Thailand Civil and Commercial Code Sections-572-607

Title V

 Hire-Purchase

Section 572 A hire-purchase is a contract whereby the owner of a property lets it out on hire and promises to sell it to, or that it shall become the property of, the hirer, conditioned on the hirer making a certain number of payments. The contract of hire-purchase is void unless made in writing.

Section 573 The hirer may at any time terminate the contract by redelivering the property at their own expense to the owner.

Section 574 The owner may also terminate the contract in case of default of two successive payments or breach of any material part of the contract, in which case all previous payments are forfeited to the owner, who is entitled to resume possession of the property. In the case of breach of contract due to the default of the last payment, the owner is entitled to forfeit previous payments and resume possession of the property only after the expiration of one installment period.

Title VI

Hire of Services

Section 575 A hire of services is a contract whereby a person, called the employee, agrees to render services to another person, called the employer, who agrees to pay remuneration for the duration of the services.

Section 576 The promise to pay remuneration is implied if, under the circumstances, it cannot be expected that the services are to be rendered gratuitously.

Section 577 The employer may transfer their rights to a third person with the consent of the employee. The employee may have a third person render the services in their place with the consent of the employer. If either party acts contrary to this provision, the other party may terminate the contract.

Section 578 If the employee either expressly or impliedly warrants special skill on their part, the absence of such skill entitles the employer to terminate the contract.

Section 579 Absence of the employee from service for a reasonable cause and during a reasonably short period does not entitle the employer to terminate the contract.

Section 580 If no time for the payment of remuneration is fixed by the contract or by custom, the remuneration is payable after the services have been rendered; if fixed by periods, the remuneration is payable at the end of each period.

Section 581 If, after the end of the agreed period, the employee continues to render services and the employer, knowing thereof, does not object, the parties are presumed to have made a new contract of hire on the same terms, but either party can terminate the contract by giving notice in accordance with the following section.

Section 582 If the parties have not fixed the duration of the contract, either party can terminate it by giving notice at or before any time of payment to take effect at the following time of payment. However, no more than three months’ notice need be given.

Section 582 The employer can, by giving such notice, immediately dispense with the services of the employee by paying them their remuneration up to the expiration of the notice period.

Section 583 If the employee willfully disobeys or habitually neglects the lawful commands of their employer, absents themselves from service, is guilty of gross misconduct, or otherwise acts in a manner incompatible with the due and faithful discharge of their duties, they may be dismissed by the employer without notice or compensation.

Section 584 If a hire of services is one in which the personality of the employer is an essential part of the contract, such a contract is extinguished by the death of the employer.

Section 585 If the hire of services comes to an end, the employee is entitled to a certificate stating the length and nature of their services.

Section 586 If the employee has been brought from elsewhere at the expense of the employer, the employer is bound, when the hire of services comes to an end, to pay the cost of the return journey unless otherwise provided in the contract, provided that:

1. The contract has not been terminated or extinguished due to the act or fault of the employee, and
2. The employee returns within a reasonable time to the place from which they were brought.

Title VII

Hire of Work

Section 587 The hire of work is a contract whereby a person, called the contractor, agrees to accomplish a definite work for another person, called the employer, who agrees to pay them remuneration for the result of the work.

Section 588 Tools or instruments necessary for the execution of the work are to be supplied by the contractor.

Section 589 If the materials for the work are to be supplied by the contractor, the contractor must supply materials of good quality.

Section 590 If the materials are to be supplied by the employer, the contractor shall use them carefully and without waste. The contractor must return any surplus materials after the work is completed.

Section 591 If a defect or delay in the work originates from the nature of the material supplied by the employer or from instructions given by the employer, the contractor is not liable unless the contractor knew of the unfitness of the materials or the impropriety of the instructions and failed to give notice of it.

Section 592 The contractor is bound to allow the employer or their agents to inspect the work during its execution.

Section 593 If the contractor does not begin the work in a proper time or delays in proceeding with it contrary to the terms of the contract, or if, without fault of the employer, the contractor delays to proceed in a manner that it can be foreseen that the work will not be finished within the agreed period, the employer is entitled to cancel the contract without waiting for the time agreed upon for delivery.

Section 594 When it becomes certain, while the work is proceeding, that the work will be executed in a defective manner or contrary to the terms of the contract due to the fault of the contractor, the employer may notify the contractor to rectify the defect or comply with the terms of the contract within a reasonable time specified in the notice. If the contractor fails to comply, the employer is entitled to have the work repaired or completed by a third person at the contractor’s risk and expense.

Section 595 If the materials have been supplied by the contractor, their liability for defects is governed by the provisions of this Code concerning the sale.

Section 596 If the work is delivered after the time fixed in the contract, or if no time was fixed, after a reasonable time has elapsed, the employer is entitled to a reduction of remuneration, or if time is of the essence of the contract, to rescission.

Section 597 If the employer has accepted the work without reservation, the contractor is not liable for the delay in delivery.

Section 598 If the employer has accepted defective work, either expressly or impliedly, the contractor is not liable unless the defect was such that could not be discovered at the time of acceptance or had been concealed by the contractor.

Section 599 In the case of delay in delivery or delivery of defective work, the employer is entitled to withhold the remuneration unless the contractor provides proper security.

Section 600 Unless otherwise provided in the contract, the contractor is only liable for defects appearing within one year after the delivery of the work, or within five years if the work is for a structure on land other than a wooden building. This limitation does not apply if the contractor has concealed the defect.

Section 601 No action against the contractor can be entered later than one year after the defect appeared.

Section 602 The remuneration is payable upon taking delivery of the work. If the work is to be accepted in parts and the remuneration has been specified for each part, the remuneration for each part is payable at the time of its acceptance.

Section 603 If the materials have been supplied by the contractor and the work is destroyed or damaged before due delivery, the contractor bears the loss, provided that such loss is not caused by any act of the employer. In such a case, no remuneration is payable.

Section 604 If the materials have been supplied by the employer and the work is destroyed or damaged before due delivery, the employer bears the loss, provided that such loss is caused by any act of the contractor.

Section 605 In such a case, no remuneration is payable unless the loss is caused by any act of the employer.

Section 606 As long as the work is not finished, the employer can terminate the contract by compensating the contractor for any injury resulting from the termination of the contract.

Section 607 If the personal qualifications of the contractor are essential to the contract and the contractor dies or, without fault, becomes incapable of continuing the work, the contract comes to an end. If any part of the work already done is useful to the employer, the employer is bound to accept it and pay reasonable remuneration for it.

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