Section Code: 0820 - 0825

Thai Civil and Commercial Code


Chapter 4: Liability of Principal and Agent to Third Persons

Section 820. Principal is bound by acts of the Agent

The principal is bound to third persons by the acts which the agent or the subagent has done within the scope of his authority by virtue of his agency.

Section 821. Agent is liable to third person

A person who holds out another person as his agent or knowingly allows another person to hold himself out as his agent, is liable to third persons in good faith in the same way as such person was his agent.

Section 822. Agent who acts beyond Authority – effect on 3rd Party

If an agent does an act in excess of his authority, but the third person has reasonable grounds, arising from the act of the principal, to believe that it was within his authority, the provisions of the foregoing section apply correspondingly.

Section 823. Agent Acting without Authority Does not Bind Principal

If an agent does an act without authority or beyond the scope of his authority, such act does not bind the principal unless he ratifies it.

If the principal does not ratify, the agent is personally liable to third persons, unless he proves that such third persons knew he was acting without authority or beyond the scope of the authority.

Section 824. Agent Liability for Contracts

If an agent makes a contract on behalf of a principal, who is living outside the country, is liable on the contract albeit the name of the principal has been mentioned on the contract.

The agent is not liable if the terms of the contract are inconsistent with his liability.

Section 825. Principal not bound by contract done by his agent unless he has given his consent.