| A contract is an exchange of promises between two | | | | choice of forum clause that specifies which nation a |
| or more people for a particular purpose. It is a legally | | | | complaint may be filed and a legal case may be |
| enforceable agreement that generates a | | | | enforced in court. Notice of the terms must be given |
| commitment to do or not to do something. The | | | | at or before concluding the contract. The terms must |
| central part of most contracts is a set of shared | | | | be referred to or contained in a document that was |
| promises. The promises are made by the parties that | | | | projected to have contractual effect; and reasonable |
| describe the privileges and obligations of the parties. | | | | steps must be taken to bring the terms to |
| The term 'party' can mean an individual, company or | | | | concentration of the other party. |
| corporation. No matter what kind of contract you | | | | The TCCC states that the laws of that country will |
| take, having an understanding of contract law is a | | | | apply if the parties are of the same nationality. |
| central part to establish sound business agreements | | | | However, if the parties are not of the same |
| that will be lawfully enforceable in the event when a | | | | nationality, the law of the country where the |
| clash arises. | | | | contract has been made will apply. For instance |
| In Thailand, the contract law is controlled by the | | | | where a contract has been made between parties at |
| Thailand Civil & Commercial Code (TCCC) and other | | | | a distance, the country where the contract is |
| Thai legal authorities. The contract is a | | | | deemed to have been made is the country where |
| comprehensive description of the obligations and | | | | notice of the acceptance reaches the seller. If such a |
| duties and the time limit for performance of the | | | | place cannot be determined, the law of the country |
| parties. The law gives the parties comparatively | | | | where the contract is to be performed shall govern. |
| broad freedom to agree any terms. The general rule | | | | Agreements between foreigners and Thai nationals |
| of contract under the TCCC is that the contract is | | | | are enforceable in Thailand. Real estate, purchase and |
| binding and concluded where the offer is accepted | | | | sale of property, hotel and property management, |
| and the recognition is communicated from the | | | | guarantees, construction are the important contracts |
| offeree to the offeror. All contracts should be given | | | | that are entered into between foreigners and Thai |
| in the form of a written document signed by the | | | | partners. Shareholder agreements, employment, trust |
| two parties. One of the major risk areas is that the | | | | agreements, loan, joint ventures, franchising, licensing |
| laws especially restrict activities of foreigners, such as | | | | and distributorship are other types of contracts that |
| the Foreign Business Act and Land Act. | | | | are found to be very common. According to TCCC, if |
| As in any common law system, concluding a contract | | | | a contract of sale is subject to a time clause or to a |
| requires offer, acceptance, formality, consideration | | | | condition, the ownership of the property is not |
| and intention to create a legal relationship. The | | | | transferred until the condition is fulfilled, or the time |
| contract encompass terms that are expressly agreed | | | | has arrived. The completion time of the contract of |
| upon by the people as well as implied conditions that | | | | sale is referred to hereafter as the time of sale. The |
| were not particularly arranged but implied into the | | | | costs of a sale contract are paid by both parties |
| contract by act or court explanation. In general, | | | | equally. |
| implied terms may not be inconsistent with the | | | | If a disagreement over a contract arises and informal |
| express terms of a contract. At common law, courts | | | | attempts at resolution fail; the most common |
| would usually imply a term into a contract if it is | | | | method used to enforce contracts and resolve |
| necessary to provide effectiveness to the contract | | | | contract disputes is through the court system and |
| from a business point of view. | | | | lawsuits. Courts and formal lawsuits are not the only |
| Actually there are two different areas where the | | | | option for people and businesses involved in contract |
| place of the contract becomes important. The | | | | disputes. The parties can have a mediator to review |
| foremost is the selection of law clause. It describes | | | | a contract dispute, or may agree to binding |
| the law of which nation will apply. The second is the | | | | arbitration of a contract dispute. |