How have the Thai Courts interpreted and applied Section 4 of Unfair Contract Terms Act B.E. 2540 (1997) in practice?
When the Unfair Contract Terms Act B.E. 2540 (1997) (the “Act”) came into effect it signified an important development in Thai contract law by limiting the traditional principle of freedom of contract with considerations of fairness. The Act empowers the Thai courts to review contractual provisions that confer an unreasonable advantage upon one party. Key to this Act is section 4, which creates a statutory test for identifying unfair contract terms and empowers courts to enforce such terms only to the extent that they are fair and reasonable in the circumstances. Since its enactment, section 4 has become the focal point of judicial interpretation concerning the balance between contractual autonomy and the protection of weaker contracting parties. This article examines several important judicial decisions interpreting section 4 of the Act, by detailing relevant facts, the decision of the relevant court […]
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