Contracts in Thailand

[CALSinCM]

I'm planning on selling a motorcycle here in Thailand. Most all potential buyers will want to ride the bike. In order to protect myself from liability and damages if the potential buyer gets into an accident while test driving, I will want that person to sign a contract.

Here's the questions:

Will a contract written in English stand up in a Thai court?

[gerry123]

unlikely that

it would help much in Thai or English i shudder to think of the complications if somebody wishes to purchase your bike takes it up the road

prangs it they would just take off leaving you with a great looking piece of paper and you responsible for any damage they may have caused/done in the process oh i forgot and whats left of your bike

[EvolvingApe]

A written agreement is considered proof by Thai law and is often necessary for laws to be enforcable. For such a simple 'gentlemen's agreement' as you describe this would be useful if you ever were forced to take things to court.

[Trentham]

How will you be sure the test rider will bring the bike back at the end of the test? I suggest that you hold his/her ID card or some other item of value.

[crazykopite]

I pay proper insurance of just over 3,000 baht per year this covers the driver and pillion rider I never understand why people do not get additional insurance the government insurance is a worthless piece of paper I have a Honda Phantom so I would imagine a scooter with a smaller engine would be even cheaper

[Dr. Burrito]

The language of the kingdom is Thai, thus contracts should be in Thai

[Satcommlee]

Yes, a contract written in English will stand up in a Thai court.

We have been told this by our company lawyers and all our company contracts are in English.

With English being the official language of ASEAN and AEC2015, they havn't got much choice but to judge English Contracts, however bickering over Thai translations between plaintiff and defendant will no doubt be common place.

Although I'm not sure of any boiler plate clauses that would be needed in your business.

[belg]

see that it does not get plain stolen under your nose...

let them ride on the bag, you do the drivin, so you are sure someone else does not cause the accident

[Eneukman]

The language of the kingdom is Thai, thus contracts should be in Thai

I can't see why a contract written only in English would be invalid provided it was written in accordance with Thai law. However, if there is an English version and a Thai version, the Thai version will always take precedence.

Alan

[Suradit69]

The language of the kingdom is Thai, thus contracts should be in Thai

And if the potential buyer is Thai, odds are he won't understand what it is you're asking him to sign, which might be the basis for a legal defense.

Beyond that, a contract between the two of you would probably not limit your liability (whatever the law states it to be) for damage caused. Someone else who is injured or suffers loss can't be prevented from seeking compensation from you just because you and the buyer signed some paper.

I'm fairly certain that the validity of contracts in English because of ASEAN would apply to commercial law for registered businesses. The type of thing you're talking about might still be unenforceable at a lower level domestic civil court, especially something you cobbled together in an attempt to exempt yourself from liability.

[Asiantravel]

How will you be sure the test rider will bring the bike back at the end of the test? I suggest that you hold his/her ID card or some other item of value.

Yes, their ID or passport.

Plus, surely you can find some large area, depending where you are, such as Muang Thong Thani exhibition Centre in Bangkok or someone similar such as a sports stadium they have in pattaya which has a large parking area where essentially everyone goes to learn to drive.

that way a potential buyer doesnt have to go out on the open road and you could watch them

Edited February 5, 2014 by Asiantravel

[recycler]

Yes, a contract written in English will stand up in a Thai court.

We have been told this by our company lawyers and all our company contracts are in English.

With English being the official language of ASEAN and AEC2015, they havn't got much choice but to judge English Contracts, however bickering over Thai translations between plaintiff and defendant will no doubt be common place.

Although I'm not sure of any boiler plate clauses that would be needed in your business.

If all parties involved agree on the English contract, you can use English. But if you have to go to court there needs to be a Thai translation that will be leading. Thai is the only official language in the country and the court and you will have a hard time finding a judge that can read enough English to understand a legal document in English.

The next problem you get than is that the Thai language is not adequate to make proper legal documents, so some things will be lost in translation.

I work for a Thai company with Thai customers, but many contracts are in English.... for that reason.

For important business matters you can also agree to appoint an arbitration organization, there are some internationally operating bodies for that.

For selling a motorcycle I wouldn't bother too much as even if something happens it will get you nowhere.

[doublephil]

Having been involved in several court cases here in Thailand that involved the validity of written contracts in English - I can tell you - from my experience - that a Thai court will only accept a contract written in another language if a certified Thai translation by a professional translation service is also presented. A Thai court will not consider any document or evidence in a foreign language - unless accompanied by such a certified translation

[Naroge]

Yes, English is OK.

I have seen many contracts even between private (foreign and Thai) companies and Thai State companies fully in English.

[ironhorse10]

When I bought my Bike, the owner wanted me to test drive it, I said no, I didnt need to test drive as long as it was running it was fine with me, I rode behind him to the post office and mailed the bike to Chiang Mai. I would never let anyone test drive my bike, no need for that, and a contract in English will hold up in Thai court.

[rct99q]

The language of the kingdom is Thai, thus contracts should be in Thai

And if the potential buyer is Thai, odds are he won't understand what it is you're asking him to sign, which might be the basis for a legal defense.

Beyond that, a contract between the two of you would probably not limit your liability (whatever the law states it to be) for damage caused. Someone else who is injured or suffers loss can't be prevented from seeking compensation from you just because you and the buyer signed some paper.

I'm fairly certain that the validity of contracts in English because of ASEAN would apply to commercial law for registered businesses. The type of thing you're talking about might still be unenforceable at a lower level domestic civil court, especially something you cobbled together in an attempt to exempt yourself from liability.

The above is your best answer.

If the person signing the contract is able to read and understand English, no problem. If the person signing the contract is Thai and does not understand the language of the contract you may find yourself in some difficulties if it is proven the person did not fully understand the details. But there is no "law" that states contracts must be written in Thai.

[Notable]

Lol

[sabotos]

I've bought used bikes in the US, UK, and Thailand. Sold many in the states. The custom every time in all places has been full price in cash in hand before a test ride. You drop it, you bought it. It's the only way, really.-

Edited February 5, 2014 by sabotos

[lostinisaan]

Hello,

I'd sold two big bikes in the northeast and am a sort of familiar with it.To answer your question, a contract written in any language is okay. Would something happen, then you'd have to get it translated into Thai let's say if something seriously had happened.

I'd suggest to make a copy of his/her ID and let him/her sign your agreement. Make sure that you've got a witness, eg your wife, gf, etc....

Wish you good luck, I'd to sell mine and really miss my freedom I had. Live to Ride. Ride to Live.

[lostinisaan]

I've bought used bikes in the US, UK, and Thailand. Sold many in the states. The custom every time in all places has been full price in cash in hand before a test ride. You drop it, you bought it. It's the only way, really.-

As a biker in Thailand, I'd like to proof you wrong. It's called a test ride to check if a customer is okay with the appearance of the bike.

Nobody, and I mean nobody would give you the full amount in cash before.

There might be a chance of a deposit, but that's it, just in case the guy drops it. Really.

[falangadang]

A written agreement is considered proof by Thai law and is often necessary for laws to be enforcable. For such a simple 'gentlemen's agreement' as you describe this would be useful if you ever were forced to take things to court.

Yes,.. but one very important thing needs to be taken into consideration here and that is "interpretation" and "genuine consent". If the purchaser can plead that he didn't fully understand the terms or meaning of the contract he could thereby claim that he did not give genuine consent to the contract and that my friend would place you on a sticky wicket.

Most Thai judges don't have a very good command of English and furthermore it is a "Thai" judicial system and not a "Thai system that is bound to foreign sympathy". I think you could find that if you went to a Thai court with a contract written in English then the question could be raised as to "why" when you should have had it written in both languages and carefully edited for accuracy and relevance otherwise you might find it being worth less than the paper it was written on!

[siddv]

Take all the precautions you want. Its worthless. You are a farlang in Thailand. You have no rights what so ever. . Don't let anyone kid you and certainty don't waste your money on legal advise . Really if somebody gets hurt on ur bike on a test drive you are going to fight the police then hire a Thai lawyer and then go to a Thai court? Really? Do you think this is how things will develop?

[lostinisaan]

Having been involved in several court cases here in Thailand that involved the validity of written contracts in English - I can tell you - from my experience - that a Thai court will only accept a contract written in another language if a certified Thai translation by a professional translation service is also presented. A Thai court will not consider any document or evidence in a foreign language - unless accompanied by such a certified translation

I'd sold my bikes to foreigners and had no problem at all. Then why not having one in English, one in Thai, one in Russian ,one in......I'm tired.

[lostinisaan]

How will you be sure the test rider will bring the bike back at the end of the test? I suggest that you hold his/her ID card or some other item of value.

Yes, their ID or passport.

Plus, surely you can find some large area, depending where you are, such as Muang Thong Thani exhibition Centre in Bangkok or someone similar such as a sports stadium they have in pattaya which has a large parking area where essentially everyone goes to learn to drive.

that way a potential buyer doesnt have to go out on the open road and you could watch them

Or you go and figure out where a good road with not many cars/motorbikes, two and four legged buffaloes is and drive behind him/her.My god this guy only wants to sell a motorcycle, not his soul.

[CALSinCM]

How will you be sure the test rider will bring the bike back at the end of the test? I suggest that you hold his/her ID card or some other item of value.

By requiring the full asking price of the bike prior to the test ride. That takes care of that problem and narrows down interest to only serious buyers.

[CALSinCM]

The language of the kingdom is Thai, thus contracts should be in Thai

And if the potential buyer is Thai, odds are he won't understand what it is you're asking him to sign, which might be the basis for a legal defense.

Beyond that, a contract between the two of you would probably not limit your liability (whatever the law states it to be) for damage caused. Someone else who is injured or suffers loss can't be prevented from seeking compensation from you just because you and the buyer signed some paper.

I'm fairly certain that the validity of contracts in English because of ASEAN would apply to commercial law for registered businesses. The type of thing you're talking about might still be unenforceable at a lower level domestic civil court, especially something you cobbled together in an attempt to exempt yourself from liability.

That is true. Under contract law that would fall under the category of 'capacity to contract' (I believe). It could be argued by a Thai that they didn't understand the contract. However, have you ever signed a contract written in Thai? Take a look at things like rental agreements, or any sales receipt or receipt for service -- maybe a little English and a lot of Thai in the contract. You could argue that you didn't understand the Thai, but I doubt you'd get far. Satcommlee in post #7 has a point. ASEAN and AEC2015 will require English as the common language. That's significant because essentially business needs to be conducted in a common language to facilitate global trade. If suddenly an English contract is invalidated because one party to the contract was Thai and argues that they signed in diminished capacity because they couldn't fully understand English, that would set a precedent that would turn the international trade agreements upside-down. Honestly, if I sold it to a German, or a Russian, or a Finn they could use the same argument, couldn't they? They didn't understand the contract because it wasn't in their native language.

But in my case, I guess I'd require a Thai buyer to fund the cost of translating the contract to Thai just to be safe.

Edited February 5, 2014 by CALSinCM

[CALSinCM]

The language of the kingdom is Thai, thus contracts should be in Thai

And if the potential buyer is Thai, odds are he won't understand what it is you're asking him to sign, which might be the basis for a legal defense.

Beyond that, a contract between the two of you would probably not limit your liability (whatever the law states it to be) for damage caused. Someone else who is injured or suffers loss can't be prevented from seeking compensation from you just because you and the buyer signed some paper.

I'm fairly certain that the validity of contracts in English because of ASEAN would apply to commercial law for registered businesses. The type of thing you're talking about might still be unenforceable at a lower level domestic civil court, especially something you cobbled together in an attempt to exempt yourself from liability.

Beyond that, a contract between the two of you would probably not limit your liability (whatever the law states it to be) for damage caused. Someone else who is injured or suffers loss can't be prevented from seeking compensation from you just because you and the buyer signed some paper.

Actually that's called an indemnity agreement, so yes you can. I've actually dug up some contracts and indemnity agreements used by the likes of BMW. If you could not protect yourself legally by shifting responsibility to the contracting party, then businesses like motorcycle rentals, car rentals, and tour services that offer 'risky' tours like 'white water rafting' would fail to exist.

[Spoonman]

Have the test rider leave as a deposit the full amount for the bike and then both of you sign a bill of sale before the test ride. if the bike returns un damaged and the person does not want it tear up contract and return the money.

[a99az]

No

[Spoonman]

No

Yes