Thai Law Database Online

                                 Loan Agreement

Have you ever borrowed some money from someone, and vice versa? Many years ago, one of my friends borrowed me some money, I gave him the money without hesitating. I did not even ask him when he would repay me. Until now, he has not repaid me yet. He may forget! When I study law, I just realized that any agreement should be made in writing.

Under Civil and Commercial Code, section 653 states that a loan of money for a sum exceeding two thousand baht in capital is not enforceable by action unless there is some written evidence of the loan signed by the borrower

First, we talk about the amount of money. Only a loan of money that exceeds two thousand baht is needed to do in writing, otherwise such loan cannot be taken by action. Therefore, any loan of money can be made by oval. However, I recommend that always make it in writing.

“Some written evidence” some people understand that the loan agreement must be made only in a piece of paper. Actually, you can write a loan agreement anywhere. You may make it on a wall, a table, your body, etc.  However, the loan agreement should be written in a paper because it is easier to show the Court. Please be noted that in the loan agreement must at least show that someone borrows your money, and he will repaid, the amount of money, and signed by the borrower. A name of lender, the expected date of repayment, the date of loan agreement are not needed. However, the more information you put in the agreement, the easier to prove to the Court.

Edition or Alternation of a loan agreement

***If a loan agreement is made completely, the second loan agreement should be made separately from the first one. If the second loan agreement is not made, the borrower just crosses the amount of money of the first loan out, combines the amount of money for the first and second loan together, and put it in the first agreement without signing his name again. Only the first loan agreement is considered to be written evidence. 

For an example, Mr. Peter borrows Miss Somsri for the amount of five thousand baht. They both make a loan agreement already. On the same day, Peter needs two thousand baht more, so they agree that they crosses out five thousand baht out and put seven thousand baht instead in the agreement. Under law, only the loan agreement for five thousand baht is considered to be written evidence.  Therefore, Peter is liable for only five thousand baht.

In addition, law provides that interest shall not exceed fifteen percent per year; when a higher rate of interest is fixed by the contract, it shall be reduced to fifteen percent per year.

Time to pay back

If a loan agreement is made in writing and the borrower repay by money, the borrower can prove the repayment to the Court when:

1. There is some written evidence signed by the lender; or
2. The document evidencing the loan has been surrendered to the borrower; or
3. The document evidencing the loan has been canceled

Therefore, if the borrower repay by giving things, not money, the borrower does not need to follow the either method as mentioned above to prove the Court.

Disclaimer: The information provided on this site is for informational purposes only. No warranty is expressed or implied.
Before taking any legal action, persons are advised to seek the advice of a lawyer qualified in the area of law concerned.

                       Wills under Thai Law

            What do you think about a will? Under Civil and Commercial Law, section 1620 states that where a person dies without having made a will, or if having made a will, his will has no effect, the whole of his estate shall be distributed among his statutory heirs according to law.

            Therefore, if you die without making a will, your all property will be distributed to your son, daughter, parents, etc. Many problems arising to the family that a will is not made. When you die, your son may not know how much estate you have and where it is? Your son needs to collect it and apply to the Court to appoint an administrator of the estate. And that takes time! Furthermore, your children may kill each other just because of your estate. So, a will is a good solution for you and your children. You can manage your estate or other matters which will take effect after your death.

            You know you can make a will by yourself, no need to hire a lawyer. The will you yourself can make must be in the form as follows:

1. A will must be made in writing, dated at the time of the making of the will and signed by the testator before at least two witnesses present at the same time who shall then and there sign their names certifying the signature of the testator. Be careful! If you would like to erase, add or do other alteration in the will, you must make it in the same form as prescribed above.
2. A will must write with his own hand the whole text of the document, the date and his signature. Be careful! If you would like to erase, add or do other alteration in the will, you must make by your own hand and signed by you.

     Please be noted that the writer of the will or a witness thereof cannot be a legatee under such will.

     In addition, the following person cannot be witnesses of a will:

1. A minor( a person is under twenty years of age);

2. A person of unsound mind or a person adjudged quasi-incompetent;

3. A person who are deaf or dumb or blind.

People do not know when people will die. A will can make sure that any estate we have will be transferred to the person we would like to give after death.

Disclaimer: The information provided on this site is for informational purposes only. No warranty is expressed or implied.
Before taking any legal action, persons are advised to seek the advice of a lawyer qualified in the area of law concerned.

Gift under Thai Law          

            “Gift” it seems to be easy to understand this word, and there is nothing to explain this word too.  In your life, I believe that you ever give something to other. When you give something to someone, can you take it back? Can you give a house or land to someone by oval? Is the donor liable for the defect of given property?

            Under Civil and Commercial Code, section 523 states that a gift is valid only on delivery of the property given.  Therefore, just only say “I will give you a book or a ring” there is no effect to law until the donee has received property from the donor. Furthermore, a gift includes the release of an obligation or performing an obligation due from the done.

            When a gift is to gratuitously transfer a property of his own to another person, the donor is not liable to the donee for any defect of the given property.

            Importantly, a gift of immovable property is valid only when it is made in writing and registered by the competent official. Therefore, if someone tells you that he will give you a land in return, do not remember to tell him to go to the land department to register and transfer the land to you. Therefore, a gift agreement with a clause providing that the land registration will be made in seven days is invalid. In the other words, the donee cannot bring a case to the Court against the donor by claiming that the donor has to register the land transfer for the donee.

            Can the donor take a gift back from the donee? Yes, but only the following case:

1. If the donee committed a serious criminal offence punishable under the Penal Code against the donor, or 

For an example, the donee shoots the donor, but not to dead.

 2. If the donee seriously defamed or insulted the donor, or

For an example, the donee defames and insults the donor that “you are not my father, get out! If you do not go, I will kill you.”

3. If the donee refused the donor who is in need of the necessaries of life while he was able to supply them

            Therefore, aside from cases mentioned above, the donor cannot take the gift back as his own mind.

            However, if the donor has forgiven the done, a gift cannot be revoked, or if six months have elapsed since the time when the act of ingratitude came to the knowledge of the person entitled to claim revocation.

             Interestingly! The donor cannot claim revocation of a gift for an act of ingratitude for the following gift:

1. Gifts purely remuneratory.

For an example, Peter’s  car tires get flat, and Mr.B  helps fixing it. So, Peter give some money to Mr.B

2. Gifts encumbered with a charge

3. Gifts made in compliance with a moral duty

For an example, before a mother dies, she gave a land to her son, and told him that you must give the half land to his brother. Then the son gave the half land to his brother as mother requested.

4. Gifts made in consideration of marriage

When you give things to someone, do not expect anything in return.  Believe Me!

Disclaimer: The information provided on this site is for informational purposes only. No warranty is expressed or implied.
Before taking any legal action, persons are advised to seek the advice of a lawyer qualified in the area of law concerned.