Q1. Is a contract in English valid in Thailand?
Yes. Thai law does not require contracts between private parties to be in Thai. However, if the contract is filed with an authority or produced in court, a Thai translation is required and the Thai version usually prevails in proceedings, so a bilingual draft with a stated governing language is safer.
Q2. Does a contract need to be notarised?
Most commercial contracts are valid on signature. Notarisation by a notarial services attorney becomes relevant when the document will be used abroad, when a party signs remotely, or when a counterparty or bank asks for identity verification.
Q3. Are electronic signatures recognised?
The Electronic Transactions Act recognises electronic signatures for most private contracts. Registry filings, land transactions and many bank formalities still require wet-ink originals.
Q4. What makes a non-disclosure agreement enforceable?
A defined scope of confidential information, a stated duration, permitted disclosures, a clear remedy, and a realistic dispute resolution clause. Overbroad perpetual clauses are frequently narrowed by courts.
Q5. Are non-compete clauses enforceable against employees?
They may be enforced if limited in time, geography and scope and if they protect a legitimate business interest. Thai courts can and do reduce clauses they consider oppressive.
Q6. What should a service agreement always contain?
Scope and deliverables, acceptance criteria, payment triggers, taxes and withholding, intellectual property ownership, liability caps, termination rights and the dispute clause. Missing withholding tax allocation is a common source of later argument.
Q7. Can penalty clauses be reduced?
Yes. Under the Civil and Commercial Code a court may reduce a stipulated penalty it considers disproportionately high, so unrealistic figures rarely help.
Q8. What is the general limitation period for contract claims?
Ten years is the default for ordinary contractual claims, with shorter periods for specific categories such as claims by traders for goods supplied, which is commonly two years. The applicable period should be checked case by case.
Q9. Is a power of attorney valid without a specific form?
A power of attorney should be specific about the acts authorised. Land and registry transactions use prescribed forms and often require a stamp duty and identification of witnesses.
Q10. How is stamp duty handled?
Certain instruments, including leases, loans and powers of attorney, attract stamp duty. An unstamped instrument can be inadmissible as evidence until duty and surcharge are paid.
Q11. Can a contract be terminated for convenience?
Only if the contract says so. Without an express clause, termination requires breach, mutual agreement or a statutory ground, and wrongful termination exposes the terminating party to damages.
Q12. What is the difference between damages and specific performance?
Damages compensate loss in money; specific performance compels the party to do what it promised. Thai courts can order performance, but damages remain the more common remedy in commercial disputes.