Breach of Contract in Thailand

Navigating contract disputes requires a thorough understanding of contractual terms, legal principles and negotiation strategies. It also involves a commitment to exploring resolution methods that are efficient, effective and culturally sensitive.

A breach of contract in Thailand can have serious consequences. A variety of remedies are available under Thai law, including damages, specific performance and rescission.


Contractual disputes can arise from a variety of reasons, and it is always best to have all contracts in writing. This provides clarity and serves as valuable evidence should a dispute occur.

The most common remedies for breach of contract are damages and specific performance. Damages are monetary awards that aim to compensate the non-breaching party for financial losses suffered as a direct result of the breach. Specific performance involves a court order requiring the breaching party to fulfil their contractual obligations as originally agreed.

In some instances, it may be possible to rescind a contract. However, this is only available where there has been a fundamental and substantial breach of contract.

Navigating a contract dispute in Thailand requires a thorough understanding of local legal practices, negotiation strategies, and cultural awareness. With the right guidance, it is possible to transform the discordant solo of a breach of contract into a harmonious resolution that preserves commercial relationships and sets the stage for future success in Thai business.

Specific Performance

Contracts are the cornerstone of commercial transactions in Thailand, as they are in most jurisdictions. When one or more parties fails to meet their legal obligations, it can have severe ramifications for all involved. Disputes can often be resolved informally, but if necessary, court action may become necessary.

The Thai Civil and Commercial Code outlines a number of remedies that can be invoked to address contract breaches, including damages and specific performance. Damages are monetary awards meant to compensate non-breaching parties for financial losses suffered as a direct result of the breach, while specific performance involves a court order compelling the breaching party to fulfill their contractual duties within a specified timeframe.

A material breach is a significant violation of a contract that fundamentally undermines its essential purpose. This type of breach often entitles the injured party to terminate the contract and seek compensation. A minor breach is a less serious violation that does not have as much of an impact on the overall agreement and, therefore, may not be grounds for terminating the contract.


Contracts are the cornerstone of business and legal transactions in Thailand, and like in many countries, breaching a contract can have serious financial and legal implications. The Thai Civil and Commercial Code provides a clear framework for contract formation, types of breaches, and available remedies.

Damages: This remedy involves monetary compensation aimed at compensating the aggrieved party for actual financial losses incurred as a result of the breach. It can include both direct and consequential damages.

Specific Performance: This legal remedy requires the breaching party to fulfill its contractual obligations as originally agreed upon. It may also include a period of time within which the breaching party must complete its obligation, and can even lead to termination of the contract.

Oftentimes, a breach of contract can result in litigation. However, our firm is frequently requested to handle disputes that can be resolved through more informal methods such as negotiation and arbitration. We can provide you with the guidance and representation you need to resolve your contractual dispute.

Dispute Resolution

The Thai Civil and Commercial Code outlines the legal framework for contract disputes. A contractual dispute exists when a party fails to fulfill their obligations as outlined in the contract. Whether written or oral, contracts are legally binding on all parties and are created by an offer, acceptance, consideration, and intention to create legal relations (Section 149, TCCC).

Contract law in Thailand promotes transparency and accountability between parties. Regardless of the type of contract, understanding your rights and remedies empowers you to navigate any dispute that may arise.

The court system in Thailand has established rules for litigation, including evidence presentation and timelines. Additionally, there are enforcement mechanisms available to ensure compliance with a court decision or order, such as asset seizure and wage garnishment. Additionally, alternative dispute resolution methods such as mediation and negotiation allow parties to resolve a contractual issue without resorting to the court system. Depending on the nature of your case, this method can be significantly faster than traditional litigation.

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