Extra-contractual Liabilities Under Thai Law

In this collection, the Asian Business Law Institute ("ABLI") briefly discusses issues concerning extra-contractual liabilities in select civil, common and hybrid jurisdictions. Earlier collections have examined indemnity and liquidated damages clauses, contractual breach and remedy, interpretation of contracts, administrative and tax requirements of contracts, choice-of-law and choice-of-forum clauses in commercial contracts, as well as party identification and execution of contracts in those same jurisdictions.

The short article below provides a brief overview of key matters concerning extracontractual liabilities under Thai law and practice.

Contract negotiations

Other than the duty to act in good faith under Section 5 of the Civil and Commercial Code, Thai law does not impose any obligations on parties when they negotiate a commercial contract. There is also no legal requirement on minimum information disclosure during contractual negotiations under Thai