Section Code: 0898 - 0907

Thai Civil and Commercial Code

SPECIFIC CONTRACTS
TITLE XXI
BILLS

Chapter 1: General Provisions

Section 898. Bills

Bills, within the meaning of this Code, are of three kinds, namely: bills of exchange, promissory notes and checks.

Section 899. Not a Bill

If matters not provided for in this Title are inserted in a bill, they have no effect under the bill.

Section 900. Signature required

A person who puts his signature upon a bill is liable thereon according to the tenor of such bill.

A mere mark, such as a cross or a finger-print purporting to be a signature on a bill, even if certified by witnesses, produces no specific effect under the bill.

Section 901. Notice required if acting on behalf of another

If a person puts his signature upon a bill without stating that he is acting on behalf of another person, he is personally liable upon the bill.

Section 902. Signature of Incapacitated Person

If a bill bears the signatures of persons who cannot at all, or with full effect, become parties to a bill, this does not affect the liability of the remaining persons liable on the bill.

Section 903. No Grace Period

No days of grace are allowed for the payment of a bill.

Section 904. Holder

Holder means a person who is in possession of a bill as a payee or endorsee, or the bearer if the bill is payable to bearer.

Section 905. Chain of Endorsements

Subject to the provisions of Section 1008 the possessor of a bill is deemed to be the lawful holder if he shows his title through an uninterrupted series of endorsement, even if the last endorsement is in blank. When an endorsement is blank is followed by another indorsement, the person who signed this last endorsement is deemed to have acquired the bill by the endorsement in blank. Cancelled endorsements are deemed to be non-existent.

Where a person has been dispossessed of a bill, the holder who shows his right thereto in the manner mentioned in the foregoing paragraph is not bound to give up the bill unless he has acquired it in bad faith, or unless in acquiring it he has been guilty of gross negligence.

The foregoing paragraph applies also to the holder of a bill payable to bearer.

Section 906. Prior Parties

The expression “prior parties” includes the drawer or maker of the bill and the prior endorsers.

Section 907. Allonge

When there is no room on a bill for further endorsement, a slip of paper, called an allonge, may be attached thereto. It becomes part of the bill.

The first indorsement on the allonge must be written partly on the bill itself and partly on the allonge.

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