It is not as simple or safe as it may appear to enter into contracts or purchase agreements. After the buyer makes an initial deposit, the seller will present a contract of sale and/or purchase agreement. It might be in Thai or English, which they both understand. However, before signing the contract, the buyer must examine all of the information. If the contract is written in Thai and the buyer is a foreigner, the contract and any accompanying documents must have English transcripts with them. This article will discuss the importance of Contract Review in Thailand for Foreigners.
It will very certainly include a detailed description of the property, its location, the present owner or owners, the purchase date, and the terms and conditions. In contrast to other nations, a Thai contract lists only the essential documents and rights of the buyer and is thus not exhaustive. The buyer should proceed with caution and seek expert advice in analyzing the contract’s specifics before signing it.
Purpose of Contract Review
The major need for Contract Review in Thailand is as follows:
- Ensure that the sales transaction goes off without a hitch.
- Hold the authority to add, remove, or modify any applicable or desirable conditions that both parties agree to include in the contract.
- Inclusion of a contingency provision in case of future concerns, such as tax payments during the sale of a property.
- It may include conditions for completion if the construction of the property is pending, as well as fines for developmental delays.
- If the property is still under development, the contract should specify a timeline and standard for it.
To ensure that all the above points are included in your contract, Contract Review in Thailand is mandatory. This will prevent you to fall into unfavorable legal glitches afterward.
Components of Contract Review
Due diligence and astute examination are required for a thorough review of a contract. This is done to keep hazards to a minimum for an organization or individual. In order to attain this purpose, the expert legal practitioner who will analyze the contract should consider taking specific procedures. It should try to reach an agreement on the most favorable conditions for both parties. Additionally, it should try to prevent the seller’s refusal as much as feasible. It should include all parties’ and stakeholders’ identities, as well as fill in all blanks entirely, explicitly, and comprehensively state all of the parties’ and stakeholders’ rights and obligations in anticipation of future liabilities and events. These rights and obligations must be fully comprehended and comprehended. They aren’t always in the same position in the contract.
Confidentiality Provisions
There may be limiting or denying access to personal information of either or both of the parties in the agreement. However, confidentiality provisions should be explicit and open to the parties. The clauses should be legal. Despite the opposition to them, provisions for remedies must exist in the contract.
In order to restrict culpability, the review should extend to the farthest feasible adversities of all types. Especially, this is important where the other or one of the parties is unable or unwilling to give the remedy.
Risk Allocation
Risk allocation influences the management of hazards in the future. This is the obligation of the person with the greatest ability to avert loss. Moreover, one must know that including or ensuring that the provision of insurance is preventative. Clauses for seemingly harmless indemnity provisions must be handled with caution. Limit these terms as much as feasible, or include a language allowing the buyer to seek indemnification on his or her own behalf. A legal professional doing the contract review will be of great assistance in this regard. To avoid terminating a contract without cause or for the convenience or detriment of either party or side, the contract should also provide reasons for termination.
Dispute Resolution
Statements of dispute resolution in a contract must be clear and understandable. By this, everyone will save time, energy, and money by using arbitration and mediation. However, there are situations that call for legal actions. Even yet, the contract should be flexible when it comes to resolving disagreements. Always read and review all relevant papers before making any assumptions. The contract must bear signatures only of the proper signatories, or it will not be legitimate or enforceable.
Other contracts already in existence should be reviewed as a reference by a legal practitioner doing the contract review in Thailand. Using comparisons, he or she will be able to figure out what further additions or modifications does the contract needs. The contract reviewer for the seller should do the same. It is not a mandate that due diligence and efficient contract management will accomplish more than just risk reduction. It will also result in significant cost reductions, particularly for large enterprises.
Benefits of Contract Review
Aside from the usefulness, competent legal officers and law firms urge this activity for some unavoidable reasons. Top authorities may have a tight schedule or high workload to pay attention to little matters. As a result, a contract review by an expert or legal practitioner is critical to the company’s success.
By evaluating a contract before signing on it, a lawyer with experience in litigation and document management can save a lot of money and time. Failure to do so and resorting to remedies such as lawsuits can be very costly and stressful. Moreover, there is no guarantee of success.
The Bottomline
A seasoned legal practitioner with experience in due diligence on contracts will be able to see through a contract. Moreover, they will do so in a way that is more beneficial to the business than its owner’s perception. A legal practitioner with extensive contract review expertise can develop a new perspective. Moreover, such viewpoints will never restrict a businessmen’s unwavering emphasis on profit and will be more effective in obtaining it.
Making Sure You Don’t Make Any Mistakes: If the lawyer who created the business contract makes a mistake, he can be sued. However, if the business owner conducts the contract review himself, he cannot.
Expertise is lacking: Allowing an expert to review a contract for which the latter has been trained is simple and vital for business owners or buyers. Contract Review in Thailand is a mandatory requirement.
The seller’s lawyer will always prepare the contract with the seller’s best interests in mind. Only an equally skilled lawyer reviewing the contract can ensure that the deal is fair to the other party.
When buying a home or starting a business, a person should be as certain as possible about all of the terms of the contract he or she will sign. Avoiding legal counsel or service is a waste of money, and signing a contract without review is a bad option. Simply email us at [email protected] for the best legal advice and suggestions to avoid falling into any unfavorable trap.
