THAIFEX – Anuga Asia IMPACT Muang Thong Thani, Bangkok, Thailand, from 24-28 May 2022. Read more

The exhibition is organized by the Department of International Trade Promotion Ministry of Commerce, Thai Chamber of Commerce and Koelnmesse, aimed at promotion of the export of food and beverage products of Thailand. The exhibitors are provided with the opportunity to engage with a high-level business network from the industry, forming the Priority Buyer Club. What about governing law for international trade ?

Governing Law for the Legal Relationship

Even if under the Hague Convention on the Choice of Court (Concluded November 25, 1965), the parties of the International commercial transaction may agree to choose the governing law and court designate, for the purpose of deciding disputes which may arise between them.1

But, to date, Thailand has not yet become a signatory state to the Convention. The domestic law shall be applied to the jurisdiction. An agreement on the choice of court is void subject to the prohibition of law and contrary to public order. Moreover, the enforcement of foreign judgments are not enforceable in the Thai Legal system which gives the plaintiff the right to choose to submit a complaint to the court in which the defendant is domiciled or to the court where the cause of the case arises and enforcement of the awards according to such court’s judgments only.2  

Anyway, when dispute over international trade of good contract, filing the case in Thai jurisdiction is possible if one of the contract parties is Thailand-based or the contract is made in Thailand. In addition, chosen Thai Arbitration may be a better option when considered about governing law.

Advantages and Disadvantages to Chose Thailand Law

Basically, contract parties of international commercial transaction which one party is Thailand-based, the other parties can filling the case to the breaching party who is Thailand-based under Thai law, the Advantages of filling the case in Thailand are Lower costs both lawyer fees and court fees and effective enforcing the awards due to the defendant’s asset which is under Thailand court jurisdiction, the Disadvantages are Language and documentary when trial which shall be proceeded in Thai only, even the translations are applied to both verbal and documents.

However, the parties may by an agreement to choose the Thailand arbitration in stance of Thailand Court which allows the parties to cross the language and documentary, also the applicable law when trial but these agreements must be clearly described in written contract and signed by parties which may be a provision of international trade of goods contract. Read more about Thailand Arbitration

Conclusion

All lawsuits related to international trade of goods, exchange of goods or international financial instruments, international service, international transport, insurance and other related legal acts are under the Jurisdiction of the Central Intellectual Property and International Trade Court of Thailand in which the defendant is domiciled or the cause of the case arises. Optional is Thai Arbitration which may be more advantage for international commercial transaction between Thai contract parties and foreigner.

For further information about International trade dispute or litigation in Thailand, visit INTL trade page or litigation page, or just feel free to contact us at any time.

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  1. the Hague Convention on the Choice of Court (Concluded November 25, 1965), Article 1. 
  2. the Thailand Civil and Commercial Code, Section 150, the Thailand Civil and Commercial Procedure Code, Section 4