Bangkok Legal Service

Compensation Dispute Arising From Breach of Sale Agreement

Legal illustration: Compensation Dispute Arising From Breach of Sale Agreement
Legal illustration: Compensation Dispute Arising From Breach of Sale Agreement

Order 8. Mr. Man agreed to sell his land and house to Mr. Kong at a price of twenty thousand baht, whereupon Mr. Kong executed a contract of sale and purchase agreement. The agreement stipulated that it would be registered with the Land Office on January 20, 2525, and it was also specified in the contract that it would not register the transfer of the aforementioned land and house, and he consented to the court enforcing the contract as well. Subsequently, it became apparent that Mr. Man was able to purchase a new house, thereby breaching his agreement not to sell his land and house to Mr. Kong, and he agreed to pay a compensation of twenty thousand baht to Mr. Kong. Mr. Kong and the house of Mr. Man remained, and Mr. Kong engaged a lawyer to sue the court to compel Mr. Man to transfer the land and house according to the contract. Mr. Man fought the case, arguing that Mr. Kong had already received compensation, and therefore could not sue to compel the transfer of the land and house according to the contract, and Mr. Kong admitted to paying the compensation, thereby losing the right to sue for enforcement of the transfer of the land and house. The following is the ruling on the arguments of Mr. Man: The arguments of Mr. Man are not upheld because the compensation under this agreement is compensation under Section 381 of the Civil Code, paragraph one, which Mr. Kong has the right to demand payment of. Regarding the fact that Mr. Kong accepted payment of compensation by allowing Mr. Dong to lose the right to enforce the contract, due to Section 381 paragraph three, which concerns the reservation of the right to demand compensation, it is not a reservation that Mr. Man must transfer the land and house to Mr. Kong according to the contract (Judgment of the Court of Appeal No. 2216/2515).

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