Thailand Civil and Commercial Code Sections-845-897
TITLE XVI
BROKERAGE
Section 845 A person who agrees to pay remuneration to a broker for indicating the opportunity for the conclusion of a contract, or for procuring a contract, is liable to pay the remuneration only if the contract is concluded as a consequence of the indication or procurement by the broker. If the contract is concluded subject to a condition precedent, the broker’s remuneration may not be claimed until the condition is fulfilled. The broker is entitled to be reimbursed for expenses incurred only if it has been agreed upon. This applies even if a contract is not concluded.
Section 846 A broker’s remuneration is deemed to have been impliedly agreed upon if the business entrusted to the broker is, under the circumstances, only to be expected for remuneration. If the amount of the remuneration is not fixed, the usual remuneration is deemed to have been agreed upon.
Section 847 A broker is not entitled to remuneration or to reimbursement of his expenses if, contrary to his engagement, he has acted also for a third party or has been promised by such a third party a remuneration which is not consistent with the broker acting in good faith.
Section 848 A broker is not personally liable for the performance of the contracts entered into through his mediation, unless he has not communicated the name of a party to the other party.
Section 849 A broker is presumed to have no authority to receive on behalf of the parties payments or other performances due under the contract.
TITLE XVII
COMPROMISE
Section 850 A compromise is a contract whereby the parties settle a dispute, whether actual or contemplated, by mutual concessions.
Section 851 A contract of compromise is not enforceable by action unless there is some written evidence signed by the party liable or his agent.
Section 852 The effect of the compromise is to extinguish the claims abandoned by each party and to secure to each party the rights which are declared to belong to him.
TITLE XVIII
GAMBLING AND BETTING
Section 853 No obligation is created by gambling or betting. What has been given by reason of gambling or betting may not be demanded back on the ground that no obligation existed. These provisions also apply to an agreement whereby the losing party, for the purpose of satisfying a gambling debt or a bet, incurs an obligation towards the other party.
Section 854 A lottery contract or a raffle contract is binding if the lottery or raffle is specially authorized or ratified by the Government. In all other cases, the provisions of this Title shall apply.
Section 855 Subject to the provisions of Sections 312 and 916, every bill or other instrument given in whole or in part for any money won by gambling or betting, or for repaying money lent for such gambling or betting, shall be invalid. For the purpose of this provision, any money lent to a person while gambling or betting is presumed to have been lent for such gambling or betting.
TITLE XIX
CURRENT ACCOUNT
Section 856 A contract of current account is one in which two persons agree that henceforth, or for a determinate period, the amounts of all or only some of the obligations arising from transactions between them shall be set off, and that only the balance shall be paid.
Section 857 The entry of a bill in a current account is presumed to be made on the condition that the bill will be paid. If the bill is not paid, the entry may be canceled.
Section 858 If the parties have not fixed the period for striking the balance, such period shall be six months.
Section 859 In the absence of any indication to the contrary, either party may, at any time, terminate the contract of current account and have the balance struck.
Section 860 The difference, if not paid, bears interest from the day when the balance was struck.
TITLE XX
INSURANCE
CHAPTER I
GENERAL PROVISIONS
Section 861 A contract of insurance is one in which a person agrees to make compensation or to pay a sum of money in the case of a contingent loss or any other future event specified in the contract, and another person agrees to pay therefor a sum of money, called the premium.
Section 862 According to the message of this nature:
The term “insurer” means the contracting party that agrees to pay compensation or to provide a certain amount of money in the event of a specified loss or other future event.
The term “insured person” refers to the contracting party that agrees to pay premiums for the insurance coverage.
The term “beneficiary” refers to the person who will receive compensation or the specified amount from the insurance policy.
Moreover, the insured person and the beneficiary may be the same person.
Section 863 An insurance contract is void if the insured does not have an insurable interest in the event being insured.
Section 864 If the risks or hazards taken into account when calculating the insurance premium are no longer present, the insured may request a proportional reduction of the premium.
Section 865 If, at the time of making the insurance contract, the insured is in good health or, in the case of life insurance, if the person whose livelihood or death the insurance covers is in good health, and if the insured is aware of this but fails to disclose this information, which might influence the insurer to demand higher premiums or to refuse to enter into the contract, the contract shall be void.
If the right to cancel the contract is not exercised within one month from the date the insurer becomes aware of the grounds for cancellation, or if it is not exercised within five years from the date of making the contract, this right shall be extinguished.
Section 866 If the insurer knew or should have known, with reasonable diligence, that the statement mentioned in Section 865 was true or false, the contract shall be deemed valid.
Section 867 An insurance contract must be in writing and signed by the liable party or their representative. Without such written evidence, the contract cannot be enforced in court.
The insurance policy, which contains the contents of the contract, must be delivered to the insured.
The insurance policy must be signed by the insurer and include the following items:
- Object of Insurance
- Risks Covered by the Insurer
- Insurance Premium (if it is specified)
- Amount Insured
- Insurance Premium Amount and the method of payment
- Insurance Policy Term (start and end dates, if applicable)
- Name of the Insurer
- Name of the Insured
- Name of the Beneficiary, if applicable
- Date of the Insurance Contract
- Place and Date of Issuance of the Insurance Policy
Section 868 In a marine insurance contract, the provisions of maritime law shall apply.
CHAPTER II
INSURANCE AGAINST LOSS
PART I
DENERAL PROVISTIONS
Section 869 In this section, the term “casualty” includes any kind of damage that can be quantified as a loss.
Section 870 If two or more insurance contracts are made simultaneously for the same casualty, and the total amount insured exceeds the actual amount of the loss, the beneficiary is entitled to receive compensation only up to the actual amount of the loss. Each insurer must contribute to the payment of the loss in proportion to the amount they are liable for.
If all insurance contracts are made on the same day, they are considered to have been made simultaneously.
If two or more insurance contracts are made consecutively, the first insurer must cover the casualty first. If the compensation provided by the first insurer is insufficient to cover the entire loss, the subsequent insurers must cover the remaining portion of the loss in the order in which the contracts were made.
Section 871 If two or more insurance contracts are entered into at the same time, or in succession, the insured may choose to waive their rights under one of the insurance contracts. Such a waiver does not affect the rights and obligations of the other insurers.
Section 872 Before the insurance coverage begins, the insured may terminate the contract. However, the insurer is entitled to retain a proportionate amount of the premium.
Section 873 If, during the period of the insurance contract, the insured value has significantly diminished, the insured may request a reduction in the insured amount and a corresponding reduction in the insurance premium.
The reduction in the insurance premium will only take effect from the future date of the request.
Section 874 If the contracting party has determined the insurance premium, the insurer may reduce the amount of compensation only if it is proven that the agreed-upon premium is too high. In such a case, the insurer must return a portion of the premium amount proportional to the reduction in coverage.
Section 875 If the insured object is transferred from the insured to another person by will or by operation of law, the rights under the insurance contract shall also be transferred to the new owner.
If the insurance contract does not specify otherwise, when the insured transfers the insured object and notifies the insurer of the transfer, the rights under the insurance contract shall also be transferred to the new owner. However, if the transfer significantly changes or increases the risk, the insurance contract shall become void.
Section 876 If the insurer is adjudged bankrupt, the insured may request that suitable insurance be obtained for them or terminate the contract.
If the insured is adjudged bankrupt, they must use the same method to seek an appropriate resolution for the matter. However, if the premium has been paid in full for the entire duration of the insurance, the insurer may not terminate the contract before that period has expired.
Section 877 The insurer is required to pay compensation as follows:
- For the actual amount of the loss or damage incurred.
- For damage caused to insured property if reasonable measures have been taken to prevent further damage.
- For all reasonable expenses incurred to preserve the insured property from destruction.
The amount of the loss must be assessed at the place and time when the damage occurred. Furthermore, the insured amount is presumed to be the correct estimate for such valuation.
Compensation may not exceed the insured amount.
Section 878 Expenses for valuing the casualty must be borne by the insurer.
Section 879 The insurer is not liable when the casualty or other event specified in the contract occurs due to the dishonesty or gross negligence of the insured or beneficiary.
The insurer is not liable for a casualty that is a direct result of the malfunction of the insured object, unless otherwise agreed upon.
Section 880 If the disaster occurred because of the actions of third parties, the insurer assumes the rights of the insured and the beneficiary only to the extent of the compensation paid.
If the insurer has paid only part of the compensation, the insurer is prohibited from using its rights to harm the rights of the insured or beneficiary in order to claim compensation from a third party for only a portion of the loss.
Section 881 If the disaster occurs due to a risk covered by the insurance, the insured or beneficiary must notify the insurer without delay upon becoming aware of the disaster.
If the provisions mentioned in the preceding paragraph are not complied with, the insurer may claim compensation for any damage resulting therefrom, unless the other party proves that it was unable to perform the notification due to circumstances beyond its control.
Section 882 In demanding compensation, you are prohibited from filing a lawsuit after a period of two years has elapsed from the date of the disaster.
To demand the use or return of insurance premiums, you are prohibited from filing a lawsuit after two years have elapsed from the date on which the right to demand the use or return of the insurance premium became due.
PART II
SPACIAL RULES FOR INSURANCE ON CARRIAGE
Section 883 The insurance contract for carriage covers all losses that may occur to the transported goods during the period from when the carrier receives the goods until the goods are delivered to the consignee. The amount of compensation is determined based on the value of the goods being transported at the destination where they are to be delivered.
Section 884 If the goods being transported are insured while they are on their way to you, the insurance value of the goods shall be calculated as the price of the goods at the place and time the carrier receives them, plus the freight to the delivery location and all other expenses related to the shipment.
Profit that will be earned at the time of delivery of the goods may be included in the insurance value only if there is a clear agreement to do so.
Section 885 of the insurance contract pertains to the carriage, even if transportation must be interrupted temporarily, or the route or method of transportation changed due to necessity during the journey. It states that the contract remains valid unless otherwise specified.
Section 886 details the insurance policy for carriage. In addition to what has been specified in Section 867, additional requirements include:
- Specification of routes and means of transportation.
- Name or brand of the carrier.
- Designated places for receiving and delivering goods.
- Determination of available transportation time.
PART III
DUARANTEE INSURANCE
Section 887 concerns insurance guarantees, where the insurer agrees to compensate on behalf of the insured for damages caused to another person, for which the insured is liable.
The injured party is entitled to receive compensation directly from the insurer, not exceeding the amount specified in the contract. In a dispute between the injured party and the insurer, the insurer may involve the insured in the case.
Furthermore, even if the insurer has already compensated the insured, they cannot evade liability towards the injured party unless they can prove that the insured has paid compensation to the injured party.
Section 888 states that if the compensation paid by the insurer through a judgment does not cover the full amount of the loss, the insured is still liable for the remaining amount. This is unless the injured party neglected to summon the insured into the case, as mentioned in the previous section.
CHAPTER III
INSURANCE ON LIFE
Section 889 In the life insurance contract the use of an amount depends on the life or death of a person.
Section 890 specifies that the payment amount can be made in a single sum or as annual payments, depending on the agreement between the contracting parties.
Section 891 states that even if the insured is not the beneficiary, they have the right to transfer the benefits of the contract to another person, unless the insurance policy has already been assigned to the beneficiary and the beneficiary has notified the insurer in writing of their intention to claim under the contract.
If the insurance policy has been assigned for use as specified, the provisions of Section 309 shall apply.
Section 892 specifies that in the event of the annulment of the contract under Section 865, the insurer must return the redemption value of the insurance policy to the insured or their heirs.
Section 893 The payout depends on whether a person is alive or deceased. Even if the person’s age was incorrectly stated, resulting in the insurance premium being set too low, the insurer reduces the payout proportionately.
However, if the insurer proves that at the time of contract formation, the actual correct age was outside the bounds of their normal commercial rates, the contract is considered void.
Section 894 states that the insured is free to terminate the insurance contract at any time by ceasing to send further premiums. If premiums have been paid for at least three years, the insured may request to receive the surrender value of the insurance policy or utilize the funds provided by the insurance provider.
Section 895 When must an amount be paid upon the death of any person? The insurer is obligated to use that money upon the occurrence of death, unless:
(1) the person voluntarily commits suicide within one year from the date of contract inception, or
(2) the person is intentionally killed by the beneficiary.
In the latter case, the insurer must pay the policy’s redemption value to either the insured or the heirs of the deceased person.
Section 896 If the death occurred due to the fault of a third party, the insurer cannot claim compensation from that third party. However, the right of the deceased’s heirs to receive compensation from third parties is not forfeited. They will still receive the entire amount specified in the life insurance contract.
Section 897 If the insured has taken out insurance specifying that upon their death, the money should be given to their heirs without specifying individual names, the amount to be paid must be treated as part of the insured’s estate assets, which creditors can use to repay debts.
If the insurance specifies that the money should be paid to a specific person, only the premiums already paid by the insured will be considered part of the insured’s estate assets, available for creditors to repay debts.
Thailand Child Abduction Attorneys
| <<< Previous Page — Next Page >>> |
| Back to Main Index |
