PROBLEMS ON FORMATION OF CONTRACT IN INTERNATIONAL SALE OF GOODS

Abstract

The research on “Problems on Formation of Contact in International Sales of Goods” is intended to explore problematical issues concerning formation of contract in in relation to contracts in international sales of goods. The study embraces discussions on offers and acceptances and requirements as to form as well as evidence in writing. For these purposes, legal concepts and approaches embodied in Thai Law and foreign laws are compared and contrasted. The comparative study also covers the concepts, in foreign laws, underlying the so-called “Last Shot Rule”, “Mirror-Image Rule”, “Knock-Out Rule” and “Efficiency-Based Best-Shot Rule”

The study reveals that principles of contract law in Thailand, in relation to formation of contract, remain inappropriate for application
to contracts for international sale of goods. Under the Thai legal scheme,
a contract may not be formed in the case where an acceptance differs form an offer even if the difference in question does not materially alter the terms of the original offer. In addition, Thai law imposes
the requirements as to the form of a contract and written evidence. Such requirements do not facilitate international sales of goods. It is, therefore, recommended that the Civil and Commercial Code of Thailand be amended to the effect that an acceptance which does not materially alter the terms of an original offer nonetheless operates as an acceptance. Also, the Civil and Commercial Code should contain an exception to the effect that section 456 shall not apply to contracts for international sale of goods. At the same time, a compelling need is felt for a move towards enactment of specific legislation on contracts for international sales of goods.