Consumer Protection in Contracts

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By: Magna Carta Law Office

A contract is a voluntary and binding agreement between two or more persons or parties that is intended to be enforceable by law.

Consumer Protection in Contracts

It is necessary to be cautious and aware of the principles in making a contract to avoid troubles to occur later on.

  1. The objective of contract should be clearly specified.
  1. Name and address of the parties must be accurately provided.
  2. The parties must be persons who can make a contract according to the law. In the case of a minor, he or she must have consent from a guardian. Also, a married person needs an agreement from his or her spouse before making a contract.
  3. A contract form must be lawful.
  4. Damages must be specified for the breach of contract.
  5. The party who is responsible for any tax fee must be indicated.
  6. Both parties must be present when signing the contract.
  7. There should be witnesses, and their signatures affixed.

The Office of the Consumer Protection Board is commonly receiving complaints from many consumers who are treated unfairly in making a contract with a business entity.  This is primarily because a business entity generally has prepared a ready-made contract, containing unfair contract terms.

In order to protect the consumers from exploitation in making a contract, “the right to receive a fair contract” is added in the Consumer Protection Act (2nd amendment), B.E. 2541 (1998). Furthermore, some businesses are declared a controlled business with respect to contracts as follows:

Credit Card Business

There shall be contract terms that provide rights to terminate the contract at any time, the right to temporarily suspend the use of credit card by giving a notice by a phone call without any responsibility for debts occurring after the notice, etc.

Mobile Network Service Provider Business

There shall be contract terms that give consumer the right to request for the record of services in the case of retroactive checks for unusual service charges.

Consumer Loan Business by Financial Institutions

There shall be a contract that emphasizes the interest rate, change of interest rate, penalty fee of breaking a contract, and a guarantee. The consumers have the right to receive related information in detail.

Car and Motorcycle Hire-Purchase Business

There shall be a contract that emphasizes the rights that the consumers deserve. This must contain the full amount of payment the purchaser is required to make, the completion of hire-purchase registration within 30 days since the hire-purchasing business entity received the document of a hire-purchaser, and a discount of interest granted for a consumer intending to complete the installments in one payment.

Electrical Appliance Hire-Purchase Business

There shall be a contract that emphasizes the rights the consumers deserve. This must contain the termination of contract by the business entity giving written notice no less than 30 days to a hire-purchaser or a discount provided for a hire-purchaser intending to complete the installment in one payment, etc.

Condominium Selling Business

There shall be a contract that emphasizes the confirmation by the business entity on the time of finishing construction and the registration of the condominium. If a business entity cannot finish the construction, all payments already made by the consumer must be returned with interest.

If you think you are treated unfairly in making a contract, you can contact the Office of the Consumer Protection Board on their Hotline 1166 or you may go to the Sub-Committee on Provincial Consumer Protection at all City Halls and District Offices nationwide.