Bangkok Legal Service

Mr. Luerng, pursuant to the regulations of the Mongkhon Bank, prohibits employees of the bank from entering into agreements. The amount is 100,000 baht. Mr. Luerng agreed with Mr. Kiao, a merchant, to execute a loan agreement with the bank. Upon the due date for repayment of the loan, Mr. Luerng would bring the money to the bank himself, and Mr. Kiao agreed that there would be no binding obligation under the loan agreement. In the execution of the loan agreement, Mr. Kiao entered his name as the borrower, and Mr. Luerng, as a representative receiving power from the Mongkhon Bank, signed as the person providing the loan. Mr. Luerng received the money from Mr. Kiao. Subsequently, Mr. Luerng defaulted on the repayment of the loan according to the agreement and absconded. As follows, 100,000 baht, is it possible to sue Mr. Kiao for repayment of the loan according to the agreement? The Mongkhon Bank sued Mr. Kiao for repayment of the loan according to the agreement, even though in reality, the statement of Mr. Kiao is considered to be acting on behalf of another and has no intention to be bound, he must be bound by what the intention was expressed. Mr. Kiao knew the bank’s intentions to his personal benefit, and Mr. Luerng had no authority as an agent of the Mongkhon Bank, as per the Thai Civil Code, the knowledge of Mr. Luerng is the knowledge of the Mongkhon Bank, which is a legal person as well (referring to Judgment No. 580/2519). Red pledged a camera to Black in exchange for 3,000 baht.