Breach of Contract, as the title suggests, is an act where a party to an agreement fails to perform any term of a written or oral contract without a legitimate legal reason, or if such party fails to accomplish their duties and responsibilities as stipulated in the contract, then the other party may file a civil lawsuit against the breaching party.
Agreements such as labor and employment agreements, sale and purchase agreements, real estate agreements, loan agreements, leases, etc., are covered under Thai Law, giving the damaged party the right to file a civil lawsuit against the breaching party.
One of the most common types of civil lawsuits in Thailand is for court-ordered performance and/or damages resulting from a breach of contract. Although the Thai Civil and Commercial Code allows several grounds for filing a legal action against the breaching party most of the time, the lawyers will try to attempt to recover the debts or damages through informal methods, or if arbitration or mediation is stipulated on the contract, then the parties will attempt to resolve such dispute through an Arbitration Dispute Resolution process. However, if such methods don't work, then filing a case at the Thai Court will be necessary.
The Thai Court provides methods to seize and sell or liquidate the assets of the breaching party to enforce a judgment in order to cover the damages or debt. Although civil lawsuits take quite some time to conclude, in order to recover damages from such a breach of contract in Thailand, you have to make sure that your appointed lawyer will be able to assist you 100% with your case at the Thai court.
Resolving contract breaches often begins outside the courtroom. This approach, however, does not diminish the importance of consulting a law firm when such issues arise. The actions taken by attorneys largely depend on the contract type and the dispute's specifics.Initially, attorneys typically request the breaching party to fulfill their contractual obligations, whether that involves delivering goods or services, or compensating for lost interest over a certain period. A demand letter can be a pivotal first step in these situations.
If compliance is not achieved following this formal notice, it underscores the need for further legal measures. Although litigation is generally considered a last resort, many contracts include clauses detailing dispute resolution procedures.
Given the lengthy process associated with labor agreement disputes in Thai courts, legal complaints are often a path of last resort. Nonetheless, when contract disputes do proceed to court in Thailand, the court’s decision is definitive.
Various disputes, such as those involving real estate, loans, supplier or purchaser failures, and issues with foreign investors, may ultimately require judicial intervention. When initial attempts like demand letters, arbitration, and mediation fail to resolve a dispute, court proceedings might become necessary.
Sometimes, a demand letter alone can suffice, outlining ways for the involved parties to reach a settlement that respects legal standards and honors the agreement's integrity. Breach of contract cases are relatively common, and even if a dispute does not escalate to court, the involvement of a law firm is crucial to safeguard your interests. For instance, if a supplier defaults on delivery without prior notification, it’s essential to engage a law firm promptly to protect your assets.
While the goal is to avoid courtroom battles whenever possible, a competent law firm will be prepared to advocate for your interests in Thai courts if necessary. Juslaws & Consult stands ready to support you in these legal endeavors.
Juslaws & Consult is well-versed in aiding clients with a variety of challenges, notably in cases of Breach of Contract. Our team comprises skilled and experienced lawyers adept at navigating the complexities of the Thai legal system. With a track record of successfully managing numerous Breach of Contract cases, we are well-prepared to handle such issues with confidence and efficiency.
If you find yourself embroiled in a Breach of Contract situation, it is crucial to seek immediate legal guidance. Our experts are on hand to provide you with the advice and support you need to move forward. We are always ready and willing to assist.
