A breach of contract occurs when one party fails to fulfill their obligations as outlined in a legally binding agreement. In Thailand, breaches of contract are taken seriously, and legal mechanisms are in place to address such situations. This article explores the intricacies of breach of contract in Thailand, including key legal principles, available remedies, and the implications for parties involved.

Key Legal Principles:

1. Contractual Obligations: A breach of contract arises when one party fails to perform as agreed upon in the contract. This could involve non-performance, delay, inadequate performance, or any violation of the terms and conditions specified in the agreement.
2. Material vs. Minor Breach: Breaches can be categorized as material (substantial) or minor (insignificant). Material breaches are those that significantly affect the purpose of the contract, while minor breaches do not fundamentally undermine the contract's purpose.
3. Doctrine of Good Faith: The Thai Civil and Commercial Code emphasizes the principle of good faith in contractual relationships. Parties are expected to act honestly and fairly in their dealings and adhere to the spirit of the contract.

Available Remedies:

When a breach of contract occurs, the non-breaching party has several remedies available under Thai law:

1. Specific Performance: This remedy compels the breaching party to fulfill their contractual obligations as originally agreed. It is typically used when monetary compensation is inadequate to remedy the breach.
2. Compensatory Damages: The non-breaching party may claim compensatory damages to recover financial losses caused by the breach. Damages are calculated based on the actual loss suffered by the aggrieved party.
3. Liquidated Damages: If the contract includes a clause specifying a predetermined amount to be paid in case of breach, it is known as a liquidated damages clause. The courts generally enforce such clauses unless they are deemed unreasonable or excessive.
4. Rescission: Rescission nullifies the contract, restoring both parties to their original positions before entering into the agreement. This is applicable in cases of serious breaches.
5. Termination: In some cases, the non-breaching party may choose to terminate the contract due to the breach. Termination relieves both parties of their contractual obligations.

Implications and Legal Process:

1. Notice: Prior to taking legal action, the aggrieved party is often required to provide notice to the breaching party about the breach and the intended action.
2. Negotiation and Mediation: Parties are encouraged to attempt negotiation or mediation to resolve the dispute amicably before pursuing legal action.
3. Litigation: If negotiation and mediation fail, the aggrieved party may file a lawsuit to seek remedies through the court system.
4. Burden of Proof: The burden of proof rests on the non-breaching party to demonstrate that a breach occurred and that damages were suffered as a result.

Contractual Limitations:

Certain contractual limitations may affect the enforceability of breach of contract claims:

1. Time Limitations: Legal action for breach of contract must be initiated within the timeframe specified by the statute of limitations.
2. Force Majeure: Contracts often include force majeure clauses, which excuse performance in case of unforeseen events beyond the parties' control.

Commercial and Legal Considerations:

Breach of contract cases often have commercial and legal implications:

1. Business Relations: Contractual breaches can strain business relationships, tarnish reputations, and lead to lost opportunities.
2. Commercial Impact: Breaches can disrupt supply chains, delay projects, and result in financial losses for both parties.
3. Litigation Costs: Legal proceedings can be costly and time-consuming. It's important for parties to evaluate the potential benefits and costs of pursuing legal action.

Conclusion:

Breach of contract cases are significant in Thailand's legal landscape, holding parties accountable for upholding their contractual obligations. Understanding the legal principles, remedies, and implications surrounding breach of contract is crucial for businesses and individuals alike. Whether seeking remedies through negotiation, mediation, or litigation, parties should approach breach of contract disputes with a clear understanding of their rights and responsibilities under Thai law.

Child legitimation is a legal process that holds substantial importance in Thailand, reflecting cultural values, legal considerations, and the rights of children. This article delves into the intricacies of child legitimation in Thailand, exploring the legal framework, cultural context, and the far-reaching implications for families and society.

Legal Framework:

Child legitimation in Thailand is regulated by the Thai Civil and Commercial Code. It is a process by which a child born to unmarried parents gains legal recognition as the legitimate child of both parents. The legal steps involved in the legitimation process include:

1. Voluntary Declaration: Both parents must jointly file a declaration at the district office (Amphur) to legitimize their child. This typically requires providing personal information, the child's birth certificate, and the consent of both parents.
2. Marriage: Legitimation often occurs when parents marry after the birth of the child. Once married, the child's status changes to that of a legitimate child.
3. Court Petition: In cases where one parent is absent or refuses to participate in the legitimation process, the other parent can petition the court to legitimize the child.

Cultural Significance:

Thailand's cultural values heavily influence the perception of legitimacy and the social standing of children:

1. Family Honor: In Thai society, family honor and respect for tradition play a significant role. Legitimating a child can help preserve the family's honor and the child's social standing.
2. Cohesive Families: Thai culture places high value on cohesive families. Legitimation strengthens family bonds and ensures that children receive equal rights within the family structure.
3. Community Acceptance: Legitimation is often sought to gain acceptance within the community, as it carries a certain level of social approval.

Implications and Benefits:

1. Legal Rights: Legitimated children are entitled to the same legal rights as children born to married parents, including inheritance rights and the ability to use both parents' surnames.
2. Citizenship: Legitimation can impact a child's citizenship status, particularly if one parent is a foreign national.
3. Education and Healthcare: Legitimated children have equal access to education and healthcare benefits, without discrimination based on their birth status.

Child's Welfare:

While legitimation holds cultural and legal significance, the welfare of the child remains paramount. Ensuring that children have access to their legal rights and the support they need is crucial.

International Implications:

Legitimation becomes particularly relevant in cases involving international marriages or relationships, where the laws of both countries may interact. It's important to consider the legal implications in both the child's birth country and the parents' country of origin.

Challenges:

The legitimation process in Thailand can encounter challenges, including:

1. Uncooperative Parent: If one parent refuses to cooperate, the process can become more complex, potentially requiring court intervention.
2. Documentation: Ensuring that all necessary documentation is accurate and complete is crucial for a smooth legitimation process.

Conclusion:

Child legitimation in Thailand represents a harmonious blend of legal formalities and cultural values. It serves to bridge the gap between traditional expectations and modern legal rights, ensuring that children receive the recognition and benefits they deserve. By navigating the legal process of legitimation, parents can affirm their commitment to their children's well-being and pave the way for a more equitable and inclusive future.

Child support is a fundamental aspect of ensuring the well-being and upbringing of children in the context of parental separation or divorce. In Thailand, a blend of legal provisions and cultural considerations shapes the landscape of child support. This article explores the nuances of child support in Thailand, encompassing its legal framework, cultural influences, and the paramount importance of a child's welfare.

Legal Framework:

Child support matters in Thailand are governed by the Thai Civil and Commercial Code. The primary principle underlying child support is the obligation of both parents to financially contribute to their child's upbringing and well-being. The Code outlines the legal responsibilities associated with child support:

1. Basic Necessities: Parents are obligated to provide financial support to cover the child's basic necessities, including food, clothing, shelter, education, and healthcare.
2. Proportional Contribution: The financial contribution is typically determined based on the parents' income and ability to pay. The court takes into account the child's needs and the parents' financial circumstances.
3. Child's Best Interests: Similar to other aspects of family law, the best interests of the child are paramount in child support matters. The court's decisions aim to safeguard the child's well-being and maintain a suitable standard of living.

Cultural Dynamics:

Cultural values in Thailand deeply influence child support considerations, often emphasizing the importance of family and support networks:

1. Extended Family: Thai families are closely knit, often involving a network of extended family members. In cases of financial strain, extended family may provide additional support to ensure the child's needs are met.
2. Respect for Elders: Thai culture places high value on respect for elders. This cultural aspect might influence decisions regarding financial contributions from grandparents or other family members.
3. Harmony and Obligation: Maintaining harmony and fulfilling obligations are cultural ideals in Thai society. These values can impact how parents approach their financial responsibilities toward their children.

Legal Proceedings:

When parents cannot agree on child support arrangements, legal proceedings may be initiated. Mediation is often the first step, aimed at reaching a mutually acceptable agreement that considers the child's needs.

If mediation fails, the court may intervene to determine child support. The court assesses both parents' financial situations, the child's needs, and the overall circumstances. The resulting child support order aims to maintain the child's standard of living and ensure their well-being.

Modification and Enforcement:

Child support orders can be modified if there are significant changes in circumstances, such as changes in income or the child's needs. The court will consider these factors before making adjustments to the support arrangement.

Enforcement mechanisms exist to ensure that child support orders are complied with. Failure to pay child support can lead to legal consequences, including fines or even imprisonment in extreme cases.

Cultural and Financial Balance:

Balancing cultural considerations with financial responsibilities can sometimes be challenging. The court aims to strike a balance between traditional values and modern financial obligations to ensure that children receive the support they need.

Conclusion:

Child support in Thailand is a multidimensional concept that merges legal mandates with cultural values to prioritize the well-being of children. The legal framework establishes the guidelines for financial contributions, while cultural dynamics add layers of context to this responsibility. Ultimately, the paramount goal is to provide children with the financial support they need for their upbringing, education, and overall development. Whether through amicable agreements or legal interventions, child support reflects Thailand's commitment to safeguarding the future of its youngest citizens.

Child custody holds profound significance in any society, but in Thailand, it is intricately intertwined with cultural values and legal considerations. This article explores the nuances of child custody in Thailand, encompassing its legal foundations, cultural influences, and the prioritization of children's well-being.

Legal Framework:

Child custody matters in Thailand are governed by the Thai Civil and Commercial Code. The overarching principle guiding custody decisions is the best interests of the child. The Code outlines different types of custody arrangements:

1. Joint Custody: The Thai legal system recognizes joint custody, allowing both parents to share the responsibilities of raising the child. This arrangement aims to ensure that both parents maintain a presence in the child's life.
2. Sole Custody: In cases where one parent is deemed unfit or incapable of caring for the child, the court may grant sole custody to the other parent.
3. Visitation Rights: Even in cases of sole custody, the non-custodial parent is generally granted visitation rights to maintain a relationship with the child.

Cultural Dynamics:

Cultural factors play a significant role in child custody matters in Thailand, reflecting the nation's values and social structure.

1. Respect for Elders: Thai culture places great importance on respecting elders, and this is extended to the familial context. Grandparents often play an active role in raising grandchildren, and their influence may be considered in custody decisions.
2. Extended Family: Thai families are often extended, with strong connections to aunts, uncles, and cousins. Courts may take into account the child's relationships with extended family members when determining custody arrangements.
3. Avoiding Conflict: Thai society values harmony and avoiding confrontation. Parents are encouraged to resolve custody disputes amicably, often with the involvement of family members as mediators.

Legal Proceedings:

In the event of a dispute over child custody, legal proceedings may be initiated. Mediation is often the first step, with the aim of reaching an agreement that considers the best interests of the child.

If mediation fails, court intervention may be necessary. The court will assess various factors, including the child's age, physical and emotional needs, and the ability of each parent to provide a stable environment. The court may also consider the child's preference, especially if they are of sufficient age and maturity.

Parental Rights:

Both parents in Thailand have inherent parental rights and responsibilities toward their children. This means that even if parents are divorced or separated, they continue to have a duty to provide for the child's upbringing and welfare.

Balancing Tradition and Modernity:

Thailand's evolving society presents a unique challenge of balancing traditional values with modern realities. As Thai families become more diverse in structure, the court's decisions aim to strike a balance between maintaining cultural norms and safeguarding the child's well-being.

International Implications:

Child custody cases involving international elements, such as when one parent is a foreign national, can add layers of complexity. The Hague Convention on the Civil Aspects of International Child Abduction may come into play if a child is wrongfully removed from their habitual residence.

Conclusion:

Child custody in Thailand encompasses a rich interplay of legal, cultural, and familial dynamics. While the legal framework provides guidelines, cultural values and traditions also shape how custody matters are approached. Ultimately, the best interests of the child remain paramount, as parents, legal professionals, and cultural sensitivities collaborate to ensure a nurturing and supportive environment for children facing the challenges of familial change.

Divorce is a complex and emotionally charged process that varies significantly from one country to another. In Thailand, a country known for its rich cultural heritage and unique legal system, divorce follows its own set of rules and practices. This article delves into the legal aspects and cultural considerations surrounding divorce in Thailand.

Legal Framework:

In Thailand, divorce falls under the jurisdiction of the Thai Civil and Commercial Code. There are two main types of divorce: uncontested divorce and contested divorce.

1. Uncontested Divorce: If both parties agree to end their marriage and reach a settlement on property, financial matters, and custody arrangements (if applicable), an uncontested divorce can be filed. This is a relatively straightforward process and is often quicker and less emotionally taxing.
2. Contested Divorce: In cases where one party does not agree to the divorce or there are disagreements on important issues such as property division and child custody, a contested divorce is pursued. This can be a lengthy and complex legal battle.

Grounds for Divorce:

Thai law recognizes several grounds for divorce, including adultery, desertion, imprisonment, severe misconduct, and mutual consent. The most commonly cited ground is mutual consent, where both parties agree to dissolve the marriage. However, proving grounds such as adultery or desertion can be challenging and require substantial evidence.

Property Division:

Thailand follows a system of separate property, where assets acquired before marriage or through inheritance remain the property of the individual spouse. Assets acquired during the marriage are generally considered joint property and are subject to division during divorce. Property division can be a contentious issue, especially in cases of significant assets or complex financial situations.

Custody and Child Support:

Child custody matters are treated with utmost importance. The Thai legal system focuses on the best interests of the child. In cases of uncontested divorce, parents can determine custody arrangements themselves. In contested cases, the court will make decisions based on factors such as the child's age, relationship with each parent, and overall well-being.

Cultural Considerations:

Cultural factors play a significant role in divorce proceedings in Thailand.

1. Mediation and Harmony: Thai culture values harmony and avoids conflict whenever possible. Mediation and negotiation are encouraged to resolve issues amicably, especially when children are involved.
2. Social Stigma: Despite changing attitudes, divorce can still carry a social stigma in Thai society, particularly in more traditional communities. This can lead to pressure on couples to maintain their marriages for appearance's sake.
3. Extended Family Dynamics: Thai families tend to be close-knit, with extended family playing an important role. Divorce can impact not only the immediate couple but also extended family relationships.

Conclusion:

Divorce in Thailand is influenced by a mix of legal regulations and cultural norms. Navigating the process requires a clear understanding of both aspects. While the legal framework provides guidance on divorce procedures, the cultural context adds layers of complexity that must be delicately considered. Whether facing an uncontested or contested divorce, individuals must balance their legal rights with cultural sensitivities to achieve the best possible outcome for all parties involved.

The US-Thai Treaty of Amity allows U.S. citizens to hold a majority share for foreign companies in Thailand and receive national treatment, which means they can be exempted from the restrictions under the Alien Business Law of 1972. GPS Legal can assist in the process of setting up a company under this treaty.

Benefits

The treaty allows US citizens to manage and own companies in Thailand without needing majority Thai shareholders. This is a great benefit because it means that US companies can avoid many of the restrictions placed on other foreign companies under the Alien Business Act of Thailand.

Amity treaty companies can also hire American employees without needing work permits (though a company must have at least two authorized American directors). It seems likely that the government will “grandfather in” businesses engaged under the Treaty of Amity in order to maintain this arrangement.

To take advantage of these benefits, the company must file specific paperwork with the Commercial Services Office and then have the documents verified by the Department of Business Development. This process can be time consuming, and it is wise to get the help of Plizz to ensure the process goes smoothly. Plizz can also discuss the drawbacks of registering under the Treaty of Amity with you in more detail, so that you can decide if this is the right option for your business.

Requirements

An American company wishing to operate under the Treaty must first verify its US nationality. The commercial service of the American Embassy in Bangkok will issue a letter to that effect, which must then be presented to the Ministry of Commerce to get a business operation certificate. This process typically takes less than a month.

This applies to both new and existing companies. A notarized copy of the company’s certificate of incorporation and an affidavit stating the name, citizenship, address and nationality of all directors must be submitted.

It is important to note that while a company registered under the US-Thai Amity Treaty can do almost any type of business in Thailand, it may not own land. It also must hire four Thai employees, pay their Social Security and comply with work permit regulations. In addition, the company must have a minimum of 2 million Baht in registered capital. GPS Legal can go over these requirements in more detail with clients.

Taxes

Despite the advantages, there are some limitations associated with companies incorporated under the US-Thai Treaty of Amity. Companies with a majority of American shareholders, or that are wholly owned by American citizens, receive national treatment and are exempt from most restrictions on foreign investment as set forth in the Foreign Business Act. Documents must be certified at the Commercial Services Office at the US Embassy in Bangkok to obtain this protection.

These companies cannot engage in inland communications or inland transportation; fiduciary functions; banking involving depository functions; or domestic trade in indigenous agricultural products. Furthermore, they cannot own land.

If a company wants to own land, it must consider other options or register under the Foreign Business Act. In addition, these companies have to comply with other Thai regulations. Plizz can help ensure that the necessary paperwork is prepared and filed correctly to avoid any delays in the process. The entire process can take 4-6 weeks to complete, but a single mistake can cause it to be delayed for months.

Licensing

In addition to allowing majority shareholding, the US-Thai Treaty of Amity also grants national treatment for American companies in the country. This means that American firms can operate in Thailand on the same basis as Thai investors without worrying about many of the restrictions put into place by Thailand to limit foreign investment.

If you decide to start a business under the US-Thai Treaty ofAmity, you must obtain a certificate of business operation from the Ministry of Commerce in order to register your company as a foreign enterprise in Thailand. This process can take about a month. You will need to submit notarized copies of your passport and your parent company’s passport as well as information regarding your company such as its name, address, authorized capital, number of shares and par value, the total number of shareholders, their nationalities, and the amount of shares held by each shareholder.

In order for a US-Thai Treaty of Amity company to sponsor a work permit, the company must have at least THB 2 million in registered capital and hire four Thai employees who are paid their salaries from this registered capital. Plizz’s legal team can discuss the benefits and drawbacks of registering under the US-Thai Treaty in more detail with you.

Registering a company under the Thailand Board of Investment provides tax and non-tax incentives. These include exemptions from corporate taxes for up to eight years and reduced import duties on raw materials and research costs. The resulting reductions can save you significant amounts of money.

However, BOI-promoted companies must regularly report to the Department of Business Development and comply with the BOI’s inspections. In addition, they must show proof of funds and secure visas and work permits for their foreign employees and directors.

Business line

The Board of Investment is an organization that aims to promote direct foreign investments in Thailand. It devises investment policies and provides incentives to attract investors. The government also protects the business interests of BOI-promoted companies. This is done by ensuring that they follow the terms and conditions of the certification.

In addition, a company that is BOI-promoted can enjoy tax privileges. These include exemptions or reductions of import duties on raw materials and equipment. It can also benefit from a streamlined e-expert process for visas and work permits for foreign employees.

BOI-promoted companies must also observe the Thai laws in terms of accounting and reporting. They must report on their social security contributions, withholding taxes and value-added taxes, and conduct yearly auditing. Additionally, they must notify the Office of BOI within 10 working days when a change in operations occurs. They must also obtain permission from the BOI if they wish to mortgage or sell or transfer machinery that was imported at an exempted or reduced duty rate.

Ownership structure

The Office of the Board of Investment is a government organization that promotes direct investment in Thailand by devising investment policies and offering tax-based and non-tax incentives. In order to be a BOI-promoted company, a business must meet certain requirements and adhere to Thai regulations in relation to accounting and reporting. This includes meeting reporting requirements for the Social Security Fund, Value Added Tax, and yearly auditing.

The BOI-promoted company is also required to follow strict rules on exports and imports. It must notify the BOI in case it wishes to mortgage, sell, or transfer machinery that has been imported at an exempted or reduced duty rate, and must not use it for non-approved purposes.

BOI-promoted companies can enjoy a wide range of privileges, including corporate income tax exemptions, tariff reductions or exemptions on machinery imports, and free tariff treatment for raw materials and inputs. They can also bring in foreign skilled workers and experts, and their visas and work permits are processed within a day through the BOI’s One-Stop Service Centre for Visas & Work Permits.

Management structure

The management structure of a company is one of the most important aspects in determining its success. It should be well-organized and effective to ensure the smooth running of the business. It should also be able to handle changes in the market.

The Thailand Board of Investment (BOI) is a government agency that promotes investments in certain sectors deemed to be beneficial for the economy. It offers a range of tax and non-tax incentives to foreign and domestic investors.

BOI-promoted companies have many privileges, including corporate income tax exemption, tariff reductions or exemptions on imported machinery, and permission to own land. In addition, they are exempted from the juristic person’s tax on dividends and interest.

The Juslaws & Consult Thai law firm has a dedicated team of lawyers who offer a full range of support for clients opening a BOI-promoted company in Thailand. They can provide advice on how to obtain the necessary documents and help you prepare your application.

Taxes

The Thai government provides tax and non-tax incentives for companies that invest in BOI promoted activities. These incentives help develop regional economic hubs and foster local skills. They also support Thailand's goal of becoming a leading trading and investment hub in the region.

The BOI also promotes Special Economic Zones in ten border provinces, where foreign businesses can receive a host of tax and non-tax benefits. These include streamlined visa applications and waivers on restrictions on foreign land ownership. The BOI also has a 15-member "superboard" that oversees reform of the country's 56 SOEs.

In addition to the BOI's investment incentives, the U.S. Embassy in Bangkok offers a certification letter that allows US citizens and businesses to claim national treatment under the U.S.-Thailand Treaty of Amity and Economic Relations. These investors can enjoy a variety of business advantages, including exemption from corporate income tax for some years and reduced or waived import duties on machinery, raw materials, and supplies.

Setting up a Representative Office is one of the fastest and easiest ways for a foreign corporation to establish itself on the Thai market. Our company registration experts will assist you in preparing the required documents and guide you through the legal process.

The Representative Office operates service business on behalf of its Head office or an affiliated company, but cannot generate revenue or earn income. It can only report on movements in the Thai market and facilitate trade.

Legal Requirements

Foreign companies that are not able to meet the requirements for a foreign business license in Thailand but still want to do marketing or ensure quality control on products sourced from the country can establish a representative office. The office can conduct non-revenue earning activities but must report to the head office on movements of goods.

The office also must remit a specific amount of money back to the head office each year. In addition, the manager of the office must prepare an annual report on activities for the head office.

In comparison to a foreign business branch, the process for setting up a rep office is significantly shorter. Furthermore, the office is not required to follow the work permit ratio of four Thai employees for every foreign employee. The offices are also not subject to corporate income tax because they do not earn revenue. However, they must pay interest on remittances from the head office.

Expatriation

In the case of foreign companies that wish to explore the Thai market, but are not yet ready to make a business investment and risk their capital, the establishment of a representative office in Thailand can be a good solution. This type of entity does not require a Foreign Business License (FBL), and allows for the conducting of legally permitted activities without the requirement to earn income in Thailand.

Representative offices manage service businesses in Thailand on behalf of the head office or affiliated companies in other countries. The representative office cannot perform revenue-generating activities, accept purchasing orders or make offers for selling, nor negotiate with any juristic person established in Thailand. It is also not subject to corporate income tax, except for deposit interest from remitted funds from the head office.

The set up process for a Representative Office in Thailand is relatively fast and easy, and typically takes about a week. Tila legal can assist with preparing the required documents, which must be notarized and certified by the local Thai Embassy or Consulate, and should not be more than six months old at the time of submission.

Taxes

Foreign companies that want to explore the market or conduct marketing can use a Representative Office. This type of office is not required to pay any taxes, assuming it does not engage in income generating activities.

This office can report on business movements in the country and source goods for the head office. It cannot, however, make sales or engage in any type of business negotiations with third parties.

The Representative Office must deposit a minimum amount of capital into Thailand to operate, which can be used for operating expenses. There is also a government fee and annual report.

Tila legal can help you prepare the necessary documents for the Representative Office, including a letter of appointment signed by the director of the foreign entity and a local manager. We will then verify that all the documents are correct before they are submitted. This process can take as little as a week. We can even arrange for a lawyer to handle the process for you.

Registration

A representative office in Thailand allows a foreign company to report on business movements in the country to its head office. It can also perform inspections and quality control of goods that the headquarters has sourced from Thailand. This is an attractive option for companies that want to enter the Thai market without investing in a full-blown local business.

In order to register a rep office, the foreign head office must submit a Letter of Appointment. A certified photocopy of the passport of the manager must be included, along with his or her personal ID and household registration. In addition, the manager must sign a declaration that he or she satisfies all qualifications and does not have a prohibited characteristic according to Section 16 of the Foreign Business Act. Once all documents are complete, the representative office can begin operating. It is not subject to corporate income tax, but it must deposit the interest on any funds remitted from its head office.