The ‘Contract of Sale’ in Thailand law1 only relates to the transfer to another person the ownership of property. It differs from the ‘Contract of Sale of Goods’ to other countries which can be related to a wide variety of transactions, buying something tangible in a shop or on the internet including paying for a service such as in the UK.2 This article gives you basic understanding about it in Thailand law.

Definition

Contract of sale is a contract whereby a seller transfers to the buyer ‘the ownership of the property’, and the buyer agrees to pay to the seller a price for it. The property includes things both tangible in general and intangible things that have value but do not exist physically. The note is the promise of sale does not lead to the formation of an enforceable contract. The addition notes is the Seller doesn’t need to be the owner of the property at the moment of the contract occurs, the obligation of the seller is to transfer the ownership to the property to the buyer by the agreed date.3

Contract Formation

As same as the other contract, the contract of same occurs when an offer is accepted. However, the questions between when the contract occurs and is the contract of sale legally enforceable or not, is the different questions of law. All contracts under Thailand law will be legally enforceable when it complies with the conditions of validity of the contract.

Compulsory Forms

The forms of Contract of Sale in Thailand classified into 3 categories, oral contract, written contract and written contract together with registration of the sale;

Oral Contract

The oral contract applies to the Contract of Sale, or the Pre-Contract of Sale, or Premise of Sale of the sale of movable property where the agreed price is under twenty-thousand baht,

Evidence Signed by the Party Liable, Deposit or Part of Payment

These categories apply the Contract of Sale, or the Pre-Contract of Sale, or Premise of the Sale of movable property where the agreed price is twenty-thousand baht or more.

Written Contract and Registration of the Sale

This category applies to contracts of sale of immovable property, ship of five Tons and over, floating house and the breach of burden.

The notes of the compulsory forms are below;

  1. The written contract means the document with both parties signature, it don’t required to sign at the same time and at the moment the contract occurs. It may signed whenever before submit the case to a court, the evidence signed by party liable is the same.4
  2. The electronic signature applies to the contract of sale. Therefore, the written contract or the evidence signed by the party liable may be made through electronic device such as a smartphone.5

Terms and Conditions

The parties are free to agree in all terms and conditions. All terms and the condition of the contract of sale are legally enforceable as long as they are not prohibited by law or impossible to perform or contrary to public order or good morals. May be good to see some examples for Land and House or Condominium Sale and Purchase contract. Also basic understanding about contract remedies in Thai law.

Conclusion

The contract of sale under Thailand law limited to the sale of property, the sale of services or somethings else are not included. Also the contract of sale is subject to the condition of validity and other law in relevance. If you are in need of a contract lawyer, or further information about contract and business law of Thailand, just feel free to contact us.

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  1. Thailand Civil and Commercial Code (CCC), Section 137, 138, 150, 453, 454, 456
  2. The UK, Sale of Goods Act 1979
  3. Thailand Supreme Court Judgment No. 2521/2559, 2856/2559
  4. Thailand Supreme Court Judgment No. 1881/2540 
  5. Electronic Transaction Act B.E. 2544, Section 4, 8 and 9