EFFECTS OF ECONOMIC CRISES ON PERFORMANCE OF OBLIGATIONS UNDER CONTRACTS FOR INTERNATIONAL SALE OF GOODS

Abstract

Oftentimes, the aftermaths of economic crises on the current situation can affect the performance of obligations under Contracts for International Sale of Goods. There are two natures to such effects: the performance is impossible (force majeure), and if possible, it becomes excessively onerous for either party (hardship). Thailand does not have a specific law on International Trade. As a result, when a dispute over International Sale contract arises, the Civil and Commercial Code of Thailand is applied. Since the country has not yet enacted laws similar to hardship, the only applicable principles to apply are the Impossibility Performance under Section 218 and 219. To solve problems that may arise, the author has suggested a solution: amending the provisions of the Thai Civil and Commercial Code on performance that has become excessively onerous for either party or hardship for clarification so that it can be implemented on any case without interpreting other sections.