Breach of Contract in Thailand

If a contractual dispute is not settled through informal methods such as a demand letter or arbitration then legal action involving Thailand courts may be required. This can include a claim for damages.

The laws of contract in Thailand are based on express and implied terms which are in line with European jurisprudence. Contractors should seek to have their contracts drafted so as to be clear on their precise intentions in the event of a dispute.


A breach of contract can cause a variety of problems for your business, including loss of income and damage to your reputation. It’s important to understand what remedies are available and how they might be enforced.

A court may award damages to compensate a non-breaching party for losses or injury caused by the breaching party. The amount awarded will depend on the type of breach and the severity of the harm suffered.

Generally, a breach of contract is considered a civil offence in Thailand. However, if the breach results in serious and material injury or damage, it can be treated as criminal breach of contract.

An NDA is an essential tool for businesses seeking to protect confidential information. This includes customer lists and intellectual property. It’s important to include clear definitions of what is considered confidential, as well as the obligations of the receiving party (e.g., not disclosing confidential information and only using it for the agreed purpose). You should also specify the duration of the NDA and any consequences of a breach.

Specific Performance

Specific performance is a legal remedy that binds the parties to the exact terms they agreed upon in their contract. It is a fairly rare remedy, but it can be employed where the breaching party’s failure to fulfil contractual obligations renders monetary compensation insufficient to compensate the injured party. It is most commonly employed in real estate contracts, where the property being sold is unique and cannot be recreated.

Similarly, Non-Disclosure Agreements (NDA) are common in the workplace and can be enforceable in Thailand provided they don’t violate public policy or good morals. The enforceability of NDAs, however, depends on the language used and how the agreement was structured.

Generally, courts in Thailand interpret contract terms according to the common law and good commercial practice rather than strict literal interpretations. For this reason, it is important to consult an experienced lawyer if you are experiencing a contract dispute in Thailand.


A non-disclosure agreement is an essential contract to protect sensitive information like customer lists and intellectual property from being shared without consent. While Thailand doesn’t have explicit legislation regarding NDAs, courts will generally respect their terms if they are fair and reasonable.

If a party can demonstrate that a breach of contract resulted in significant damage, they may have the right to rescind the contract. The rescinded contract must be returned to the original condition it was in before it was breached, and if that’s not possible the rescinded party must pay damages for any losses suffered as a consequence of the breach.

Specific performance is another legal remedy that involves a court order requiring the breaching party to fulfill their obligations under the contract. This type of remedy can be effective in cases where monetary damages would not adequately compensate the injured party.


A breach of contract is a major legal problem, and it can cause significant financial and reputational damage. It is therefore essential to have a well-drafted agreement that holds up under Thai law. The Civil and Commercial Code provides the legal framework for enforcing contracts, including NDAs. Among other things, the NDA should clearly define confidential information and set forth the obligations of the receiving party (e.g. not disclosing the confidential information to others, using it only for agreed purposes, and protecting the confidentiality with appropriate security measures).

NDAs are often used in a variety of situations, such as when a company’s relationship with an employee or contractor ends or during mergers and acquisitions. Having an NDA that is enforceable in Thailand will provide peace of mind to businesses and protect their interests in the country. Our business attorneys can help you draft an NDA that meets all the requirements under Thai law.

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