contact an experienced lawyer in Thailand as soon as possible. This is to ensure that all the necessary information and evidence regarding the case is collected so that your legal representatives can take the appropriate steps in filing a lawsuit against the breaching party.

Legal Action

In the event of a breach of contract in Thailand, there are many legal remedies available. The most common is monetary damages to compensate the aggrieved party for losses incurred. Specific performance is another remedy that involves a court order requiring the breaching party to perform its obligations under the contract.

A party may also seek rescission of the contract or an injunction to prevent future breaches. Finally, the parties to a contract can choose to enforce the terms of any international conventions to which Thailand is a party.

NDAs in Thailand are generally enforceable, provided they do not contain any unfair or illegal provisions. However, a court could refuse to enforce a contract term that violates public policy or good morals. It is important that an NDA contains clear exclusions of information that cannot be protected by the agreement and specifies the duration of the agreement. Additionally, it is recommended that an NDA be written in both Thai and English to avoid any misunderstandings or disputes over interpretation.

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