Bangkok Legal Service

Plaintiff’s Right to Deduct Construction Debt Claim

Legal illustration: Plaintiff’s Right to Deduct Construction Debt Claim
Legal illustration: Plaintiff’s Right to Deduct Construction Debt Claim

Contract for Construction: The Defendant, B, contracted to construct a house for the Plaintiff, C, for a sum of 300,000 Baht. The Defendant, B, transferred the debt for the aforementioned sum to the Plaintiff, C, through a written instrument. The Plaintiff, C, possessed a letter between the construction period wherein the Defendant, B, informed them of the debt transfer from the Defendant, B, to the Plaintiff, C. The Plaintiff, C, subsequently, upon the completion of the construction work, deducted the sum of money for the construction due to the delay of 10 days in the completion. The remaining sum of 299,000 Baht is brought forth to determine whether the Plaintiff, C, has the right to sue the Defendant, B, for the amount received from the Defendant, B.

Legal Answer: Regarding the transfer and notification of the debt, it is argued that this constitutes a complete transaction.

Referring to the Thai Civil and Commercial Code, Section 306, even if the Plaintiff, C, did not hear the notification of the debt transfer, they have the right to deduct the amount of the construction debt, as stipulated in the Thai Civil and Commercial Code, Section 315. Therefore, the Plaintiff, C, has the right to sue the Defendant, B.

Red and Dam possessed adjacent land plots. A boundary line was established, serving as a common boundary between their respective land holdings.