E-sign Laws: Thailand.

Part 8: Signing in to the digital age

Known as the “Land of Smiles”, Thailand’s tourism industry has been booming. On top of this, Thailand has been a regional leader in agriculture, automotive, and electronics. 

Business in Thailand is lucrative and promises a strong and resilient tourism industry that can be boosted even more by international business activities. 

Thailand’s growing global presence in other sectors of the economy provide plenty of opportunities for growth in the nation. In terms of e-signatures, it’s important to know where the law stands when you’re signing on the dotted line in Thailand. 

Read on to learn more about the legal compliance for electronic signatures in Thailand specifically and watch out for more in this series on Southeast Asia, Hong Kong, China, New Zealand, Australia, UK, Cayman Islands, and BVI.

The Legal Model

Thailand has an Electronic Signature Act and adopts a tiered legal model. 

The Rules

Under Thai law, a written signature is not necessarily required for a valid contract – contracts are generally valid if legally competent parties reach an agreement, whether they agree verbally, electronically or in a physical paper document (Sections 7, 9, 13 of the E-Transactions Act). 

The E-Transactions Act specifically confirms that contracts cannot be denied enforceability merely because they are concluded electronically.

Applicability of an Electronic Signature 

To prove a valid contract, parties sometimes have to present evidence in court. In the absence of a QES, leading digital transaction management solutions can provide electronic records that are admissible in evidence under Section 11 of the E-Transactions Act, to support the existence, authenticity and valid acceptance of a contract.

Enter business in the Land of Smiles with an ease of mind by understanding the above legal requirements for electronic signatures. 

Use Cases for E-sign

Instances where e-signatures are generally considered appropriate:

• consumer agreements, including invoices, purchase orders, order confirmations, sales terms, services terms, policies, shipment documentation, and user manuals

• HR Documents, such as regular employment contracts, NDAs, privacy notices, employee invention agreements benefits paperwork and other new employee onboarding processes

• real estate documents including leases

• commercial agreements between corporate entities, including invoices, sales agreements, distribution agreements, service agreements, NDAs, and purchase orders

Use Cases Requiring a Physical Signature 

There are some cases where a handwritten or wet ink signature will be necessary. Examples include:

• mortgages

• immovable property contracts

• sale of ships contracts of five tons and over

• certain family law documents, ie. those pertaining to marriage, adoption, and succession

•  securitisation documents 

By Celestine Loh

Founded in 2013, Zegal is the fastest growing LegalTech company operating across Asia Pacific and Europe. Today, business users and lawyers across the globe trust Zegal’s software to solve legal problems in an affordable and efficient way.

Zegal is led by a talented team of 60 employees and has offices in Hong Kong, Singapore, Nepal, Australia, New Zealand, and the UK.

Zegal has been featured in the New York Times, Forbes, and Huffington Post, and was recently recognised in the South China Morning Post as an emerging LegalTech company in the artificial intelligence space.

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