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