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 Thai Law (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.
Most attorneys will always try to settle matters like contract breach out of court. This does not mean that you should not contact a law firm when a breach of contract cases occur.
The steps that most attorneys will take depend on the type of contract that has been breached and the specific nature of disputes.
The first step will always be to request compliance from the parties that are in breach. This might involve the provision of contracted goods or services or paying out interest lost over a specified period. A demand letter is often useful in this regard. If the contracting party still fails to deliver a formal letter was evidently not enough, and further steps must be taken. Court action is usually the final step in the process, however, and an agreement often will include some provision for what needs to be done in case of disputes.
The Thai court can take a long time to address labor agreements, so a court complaint is often avoided if possible. However, when it does happen that contract disputes end up in a Thailand court, the court judgment on the matter is final.
Things like real estate agreements, loan agreements, supplier fails, purchaser fails, and infringements from foreign investors will sometimes see the inside of Thailand courts for various reasons. When all steps such as the demand letter and other informal methods, including arbitration and mediation, have failed to resolve a contractual dispute, then further legal action involving Thai courts is called for.
A demand letter, however, can sometimes be enough, and should provide methods for parties to come to an agreement within the interest of the law concerned and the party that did not fail to deliver on the agreement. Breach of contract cases is not all that rare, and even when disputes do not reach Thailand courts, it is still good to involve a law firm that can ensure that your interests are protected. For example, if your supplier fails to deliver without notice prior to the deadline you should immediately consult a law firm so that some action can be taken to protect your assets.
Attempts will always be made to avoid court action if at all possible, but if the law firm cannot avoid this kind of action then they should be well equipped to handle the case in Thailand courts. Juslaws & Consult is just a law firm!
Juslaws & Consult specializes in assisting clients facing problems, including Breach of Contract. Our team of professional and competent lawyers is fully equipped to handle such cases at the Thai Court. We have handled numerous cases related to Breach of Contract, and we can confidently attest that it will be just a walk in the park for us.
It is advised that if you are facing such a case you should consult immediately with a lawyer or professional to assist and advise you on the next step to take. We are always available and ready to assist.