When entering into a contractual agreement, it is important to consider the laws that will govern the agreement. This is where the phrase “this agreement shall be governed by the laws of Thailand” comes in. In this article, we will discuss what this phrase means and how it affects a contractual agreement.
What does “this agreement shall be governed by the laws of Thailand” mean?
When parties enter into a contractual agreement, they often specify which country`s laws will govern the agreement. This means that in the event of a dispute or legal issue, the laws of the specified country will be applied to the agreement.
By stating that “this agreement shall be governed by the laws of Thailand”, the parties are agreeing that Thai law will be applied to their agreement. This means that any disputes or legal issues that arise will be resolved in accordance with Thai law.
How does this affect a contractual agreement?
When a contractual agreement is governed by the laws of Thailand, it means that the agreement will be subject to Thai legal principles and laws. This includes the Thai Civil and Commercial Code, which governs the formation and enforcement of contracts.
It is important to note that Thai law may differ from the laws of other countries. This means that the parties involved in the contractual agreement should be aware of the legal implications of their agreement under Thai law.
For example, Thai law may have different rules regarding the interpretation of contracts and the remedies available in the event of a breach of contract. Additionally, certain provisions that may be enforceable in other countries may not be recognized under Thai law.
What are the benefits of specifying that “this agreement shall be governed by the laws of Thailand”?
There are several benefits to specifying that “this agreement shall be governed by the laws of Thailand”. These include:
1. Certainty: By specifying which country`s laws will govern the agreement, the parties can avoid uncertainty and confusion in the event of a legal dispute.
2. Local expertise: If one of the parties is based in Thailand, specifying Thai law as the governing law can give that party an advantage in the event of a legal dispute.
3. Compliance with local laws: Specifying that “this agreement shall be governed by the laws of Thailand” ensures that the agreement complies with Thai legal requirements.
Conclusion
In conclusion, specifying that “this agreement shall be governed by the laws of Thailand” is an important clause to include in any contractual agreement that involves parties based in Thailand. It is important to understand the legal implications of this clause and to ensure that the agreement complies with Thai legal requirements. By doing so, the parties can avoid uncertainty and confusion in the event of a legal dispute.