Thailand Law Library

by Thailand Lawyer

Void and Voidable Acts

A void act cannot be ratified, and its nullity may be alleged at any time by any interested person.

The return of a property arising from a void act shall be governed by the provisions on Undue Enrichment of the Code.

If any part of an act is void the whole act is void, unless it may be assumed under the circumstances of the case that the parties intended the valid part of the act to be separable from the invalid part.

If a void act complies with the requirements of another act which is not void, it is valid as the other act, if it may be assumed that such validity would have been intended by the parties, had they known of the invalidity of the intended act.

A voidable act may be avoided by:

1. The legal representative or the minor after becoming sui juris, but the avoidance can be made by the minor before his becoming sui juris if a consent has been given by his legal representative, or
2. The person adjudged incompetent or quasi-incompetent after he has recovered his capacity, or by the guardian or curator, as the case may be, but the avoidance can be made by the quasi-incompetent before recovery of his capacity if a consent thereto has been given by his curator, or
3. The person who has made the declaration of intention owning to mistake, fraud or duress, or
4. The person of unsound mind who did the voidable juristic act under Section 30 after he has recovered his capacity.

If the person who did the voidable juristic act dies before making the avoidance, it may be avoided by his heir.

When a voidable act is voided, it is deemed to have been void from the beginning; and the parties shall be restored to the condition in which they were previously, and if it is not possible to so restore them, they be indemnified with an equivalent.

If any person knew or ought to have known that an act is voidable, he, after making the avoidance, is deemed to have known that the act is void since the voidable act became known or ought to become known to him.

The claim resulting from restoring them to the previous condition under paragraph one cannot be exercised later than one year from the date of avoidance of the voidable act.

If any person entitled to avoid a voidable act under Section 175 ratifies a voidable act, it is deemed to have been valid from the beginning; but the right of third persons cannot be affected thereby.

The avoidance of/or ratification to a voidable act could be made by a declaration of intention made to the other party who is a determinate person.

A ratification is valid only if it is made after the state of facts forming the ground of voidability has ceased to exist.

When a person adjudged incompetent or quasi-incompetent or a person of unsound mind who did a voidable juristic act under Section 30 acquires knowledge of such act after he has recovered his capacity, he can ratify it only after acquiring knowledge.

The heir of the person having done the voidable juristic act can ratify such act after the death of such person unless the right to avoid the voidable juristic act of the deceased has extinguished.

The provisions of paragraph one and paragraph two shall not apply to a ratification to the voidable juristic act made by the legal representative, guardian or curator.

If after the time when ratification according to Section 179 could be made, any of the following facts takes place in regard to a voidable act by an act of the person entitled to avoid the voidable act under Section 175, it is deemed to be ratified, unless a reservation is expresses, such as:

1. The obligation has been fully or partially performed.
2. The performance of the obligation has been demanded.
3. A novation (substitution of a new obligation for an old one) of the obligation has been effected.
4. Security has given for the obligation.
5. The whole or part of the right or liability has been transferred.
6. Any other acts done which indicate the ratification.

A voidable act cannot be voided later than one year from the time when ratification could have been made, or later than ten years since the act was done.

Conditions and Time

A clause which subordinates the effect or the end of the effect of a juristic act to a future and uncertain event, is considered a condition.

A juristic act subject to a condition precedent takes effect when the condition is fulfilled.

A juristic act subject to a condition subsequent ceases to have effect when the condition in fulfilled.

If the parties to the act have declared an intention that the effect of the fulfillment of a condition shall relate back to a time before it was fulfilled, such intention is to govern.

Any party to a juristic act subject to a condition must not, while the condition is pending, do anything by which the benefit which the other party might derive from the fulfillment of the condition impaired.

The rights and duties which the parties have, while the condition is pending, may be disposed of, inherited, protected or secured according to law.

If the fulfillment of a condition is prevented not in good faith by the party to whose disadvantage it would operate, the condition is deemed to have been fulfilled.

If the fulfillment of a condition is brought about in bad faith by the party to whose advantage it would operate, the condition is deemed not to have been fulfilled.

When the condition is already fulfilled at the time of the juristic act, the latter is unconditionally valid, if the condition is precedent, and is void, if the condition is subsequent.

When it is already certain at the time of the juristic act that the condition cannot be fulfilled, the act is void, if the condition is precedent, and unconditional valid, if the condition is subsequent.

The parties still have rights and duties according to Section 184 and Section 185 so long as they do not know whether the condition is fulfilled under paragraph one or cannot be fulfilled under paragraph two.

A juristic act is void if it is subject to an unlawful condition, or a condition contrary to public order or good morals.

A juristic act upon a condition precedent which is impossible is void.

A juristic act upon a condition subsequent which is impossible is unconditionally valid.

A juristic act upon a condition precedent which depends upon the will of the debtor is void

If a time of commencement is annexed to a juristic act, its performance cannot demanded before such time arrives.

If a time of ending is annexed to a juristic act, its effect ceases when such time arrives.

It is presumed that a time of commencement or ending is fixed for the benefit of the debtor, unless it appears from the tenor of the instrument or from the circumstances of the case that it was intended for the benefit of the creditor, or of both parties.

The benefit of such a time may be waived, but this will not affect any benefit which would accrue there from to the other party.

In the following cases the debtor cannot take advantage of a time of commencement or ending:

1. If he has been ordered by the Court to place his assets under final custody and control according to the law on bankruptcy.
2. If he has not given security when he was bound to give it.
3. If he has destroyed or diminished any security given.
4. If the debtor has produced as security a property of other person without the latter's consent.

Periods of Time

The manner of computing all periods of time is governed by the provisions of this Title, unless it is otherwise provided by law, by juridical order, by rules and regulations or by a juristic act.

A period of time is calculated by day. But if it is determined shorter than a day, it shall calculated as such.

If the period of time is determined shorter than a day, it begins to run at once.

When a period of time is determined days, weeks, months or years, the first day of the period is not included in the calculation, unless the period begins to run on that day from the time which is customary to commence business.

As far as the legal proceedings, official business or commercial and industrial business are concerned, a day means working hours determined by law, by a judicial order or by rules and regulations, or usual working hours of that business, as the case may be.

If the period is not computed from the beginning of a week, month or year, it ends on the day preceding that day of the last week, month or year which corresponds to that on which it began. If a period measured in months or years there is no corresponding day in the last month, the last day of such month shall be the day of ending.

If a period of time is determined in months and days, or in months and a part of a month, a full month shall be first measured and then a number of days or a part of a month measured in days.

If a period of time is determined in a part of a year, the part of a year shall be first measured in months and a part of a month, if any, shall be measured in days.

In calculating a part of a month under paragraph one and paragraph two, thirty days is regarded one month.

If a period of time is extended and no beginning day of the extension is determined, the first day of the extension is the day following the last day of the original period.

If the last day of a period is a holiday according to an official notification or a custom on which no business is done, the period includes the next working day.