THAILAND Law and Practice Contributed by: Olaf Duensing, Jerrold Kippen and Weeraya Kippen, Duensing Kippen, Ltd.
The length of the proceedings varies from case to case. 6.22 Termination by a Third Party A lease can be terminated by a government entity. Under the Expropriation and Acquisition of Immovable Property Act (2019), subject to certain requirements, government entities can expropriate immovable property for the purposes of public utilities, military, natural resources or for any other benefits of the public including town planning, environmental preservation, agricul - tural development, land reform, historical sites preservation, special economic zones develop - ment and industrial purposes. The Act provides the government entities with the absolute and unilateral right to exercise this power, and the expropriated property owners must comply with any expropriation order. Any existing lease agreement over the expropriated property will be terminated due to the expropriation. However, both the landlord and the tenant will be entitled to receive compensation from the government entities as provided by the Act. The length of the proceedings varies from case to case. 6.23 Remedies/Damages for Breach For a landlord not in breach of contract, the remedies that a landlord may pursue include seeking compensation and pursuing specific performance of the agreement. Additionally, injunctive relief may be sought to prevent actions that obstruct contractual duties or exacerbate harm to the non-breaching party, or to enforce compliance with contractual obligations. Damages claims are generally confined to those resulting from the non-performance. However,
the non-breaching party may demand damages stemming from special circumstances if they were foreseeable. Court intervention may adjust contractual damages if deemed excessive. A security deposit is usually held to protect the landlord should the tenant fail to meet its obli- gations. In addition, the landlord might require the tenant to provide a guarantor for the per - formance of the tenant’s obligations. Under certain conditions, the security deposit cannot legally exceed one-month’s rent. The form of the deposit is negotiable between the parties. 7. Construction 7.1 Common Structures Used to Price Construction Projects The following are the most common structures used to price construction projects. • Fixed price contract – a lump sum is paid for the completion of the work. The business risk lies with the contractor. • Cost plus contract – payment of actual expenses and costs on a reimbursable basis, plus percentage or fixed fee. The employer bears the risk. 7.2 Assigning Responsibility for the Design and Construction of a Project The liability for the design and build depends on the contractual arrangements of the parties. If the contractor in a design-build contractual rela - tionship assumes the responsibility for the whole project, such contractor will be the sole respon - sible party. However, if the owner employs dif - ferent entities in a design-tender approach, the design and construction will be performed by different parties. In that case, the responsibil -
1018 CHAMBERS.COM
Powered by FlippingBook