Understanding Their Validity and Enforceability

Introduction to Verbal Contracts

A verbal contract, also known as an oral contract, is a legally binding agreement that is not written down. Despite lacking physical documentation, these contracts contain all the standard elements of a contract and must not violate Thailand’s Criminal Code.

The absence of a written document can make verbal contracts challenging to enforce. When disputes arise, there’s no tangible record to reference. Instead, the terms must be determined through:

The Reality of Verbal Contracts in Thailand

Verbal contracts are still used in Thailand, often out of necessity or trust between parties. While it’s always advisable to have a written contract, oral agreements exist and are recognized under Thai law. Whether you’re accused of breaching a verbal contract or seeking to enforce one, the contract litigation lawyers at Closer CSS Law can provide expert assistance.

Essential Elements of a Valid Verbal Contract

For a verbal contract to be considered valid under Thai law, it must contain three crucial elements:

If any of these elements is missing, the agreement is not legally binding. Additionally, verbal contracts must comply with Thailand’s legal provisions similar to the Statute of Frauds, which prohibits oral contracts in certain circumstances.

Offer

An offer occurs when one party proposes terms to another. The terms must be clear enough for a reasonable person to understand and follow. Key terms typically include:

Acceptance

For a contract to be binding, the offer must be accepted. In verbal contracts, acceptance can be as simple as saying “Agreed,” “Let’s do it,” or even a handshake indicating that a deal has been made.

Consideration

Consideration means that both parties are exchanging something of value. In most contracts, this often involves the exchange of money for goods or services.

Enforceability of Verbal Contracts

Enforcing a verbal contract depends on the specific circumstances of each case. Key factors often include:

Thai Legal Considerations

While Thailand doesn’t have an exact equivalent to the Statute of Frauds, there are similar legal provisions that require certain types of agreements to be in writing. It’s crucial to consult with a Thai legal expert to understand which contracts must be written to be enforceable.

Oral Modifications to Written Contracts

Verbal changes to written contracts are treated similarly to verbal contracts and face the same enforcement challenges. Many written contracts include clauses requiring modifications to be in writing to avoid complications.

Unenforceable Verbal Agreements

If a verbal agreement is deemed unenforceable, you may still have recourse through equitable remedies under Thai law. These could include concepts similar to promissory estoppel, quantum meruit, or unjust enrichment.

Seek our Legal Advice

If you’re involved in a verbal contract dispute in Thailand, the contract litigation lawyers at Closer CSS Law can help. We can assist in enforcing agreement terms or demonstrating that an alleged oral contract differs from what was actually agreed upon.

Contact Closer CSS Law today for expert legal guidance on verbal contracts in Thailand.

Please feel free to call us at +66 61 645 8553 or contact us at info@closer.law. We serve clients throughout Phuket and beyond.

Our attorneys at our law firm Closer CSS Law can effectively protect these rights and help ensure against breaches in the future.