Contract Review in Thailand

When doing business in Thailand, it is essential to ensure that all contracts are valid, binding, and enforceable. To do this, companies need to undergo a thorough contract review process, which involves scrutinizing every detail of the agreement. Here are some key points to consider when conducting a contract review in Thailand.

Understanding the Law

To begin with, it is important to understand that Thai contract law is primarily based on civil law principles. This means that contracts are generally governed by the provisions of the Civil and Commercial Code, which sets out the rules for formation, interpretation, and termination of contracts.

In addition to the Code, other laws and regulations may also impact the validity of a contract, such as the Foreign Business Act, the Labor Protection Act, and the Consumer Protection Act. Companies need to be aware of these laws and ensure that their contracts comply with all relevant provisions.

Elements of a Valid Contract

In order for a contract to be considered valid in Thailand, it must contain certain essential elements. These include an offer, acceptance, consideration, and the intention to create legal relations. Furthermore, the terms of the contract must be clear and unambiguous, and the parties must have the capacity to enter into the agreement.

A contract review should verify that all these elements are present, and that the terms of the contract accurately reflect the intentions of the parties. If there are any doubts or ambiguities, it may be necessary to seek legal advice to clarify the matter.

Language and Translation

One of the challenges of conducting a contract review in Thailand is the issue of language. Thai is the official language of the country, and all contracts must be in Thai to be considered legally valid. However, many international businesses may prefer to use English or another language for their contracts.

If this is the case, it is important to ensure that the contract is properly translated into Thai by a qualified and certified translator. The translation should be accurate and faithful to the original, and any discrepancies or errors should be corrected before the contract is signed.

Contractual Disputes

Even with a thorough contract review process, disputes may still arise over the interpretation or enforcement of a contract. In these cases, the parties may need to resort to legal action to resolve the matter.

Thailand has a well-established legal system, with a range of courts and tribunals that can handle civil and commercial disputes. Companies should be aware of the different procedures and processes involved in these legal actions, and should seek legal advice to ensure that their rights and interests are protected.


In summary, a contract review is an essential part of doing business in Thailand. Companies need to ensure that their contracts are valid, binding, and enforceable, and comply with all relevant laws and regulations. By taking the time to review and verify their contracts, businesses can avoid costly disputes and protect their interests in the long run.

Leave a Reply

Your email address will not be published. Required fields are marked *