Dispute Resolution
Thailand: State's prerogative to unilaterally terminate an administrative contract
Introduction
Over the past decade, the Thai government has launched numerous initiatives to stimulate economic growth, with a key strategy being the promotion of cooperation and investment from the private sector. Legally, such cooperation is formalized through contracts between the government and private investors. When these contracts involve the provision of public services, they may be classified under Thai law as “administrative contracts.” Despite their significance, there is no comprehensive statute governing the substantive relationship between the parties. Currently, the legal framework for administrative contracts is largely shaped by case law from the Supreme Administrative Court. Often, parties in litigation encounter precedents they were previously unaware of, making the law surrounding administrative contracts somewhat of a Pandora’s box.
05 August 2025