Bangkok Legal Service

Partial Termination of a Reciprocal Construction Contract and Continuing Rights Over Completed Works

This agreement between Mr. Sak and Mr. Padjia constitutes a reciprocal (bilateral) contract, whereby each party assumes corresponding obligations in exchange for performance by the other party.

Mr. Sak exercised his right of termination solely in respect of the portion of the contract concerning the construction works that Mr. Padjia failed to complete within the agreed timeframe. Such termination is therefore partial in nature and does not affect the remaining portions of the contract that have been duly performed.

With respect to the building constructed by Mr. Grajeh, the construction has been fully completed in accordance with the contractual specifications and within the agreed conditions. As such, this portion of the contract remains valid and enforceable. Consequently, Mr. Grajeh retains the lawful right to utilize the completed building and to lease the premises to third parties, provided that such use does not contravene any express terms of the contract or applicable law.

Accordingly, the termination declared by Mr. Sak is limited strictly to the unperformed portion of the construction obligation and does not invalidate rights arising from parts of the contract that have already been properly fulfilled.