Thailand is one of Asia’s most dynamic business destinations, attracting foreigners for work, investments, real estate, and commercial opportunities. However, many disputes arise simply because foreign individuals and companies are unfamiliar with how contract enforcement works under Thai law.
Whether you are dealing with a breach of contract, unpaid loan, landlord dispute, service agreement conflict, or unpaid invoices, it is essential to understand your rights and how to take action effectively.
This guide gives a clear and detailed explanation of the Thai legal system, what to prepare, how to enforce your contract, and how lawyers can assist you throughout the process.
Understanding Contract Law in Thailand
Under the Thai Civil and Commercial Code (CCC), a contract is valid when:
- There is a clear offer and acceptance
- Terms are definite (price, obligations, duration, etc.)
- Parties have legal capacity
- The contract is not against public order or good morals
Most importantly, Thailand recognizes:
- Written contracts
- Oral contracts
- Contracts made through electronic communication (LINE, WhatsApp, email)
However, for foreigners, a written bilingual contract is highly recommended because:
- It is easier to enforce at the Land Office or court
- It prevents misunderstanding
- It reduces arguments about interpretation
- It strengthens your position in court
- It avoids translation disputes
Common Types of Contract Disputes in Thailand
Foreigners frequently encounter disputes involving:
1. Lease and Rental Agreements
Issues include early termination, non-refund of deposit, landlord ignoring repairs, or landlord selling the property mid-lease.
2. Construction and Renovation Contracts
Common problems: unfinished work, delays, poor quality, overcharging, or contractors disappearing.
3. Loan Agreements & Investment Disputes
Very common. Even without a formal contract, bank transfer slips + chat messages are enough to support legal action.
4. Employment & Service Contracts
Disputes with consultants, agencies, designers, marketing firms, freelancers, or subcontractors about unpaid fees or deliverables.
5. Business Partnership Agreements
Breakdowns in joint ventures, revenue-sharing disputes, or partners failing to deliver their obligations.
6. Sale of Goods or Online Purchases
Especially for foreigners engaging in cross-border or online transactions in Thailand.
How to Enforce a Contract in Thailand
Below is a step-by-step explanation of how contract enforcement works in practice.
Step 1: Evidence Review & Case Analysis
Before taking action, your lawyer must review:
- Contract (Thai, English, or bilingual)
- Chats (LINE, WhatsApp, Messenger)
- Emails and calls
- Bank transfers
- Photos or videos
- Receipts or invoices
- Witness testimony
If your contract or communication is in English, it will need certified translation into Thai for litigation.
Your lawyer will assess:
- The strength of your claim
- Estimated damages
- Likelihood of success
- Time and cost
- Whether negotiation is still possible
Step 2: Formal Demand Letter (Required in Most Cases)
Thailand places importance on the formal written notice before filing a lawsuit.
A proper demand letter should include:
- Clear summary of the dispute
- The clause breached
- Amount owed
- Deadline for payment (usually 7–15 days)
- Warning of legal action
This letter is typically sent:
- By registered post
- By email
- By LINE/WhatsApp (as supporting evidence)
- Sometimes hand-delivered
If the debtor ignores the letter, it strengthens your legal position.
Step 3: Filing a Civil Lawsuit in Thai Court
If negotiation fails, your lawyer will file a lawsuit at:
- Civil Court (general cases)
- Commercial Court (business-related)
- Labour Court
- IP & International Trade Court
- Provincial Court
You do not need to appear in Thailand if you sign a Power of Attorney (POA), notarized in your home country.
Foreigners typically sign:
- POA
- Passport copy
- Notarized affidavit for court
- Document translations
Step 4: Court Procedure in Thailand
The process usually includes:
1. Mediation
Most civil courts require mediation first.
This often results in settlement because:
- Judges encourage compromise
- It saves time and money
- Thai culture prefers amicable resolution
2. Written Pleadings
Both parties submit:
- Plaintiff statement
- Defense
- Counterclaims
- Witness list
- Evidence list
3. Hearings
Hearings can include:
- Witness testimonies
- Cross-examination
- Expert reports
- Document verification
4. Judgment
Court will issue:
- Judgment
- Order for payment
- Deadlines for compliance
Most cases take 6–18 months, depending on complexity.
Step 5: Enforcement of Judgment
Winning the case is only half the battle.
Next, your lawyer will enforce the judgment through the Legal Execution Department (LED).
Enforcement tools include:
- Bank account seizure
- Salary or income garnishment
- Property seizure
- Asset investigation
- Compulsory auctions
Execution procedures can take 3–9 months depending on the situation.
Can Foreigners Sue in Thailand Without Being in the Country?
Yes.
Foreign plaintiffs can sue and enforce judgments entirely through a lawyer, using:
- Notarized POA
- Certified translations
- Passport copy
Personal presence is needed only if:
- You are a key witness
- The judge requests personal testimony
- Mediation requires your participation (rare)
What Remedies Can Foreigners Claim in Thai Courts?
You may be able to claim:
- Unpaid amount
- Contractual penalties
- Default interest (5%)
- Compensation for damages
- Loss of profits
- Legal fees (partially reimbursed)
- Court costs
For serious fraud or deception, a criminal complaint may also be available.
Practical Tips for Foreigners Doing Contracts in Thailand
Always insist on a bilingual contract
Thai courts rely heavily on Thai-language documents.
Avoid paying deposits without written confirmation
Especially with landlords, contractors, and online services.
Save all communication
Screenshots, chats, emails—they are admissible in Thai courts.
Use proper invoices and receipts
To avoid disputes about payments and obligations.
For business deals, run DBD searches
Confirm company registration, directors, and office location.
Consult a lawyer before signing
Most disputes could have been prevented with proper drafting.
Frequently Asked Questions (FAQ)
1. Can a foreigner enforce an English-only contract in Thailand?
Yes, but the contract must be translated into Thai for submission to the court. A bilingual contract is always better.
2. Is a LINE or WhatsApp conversation acceptable as evidence?
Yes. Chats, screenshots, voice messages, and emails are all admissible.
3. Do I need to be in Thailand during the court process?
No. With a notarized POA, your lawyer can act on your behalf.
4. Can foreigners sue Thai companies or landlords?
Yes. Foreigners have full rights to sue individuals or companies in Thailand.
5. How long does a civil lawsuit take in Thailand?
Approximately 6–18 months, depending on complexity.
6. What happens if the debtor refuses to pay after judgment?
Your lawyer will request enforcement:
- Bank account seizure
- Asset seizure
- Income garnishment
7. Can Thai courts enforce judgments from overseas?
Thailand does not automatically enforce foreign judgments, but they can be used as evidence when filing a new case in Thailand.
8. Can I claim interest on unpaid money?
Yes. Default interest is often 5% per year
9. Are verbal contracts enforceable in Thailand?
Yes, but harder to prove. Written contracts are strongly recommended.
10. Can foreigners sue for breach of contract related to property?
Yes. Lease disputes, renovation disputes, and deposit disputes are very common.
11. Can I sue if the business partner disappears?
Yes. As long as you have evidence of obligation and breach.
12. How much does it cost to enforce a contract in Thailand?
Costs vary by case but usually include:
- Demand letter fee
- Court filing fee (approx. 2% of claim)
- Lawyer’s professional fees
- Translation and notary costs
We provide clear quotations before proceeding.
13. What’s the interest rate under Thai law?
Statutory Rate (Default): If your contract does not specify an interest rate for a monetary debt or for default, the court will apply the new statutory default rate of 5% per annum. The figure of 7.5% is the old rate and no longer applies for defaults occurring after April 11, 2021.
Contractual Rate (Maximum): The parties are still free to agree on a higher rate in the contract, but the maximum cap for interest remains generally set at 15% per annum under the law (though some regulated entities like commercial banks have exceptions).
How Lex Bangkok Can Help
Our experienced lawyers assist foreigners with:
- Contract drafting, negotiation, and translation
- Demand letters & formal notices
- Civil lawsuits in Thai courts
- Enforcement of judgments
- Business and commercial disputes
- Lease, loan, and partnership disputes
- Notarization & certified translations
We specialize in bilingual (Thai–English) legal services, ensuring clear communication and strong courtroom representation.
Contact Us
Let Lex Bangkok be your trusted partner in enforcing your rights in Thailand.
Schedule a consultation with our lawyers today.
We offer:
• Phone or online consultations
• In-person meetings at our Bangkok office
• Ongoing legal support tailored to expats and international businesses