E-sign Laws: Thailand

Part 8: Signing in to the digital age

Known as the “Land of Smiles”, Thailand’s tourism industry has been booming. On top of this, Thailand has been a regional leader in agriculture, automotive, and electronics. 

Business in Thailand is lucrative and promises a strong and resilient tourism industry that can be boosted even more by international business activities. 

Thailand’s growing global presence in other sectors of the economy provide plenty of opportunities for growth in the nation. In terms of e-signatures, it’s important to know where the law stands when you’re signing on the dotted line in Thailand. 

Read on to learn more about the legal compliance for electronic signatures in Thailand specifically and watch out for more in this series on Southeast Asia, Hong Kong, China, New Zealand, Australia, UK, Cayman Islands, and BVI.

The Legal Model

Thailand has an Electronic Signature Act and adopts a tiered legal model. 

The Rules

Under Thai law, a written signature is not necessarily required for a valid contract – contracts are generally valid if legally competent parties reach an agreement, whether they agree verbally, electronically or in a physical paper document (Sections 7, 9, 13 of the E-Transactions Act). 

The E-Transactions Act specifically confirms that contracts cannot be denied enforceability merely because they are concluded electronically.

Applicability of an Electronic Signature 

To prove a valid contract, parties sometimes have to present evidence in court. In the absence of a QES, leading digital transaction management solutions can provide electronic records that are admissible in evidence under Section 11 of the E-Transactions Act, to support the existence, authenticity and valid acceptance of a contract.

Enter business in the Land of Smiles with an ease of mind by understanding the above legal requirements for electronic signatures. 

Use Cases for E-sign

Instances where e-signatures are generally considered appropriate:

• consumer agreements, including invoices, purchase orders, order confirmations, sales terms, services terms, policies, shipment documentation, and user manuals
• HR Documents, such as regular employment contracts, NDAs, privacy notices, employee invention agreements benefits paperwork and other new employee onboarding processes
• real estate documents including leases
• commercial agreements between corporate entities, including invoices, sales agreements, distribution agreements, service agreements, NDAs, and purchase orders
  Use Cases Requiring a Physical Signature There are some cases where a handwritten or wet ink signature will be necessary. Examples include:
• mortgages
• immovable property contracts
• sale of ships contracts of five tons and over
• certain family law documents, ie. those pertaining to marriage, adoption, and succession
•  securitisation documents 

This article does not constitute legal advice.

The opinions expressed in the column above represent the author’s own.

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Read more from the E-Signature Series:

Part 6: Indonesia

Part 5: Macau

Part 4: China

Part 3: Japan

Part 2: Singapore

Part 1: Hong Kong

READ MORE: Is e-signing legally binding? 

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This article does not constitute legal advice.

The opinions expressed in the column above represent the author’s own.

Start managing your legal needs with Zegal today

READ MORE: Is e-signing legally binding? 

EBOOK: E-signatures