Thailand Law Library

by Thailand Lawyer

Chapter 1: Arbitration Agreement

Arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. The arbitration agreement shall be in writhing and signed by the parties. An arbitration clause constitutes an arbitration agreement if it is contained in an exchange between the parties by means of letters, facsimiles, telegrams, telex, data interchange with electronic signature, or other means which provide a record of the agreements, or in an exchange of statement of claim and defense in which the existence of an agreement is alleged by one party and not denied by the other.

The references in a contract evidenced in writing to any document containing an arbitration clause constitutes an arbitration agreement, provided that the reference is such as to make that clause part of the contract.

The validity of the arbitration agreement and the appointment of arbitrator shall not be prejudiced, even if any party thereto is dead, or ceases to be a juristic person, or against whom a final receiving order has been issued against his property, or has been adjudged incompetent or quasi-incompetent.

When there is a transfer of any claim or liability, the transferee shall be bound by the arbitration agreement concerning such claim or liability.

In case where any party to the arbitration agreement commences any legal proceedings in court against the other party thereto in respect of any dispute which is the subject of the arbitration agreement, the party against whom the legal proceedings are commenced may file with the competent court, no later than the date of filing the statement of defense or within the period for filing the statement of defense in accordance with the law, a motion requesting the court to issue an order striking the case, so that the parties may proceed with the arbitral proceedings. Upon the court having completed the inquiry and found that there are no grounds for rendering the arbitration agreement void or unenforceable or impossible to perform, the court shall issue an order striking the case.

While the motion filed in accordance with paragraph one is pending before the court, either party may commence the arbitral proceedings, or the arbitral tribunal may continue the proceedings and render an award on the dispute.

In any contract made between a government agency and a private enterprise, regardless of whether it is an administrative contract or not, the parties may agree to settle any dispute by arbitration. Such arbitration agreement shall bind the parties.

A party to an arbitration agreement may file a motion requesting the competent court to issue an order imposing provisional measures to protect his interest before or during the arbitral proceedings. If the court views that had such proceedings been conducted in court, the court would have been able to issue such order, the court may proceed as requested. The provisions governing provisional measures under the Civil Procedure Code shall apply mutatis mutandis.