Contractual penalty not paid - possible consequences?

[frankfarang]

A Farang friend of mine, acting personally as individual, entered a purchase contract with a Thai company. The deal went through, he paid and received the goods. However that contract had a penalty clause - under certain circumstances, within 5 years after signing a contractual penalty of 100.000 Baht would be payable. These circumstances arose and the company is demanding payment of the penalty. Farang did not pay the contractual penalty and in the meantime does not live in Thailand anymore. What can possibly happen? So far only emails have been exchanged asking for payment. Are Thai companies going to court for such amounts? Would this be a civil case under Thai law or criminal? Will immigration have him on the list when he returns to Thailand some day?

[dezzer111]

Probably machine gun him on sight

[kulsungkham]

A Farang friend of mine, acting personally as individual, entered a purchase contract with a Thai company. The deal went through, he paid and received the goods. However that contract had a penalty clause - under certain circumstances, within 5 years after signing a contractual penalty of 100.000 Baht would be payable. These circumstances arose and the company is demanding payment of the penalty. Farang did not pay the contractual penalty and in the meantime does not live in Thailand anymore. What can possibly happen? So far only emails have been exchanged asking for payment. Are Thai companies going to court for such amounts? Would this be a civil case under Thai law or criminal? Will immigration have him on the list when he returns to Thailand some day?

It is doubtful Thai immigration would be involved as it seems to be a contractual matter between two parties and usually this is a civil matter, of course the Thai company could make a criminal complaint but what for, as yet nothing but back and forth emails have transpired. Even if it went further with the company saying they were going to take action, it would still not be a matter for immigration unless they were asked to do so by the Thai police but once again, what for, as there's no real profit in it for them; particularly as he is no longer in the country.

If he decides to return to Thailand it is very straightforward when applying for a visa to the Thai Embassy or Consulate to see if there any kind notice against him registered in the system, they are obliged to answer such an enquiry and usually in writing.

[maaka]

if its a matter of ' goods ' then usually the first port of call would be the seller takes back the goods to recover some costs..then file for recovery of the outstanding amount...the written contract itself should outline quite clearly what happens if a situation like this arises..

my daughters friend in NZ refused to pay a cabbie, and did a runner, police got involved, went to court, she did not acknowledge the sovereignty the court in any way, made no plea, but got sentenced anyway to time in prison..

the above matter could go anywhere..if he wants to return, then give the goods back and settle on a price and wipe the slate clean..its not a fortune..

[dezzer111]

Just pay up :-"

[fatbob]

No wonder Thai's are becoming short with farangs, he entered into a contract, where is his honour? He put his name on the contract so pay up, sounds like a -------- to me, another giving us all a bad name here!!!

[FrazeeDK]

well, we don't know any of the details nor what was violated in the contract or even what it was all about.. In this guy's case, if the company files a criminal complaint with the police, the fellow could end up flagged in Immigration's computers and snagged if he tries to re-enter the country... Depending upon what it was all about, the company may just write it off and that'll be the end of it...

[frankfarang]

If he decides to return to Thailand it is very straightforward when applying for a visa to the Thai Embassy or Consulate to see if there any kind notice against him registered in the system, they are obliged to answer such an enquiry and usually in writing.

That is good advise. Is any Visa application checked against the system, or does a particular application or inquiry have to be made that the system please be checked? It sounds a little bit like everyone can check beforehand whether he would run into trouble when trying to enter Thailand?

[kulsungkham]

If your applying for a visa to many countries you can enquire if there is a flag or block against you from the Embassy/Consultate before applying for a visa, if you have a copy of the details/picture page of your friend's passport you can take the photocopy to an immigration office and ask if there are any restrictions, the immigration officer may well ask why, explaining the problem truthfully usually gets a truthful answer and saves any problems developing for all parties.

[frankfarang]

you can enquire if there is a flag or block against you from the Embassy/Consultate before applying for a visa,.

I don't think this is possible, having made a few calls to Thai Embassies and Consulates in Europe.

[kulsungkham]

I'm not surprised that you got knocked back at the first hurdle via a telephone enquiry, perhaps the more direct route of making an appointment and presenting at the Embassy/Consulate might gain a better result. However, it would be better for your friend to try and work out a deal with the company he is in conflict with and thus avoid the angst of potential arrest when he enters the country.

[frankfarang]

from what I checked embassies do not offer such service. only national police headquarter does:

http://www.pcscenter.sb.police.go.th/fi ... rvice3.pdf

however the person to be checked needs to be present in Thailand