Civil Cases
Mortgage Breach of Contract Case
A “mortgage” refers to the process by which one party, referred to as the “mortgagor,” pledges their real estate, which may include homes or land, as collateral to another party, referred to as the “mortgagee,” as a guarantee for debt repayment. This is done without transferring the ownership of the said property to the mortgagee. The mortgage is formalized in a written document and registered with the appropriate officials. Relevant regulations regarding such mortgages can be found in the Civil and Commercial Code, which stipulates the following important sections:
Section 702: “A mortgage is a contract whereby a person, called the mortgagor, assigns a property to another person, called the mortgagee, as security for the performance of an obligation, without delivering the property to the mortgagee.
The mortgagee is entitled to be paid out of the mortgaged property in preference to ordinary creditors regardless as to whether or not the ownership of the property has been transferred to a third person.”
Section 714: “A contract of mortgage must be made in writing and registered by the competent official.”
Breach of Loan Agreement Case
The Civil and Commercial Code stipulates concerning borrowing money in Section 653 “A loan of money for a sum exceeding two thousand baht in capital is not enforceable by action unless there be some written evidence of the loan signed by the borrower.
No repayment of a loan of money evidenced by writing may be proved unless there be some written evidence signed by the lender, or the document evidencing the loan has been surrendered to the borrower or cancelled.”
In cases that have to pay interest but it is not explicitly stipulated by a legal contract or a clear legal provision, the interest rate has been revised. The previous 7.5% per annum rate has been adjusted to 3% per annum.
In case of an amendment, default interest rate (non-specified other). The original rate of 7.5% per annum (comprising the stipulated 3% per annum as per Article 7, plus an additional 2% per annum) has been revised to 5% per annum.
In calculating the default interest for installment payments, the previous methodology was based on the total outstanding principal amount. The new provision dictates that the interest, during the default period, must only be calculated on the specific principal amount that was defaulted upon and cannot otherwise be mutually agreed upon.
Breach of Sales Contract Case
The Civil and Commercial Code stipulates the definition of an important Sales Contract following these:
Trading of Movable Property Section 453 “Sale is a contract whereby a person, called the seller, transfers to another person, called the buyer, the ownership of property, and the buyer agrees to pay to the seller a price for it.”
Trading of Immovable Property Section 456: “A sale of immovable property is void unless it is made in writing and registered by the competent official. The same rule applies to ships or vessels of six tons and over, to steam launches or motor boats of five tons and over, to floating houses and to beasts of burden. (Car sales, homes, farm animals)
An agreement to sell or to buy any of the aforesaid property, or a promise of sale of such property is not enforceable by action unless there is some written evidence signed by the party liable or unless earnest is given, or there is part performance.
The provisions of the foregoing paragraph shall apply to a contract of sale of movable property where the agreed price is five hundred baht or upwards.”
The statute of limitations for breach of sales contract cases varies according to the law’s stipulations. The statute begins to run from the date when the right to claim arises:
1. In cases where suit enforcement according to the contract is sought, the statute of limitations is 10 years.
2. For the purchase of goods for personal use or one’s own business, the statute of limitations is 2 years.
3. In cases where goods are purchased for the purpose of conducting another business, the statute of limitations is 5 years.
4. For cases claiming liability for defects or damages, the statute of limitations is 1 year.
Land Case
Land is an Immovable Property as stipulated in the Civil and Commercial Code
Section 139: “Immovable property denotes land and things fixed permanently to land or forming a body therewith. It includes real rights connected with the land or things fixed to or forming a body with land.” The significant disputes related to land and other Immovable Properties are as follows:
1. Adverse Possession Case
According to the Civil and Commercial Code Section 1382: “Where a person has, for an uninterrupted period of ten years in case of an immovable, or five years in case of a movable, peacefully and openly possessed a property belonging to another, with the intention to be its owner, he acquires the ownership of it.”
2. Land Reclamation Case
According to the Civil and Commercial Code Section 1375: “Where a possessor is unlawfully deprived of possession, he is entitled to have it returned, unless the other party has over the property a better right which would entitle him to claim it back from the possessor.
An action for recovery of possession must be entered within one year from the time of dispossession.”
3. Right of Way Case
According to the Civil and Commercial Code Section 1350: “Where land has been so partitioned or partially transferred that a plot is left without access to a public way, the owner of such plot may claim right of way under the forgoing section only over the land which has been so partitioned or partially transferred. In such case, no compensation need to be paid”
4. Servitudes Case
According to the Civil and Commercial Code Section 1378: “An immovable property may be subjected to a servitude by virtue of which the owner of such property is bound, for the benefit of another immovable property, to suffer certain act affecting his property or to refrain from exercising certain rights inherent in his ownership.”
Section 1401: “The provisions concerning prescription as described in Title III of this Book shall apply mutatis mutandis.”
Other land-related cases include breaches of land or real estate sale agreements, cases of possessing land instead of another, suits seeking partition of property rights in land, and issues of consignment sales of land, among others.
Eviction Case
Eviction litigation refers to instances where the owner of the property rights, or someone with possession rights over land or real estate, exercises their legal rights to file a lawsuit to forcibly evict individuals, including unauthorized occupants, who occupy or use the land without permission, or who remain on the property beyond the term stipulated in an agreement. There are several significant grounds on which one can base an eviction claim in civil cases, including:
1. Trespassing: Involves occupying someone else’s land without permission or staying beyond the agreed-upon contract duration.
2. Residency Rights: When the right to reside has expired, the owner can sue to evict the occupant.
3. Other Eviction Cases: Examples include rights above the ground, harvesting rights, leasing rights, etc.
Eviction litigation is not only a civil case but can also be related to criminal cases, such as trespassing, as stipulated in sections 362-366 of the Criminal Code (Depending on the circumstances).
Torts Case
In cases involving torts, the Civil and Commercial Code prescribes the following:
– General Torts Section 420: “A person who, willfully or negligently, unlawfully injures the life, body, health, liberty, property or any right of another person, is said to commit a wrongful act and is bound to make compensation therefore.”
– Exercise of rights unlawful Section 421: “The exercise of a right which can only have the purpose of causing injury to another person is unlawful.”
– Torts by Defamation or slander against others Section 423: “A person who, contrary to the truth, asserts or circulates as a fact that which injurious to the reputation or the credit of another or his earnings or prosperity in any other manner, shall compensate the other for any damage arising therefrom, even if he does not know of its untruth, provided he ought to know it.
A person who makes a communication the untruth of which is unknown to him, does not thereby render himself liable to make compensation, if he or the receiver of the communication has a rightful interest in it.”
– Torts of employee:
Section 425: “An employer is jointly liable with his employee for the consequences of a wrongful act committed by such an employee in the course of his employment.”
Section 426: “The employer who has made compensation to a third person for a wrongful act committed by his employee is entitled to reimbursement from such employee.”
– Torts of The contractor:
Section 428: “An employer is not liable for damage done by the contractor to a third person in the course of the work, unless the employer was at fault in regard to the word ordered or to his instructions or to the selection of the contractor.”
Inheritance Case
Inheritance cases refer to disputes where heirs entitled to the deceased’s inheritance have disagreements over their rights to inherit, whether based on legal provisions or a testamentary will, depending on the circumstances. Important cases related to inheritance include:
– Petition to appoint of the Estate Administrator Case.
When the decedent passes away, an eligible person can petition the court to appoint an estate administrator for the deceased’s assets, as stipulated in the Civil and Commercial Code, Section 1713: “Any heir or any interested person or the Public Prosecutor may apply to the Court to appoint an administrator of the estate in the following cases:
1. If on the death of the de cujus any statutory heir or legatee is not found or is abroad or is a minor;
2. If the administrator of the estate or the heir is unable or unwilling to carry on or is impeded in carrying on the administration or distribution of the estate
3. If a testamentary disposition appointing an administrator of the estate has no effect for any reason whatsoever
Such appointment shall be made by the Court in accordance with the provisions of the will, if any. Failing such provision the Court may make the appointment for the benefit of the estate, having regard to the circumstances and taking into consideration the intention of the de cujus as the Court may think fit.”
Heirs entitled to inheritance under the law are in accordance with the Civil and Commercial Code, Section 1629 and Section 1635. This includes legally married husband or wife, descendants, fathers and mothers, siblings sharing the same fathers and mothers, siblings sharing only the same father or mother, grandparents, uncles, aunts, and cousins.
– Petition to revocation of the Estate Administrator Case
When the court has issued an order appointing an estate administrator, and it subsequently appears that the administrator fails to perform their duties or commits any unlawful acts as stipulated by the law, interested parties or those affected have the right to file a petition to revoke the estate administrator. This is in accordance with the Civil and Commercial Code.
Section 1727: “Any interested person may, prior to the completion of the distribution of the estate, apply to the Court for the discharge of an administrator for reason of neglect of his duties or any other reasonable cause.
Even after having assumed his functions, the administrator may resign for any reasonable cause subject, however, to the permission of the Court.”
– Division of Inheritance Case
In the context of the inheritance administrator failing to perform their duties by not allocating and dividing the inherited property among the heirs with the legal right to the inheritance. In that case, it is considered that the estate administrator has not fulfilled their responsibilities. This is seen as infringing upon the rights of the heirs entitled to the inheritance. Therefore, such heirs can file a lawsuit for the division of the inherited property in court, in accordance with the Civil and Commercial Code, Section 1754: “An action concerning inheritance cannot be entered later than one year after the death of the de cujus or after the time when the statutory heir knows or ought to have known of such death.
An action concerning a legacy cannot be entered later than one year after the time when the legatee knows or ought to have known of the rights to which he is entitled under a will. Subject to the provisions of Section 193/17 of this Code, a creditor having against the de cujus a claim which is subject to a prescription longer than one year is barred from bringing an action after one year from the time when he knows or ought to have known of the death of the de cujus.
In no case shall claims under the foregoing paragraphs be entered later than ten years after the death of the de cujus.”
Revocation of a legal act case
The Civil and Commercial Code, Section 237: “The creditor is entitled to claim cancellation by the Court of any juristic act done by the debtor with knowledge that it would prejudice his creditor; but this does not apply if the person enriched by such act did not know, at the time of the act, or the facts which could make it prejudicial to the creditor, provided, however, that in case of gratuitous act the knowledge on the part of the debtor alone is sufficient.
The provisions of the foregoing paragraph do not apply to a juristic act whose subject is not a property right.”
The aforementioned provisions show that any legal transaction that has been conducted, resulting in a disadvantage or harm to the creditor, is considered to have been carried out in bad faith. Such a transaction is voidable. Thus, the creditor has the right to litigate in court, seeking a judgment or order to set aside that legal transaction. Examples include lawsuits to revoke the sale of land, lawsuits to revoke the sale of a condominium, and lawsuits to annual gifts.
Other Civil Cases
In addition to the various civil cases mentioned above, there are numerous other civil claims, including cases related to consignment sales breaches, pawn agreements, asset recovery, asset partitioning, and issues concerning partnerships and corporations, such as lawsuits to revoke resolutions made in meetings, among others.