Breach of contract cases occur when a party to an agreement fails to perform their side of a contract. Examples of breach of contract include: disputes caused when a supplier fails to send contracted goods, or when a purchaser fails to pay an agree-upon sum or when a contract fails to perform a service. Other types of contracts that may result in breach of contract cases include labor and employment agreements, loan agreements, leases and real estate agreements.
Complaint in Thailand Courts
Thailand law allows for a number of legal actions against parties that fail to perform pursuant to a contractual obligation. In practice, most attorneys will attempt to recover the debt through informal methods. However, Court action is often necessary. Thailand Courts also provide methods to seize and liquidate (sell) assets of a debtor to enforce a Court judgment. This action, generally called "enforcement of a judgment" or "execution of a judgment" normally occurs after a judgment is obtained and in the event that payment is not made on the judgment voluntarily by the debtor. Interest and costs are also recoverable through the Thailand Court.
Demand Letter, Letter of claim or Notice
Prior to filing a court complaint, most attorneys will send a demand letter/letter of claim (termed "notice" in Thailand) to the Debtor and request compliance or payment within a specified period of time.
If a settlement agreement can be reached, or payment can be made by the Debtor, a court action may not be necessary.