Thailand Civil and Commercial Code Sections-518-571

TITLE II

EXCHANGE

 

Section 518 Exchange is a contract in which both parties transfer ownership rights to each other.

Section 519 For the purposes of any legal provisions related to selling and buying, exchange is included in such provisions, implying that both parties are sellers and buyers for the transfer of properties.

Section 520 If one party to the exchange agrees to add money in addition to the exchange of property, the sale price includes this additional cash payment.

TITLE III

GIFT

 

Section 521 A gift is a contract where a person, called the donor, gratuitously transfers property they own to another person, called the donee, who accepts the property.

Section 522 A gift may be made by granting the donee a release from an obligation or by performing an obligation owed by the donee.

Section 523 A gift is valid only upon the delivery of the property given.

Section 524 If a right represented by a written instrument is given, the gift is not valid unless the instrument is delivered to the donee and the gift is notified in writing to the debtor of the right.

Section 525 A gift of property that must be sold in writing and registered by a competent official is valid only when it is made and registered by the competent official. In this case, delivery is not required.

Section 526 If a gift or a promise of a gift has been made in writing and registered by the competent official, and the donor does not deliver the property to the donee, the donee may claim delivery of the property or its value, but is not entitled to any additional compensation.

Section 527 If the donor is obligated to make periodic performance, this obligation is extinguished upon the death of either the donor or the donee, unless a contrary intention appears in the obligation.

Section 528 If the gift is encumbered with a charge and the donee fails to perform the charge, the donor may, under the conditions specified for the right of rescission in the case of reciprocal contracts, demand the return of the gift under the provisions relating to the return of undue enrichment, to the extent that the gift should have been applied to the performance of the charge. This claim is barred if a third party is entitled to require the performance of the charge.

Section 529 If the property given is not sufficient to satisfy the charge, the donee must perform only to the extent of the value of the property.

Section 530 If the gift is encumbered with a charge, the donor is liable for defects or eviction in the same manner as the seller, but only to the extent of the charge.

Section 531 The donor can claim revocation of a gift for an act of ingratitude only in the following cases:

1. If the donee has committed a serious criminal offense punishable under the Penal Code against the donor, or
2. If the donee has seriously defamed or insulted the donor, or
3. If the donee has refused to provide the donor, who is in need of the necessities of life, with such necessities while being able to do so.

Section 532 The heir of the donor can claim revocation only if the donee has intentionally and unlawfully killed the donor or prevented the donor from revoking the gift. However, the heir may continue an action that has been duly entered by the donor.

Section 533 A gift cannot be revoked if the donor has forgiven the donee, or if six months have elapsed since the act of ingratitude was known to the person entitled to claim revocation. No action for revocation can be brought later than ten years after the act.

Section 534 If the gift is revoked, the property shall be returned under the provisions of this Code concerning undue enrichment.

Section 535 The following gifts are not revocable for ingratitude:

1. Gifts that are purely remuneratory.
2. Gifts that are encumbered with a charge.
3. Gifts made in compliance with a moral duty.
4. Gifts made in consideration of marriage.

Section 536 A gift that takes effect at the death of the donor is governed by the provisions of the law concerning inheritance and wills.

PART II

Hire of Property

 

Section 537 A hire of property is a contract whereby a person, called the lessor, agrees to let another person, called the hirer, have the use or benefit of a property for a limited period of time, and the hirer agrees to pay rent for that period.

Section 538 A hire of immovable property is not enforceable by action unless there is written evidence signed by the party liable. If the hire is for more than three years or for the life of the lessor or hirer, it is enforceable only for three years unless it is made in writing and registered by the competent official.

Section 539 The costs of a contract of hire are borne equally by both parties.

Section 540 The duration of a hire of immovable property cannot exceed thirty years. If it is made for a longer period, the period shall be reduced to thirty years. This period may be renewed, but it must not exceed thirty years from the time of renewal.

Section 541 A contract of hire may be made for the duration of the life of the lessor or of the hirer.

Section 542 When several persons claim the same movable property under different contracts of hire, the hirer who first took possession of the property under their contract shall be preferred.

Section 543 When several persons claim the same immovable property under different contracts of hire:

1. If none of the contracts is required by law to be registered, the hirer who first took possession of the property under their contract shall be preferred.
2. If all the contracts are required by law to be registered, the hirer whose contract was first registered shall be preferred.
3. If there is a conflict between a contract required by law to be registered and a contract not required to be registered, the hirer whose contract has been registered shall be preferred, unless the other hirer took possession of the property under their contract before the date of registration.

Section 544 Unless otherwise provided by the contract of hire, a hirer cannot sublet or transfer their rights in the whole or part of the property hired to a third person.

Section 545 If the hirer rightfully sublets the property hired, the sub hirer is directly liable to the lessor. In such a case, a payment of rent made in advance by the subhirer to the hirer who sublets cannot be set up against the lessor. This provision does not prevent the lessor from exercising their rights against the hirer.

Chapter II

Duties and Liabilities of the Lessor

 

Section 546 The lessor is bound to deliver the property hired in a good state of repair.

Section 547 The lessor is bound to reimburse the hirer for any necessary and reasonable expenses incurred by the hirer for the preservation of the property hired, except for expenses related to ordinary maintenance and petty repairs.

Section 548 If the property hired is delivered in a condition unsuitable for the purpose for which it is let, the hirer may terminate the contract.

Section 549 The delivery of the property hired, the lessor’s liability in case of defects and eviction, and the effects of a non-liability clause are governed by the provisions of this Code concerning sale, mutatis mutandis.

Section 550 The lessor is liable for any defects that arise during the continuance of the contract, and must make all necessary repairs, except those that are by law or custom to be done by the hirer.

Section 551 If the defect is not such that it would deprive the hirer of the use and benefit of the property hired, and can be remedied by the lessor, the hirer must first notify the lessor to make the necessary repairs. If the defect is not remedied within a reasonable time, the hirer may terminate the contract, provided that the defect is serious enough to justify this course of action.

Chapter III

 Duties and Liabilities of the Hirer

 

Section 552 The hirer cannot use the property hired for any purpose other than those that are ordinary and usual, or those specified in the contract.

Section 553 The hirer is bound to take as much care of the property hired as a person of ordinary prudence would take of their own property, and to perform ordinary maintenance and petty repairs.

 Section 554 If the hirer acts contrary to the provisions of Sections 552 or 553, or contrary to the terms of the contract, the lessor may notify the hirer to comply with such provisions or terms, and if the hirer fails to comply, the lessor may terminate the contract.

Section 555 The hirer is bound to allow the lessor or their agents to inspect the property hired at reasonable times.

Section 556 If the property hired requires urgent repairs during the continuance of the contract, and the lessor wishes to perform such repairs, the hirer cannot refuse permission for the necessary repairs to be done, even if it may cause them some inconvenience. However, if the repairs are of such a nature that they would take an unreasonable length of time and thereby make the property unsuitable for the purpose for which it was let, the hirer may terminate the contract.

Section 557 In any of the following cases:

If the property hired is in need of repairs by the lessor, or

If a preventive measure is required to avoid a danger, or

If a third person encroaches on the property hired or claims a right over it,

the hirer shall forthwith inform the lessor of the occurrence, unless the lessor already has knowledge of it. If the hirer fails to comply with this provision, they are liable to the lessor for any injury resulting from the delay caused by such failure.

Section 558 The hirer may not make alterations to, or additions to, the property hired without the permission of the lessor. If the hirer makes such alterations or additions without permission, they must, at the lessor’s request, restore the property to its former condition and are liable to the lessor for any loss or damage that results from such alterations or additions.

Section 559 If no time for the payment of rent is fixed by the contract or by custom, the rent must be paid at the end of each period for which it is stipulated. For example, if a property is hired at a yearly rate, the rent is payable at the end of each year; if a property is hired at a monthly rate, the rent is payable at the end of each month.

Section 560 In the event of non-payment of rent, the lessor may terminate the contract. However, if the rent is payable at monthly or longer intervals, the lessor must first notify the hirer that payment is required within a period of not less than fifteen days.

Section 561 If no written description of the condition of the property hired has been made and signed by both parties, the hirer is presumed to have received the property in a good state of repair and must return the property in that condition at the termination or extinction of the contract, unless they can prove that the property was out of repair at the time of delivery.

Section 562 The hirer is liable for any loss or damage caused to the property hired by their own fault or by the fault of persons living with them or being their subhirer. However, the hirer is not liable for loss or damage resulting from proper use of the property.

Section 563 No action by the lessor against the hirer in connection with the contract of hire can be entered later than six months after the return of the property hired.

Chapter IV

Extinction of the Contract of Hire

 

Section 564 A contract of hire is extinguished at the end of the agreed period without the need for notice.

Section 565 A hire of garden land is presumed to be made for one year. A hire of paddy land is presumed to be made for the agricultural year.

Section 566 If no period is agreed upon or presumed, either party may terminate the contract of hire at the end of each period for the payment of rent, provided that notice of at least one rent period is given, but no more than two months’ notice need be given.

Section 567 If the whole of the property hired is lost, the contract is extinguished.

Section 568 If only part of the property hired is lost without the fault of the hirer, the hirer may claim a reduction in rent proportionate to the part lost. If the remaining part of the property is insufficient for the purpose for which the hirer entered into the contract of hire, the hirer may terminate the contract.

Section 569 A contract of hire of immovable property is not extinguished by the transfer of ownership of the property hired. The transferee is entitled to the rights and is subject to the duties of the transferor towards the hirer.

Section 570 If, at the end of the agreed period, the hirer remains in possession of the property and the lessor, knowing thereof, does not object, the parties are deemed to have renewed the contract for an indefinite period.

Section 571 If a contract of hire of paddy land is terminated or extinguished after the hirer has planted the paddy, the hirer is entitled to remain in possession until the harvest is finished, but must pay rent for the period of occupancy.

 

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