A Comparative Study of Loan Contract Law in Thailand, France, and China

Abstract

This research aims to: (1) examine the current conditions and legal issues concerning loan contracts in Thailand; (2) study the loan contract laws of France and China; (3) compare the loan contract laws among Thailand, France, and China; and (4) propose recommendations for improving Thailand’s loan contract law. The research is qualitative in nature, utilizing document research and in-depth interviews with five legal experts. Data were analyzed using descriptive analysis.

The findings revealed that: (1) Under Section 653 of the Thai Civil and Commercial Code, current Thai law does not recognize electronic media, such as digital documents or electronically signed agreements, as valid written evidence in civil lawsuits involving loan contract disputes. Consequently, courts rely on Section 4 and apply analogical reasoning, often referring to the Electronic Transactions Act B.E. 2544 (2001) to fill this legal gap; (2) Loan contract laws in France and China demonstrate that French Civil Code Section 1892 and Chinese Civil Code Sections 667 and 668 directly address the evolving nature of communication, explicitly supporting electronic and online loan agreements. These provisions eliminate the need to rely on analogous statutes for interpretation; (3) "A comparison of loan contract laws reveals that Section 653 of the Thai Civil and Commercial Code reflects a rigid, textual approach within the Thai judiciary. In contrast, France and China, through their respective provisions, Section 1892 in France and Section 668 in China, emphasize the principles of honesty, fairness, and equality between parties. These legal systems adopt more flexible interpretations, permitting a wider range of evidence, including electronic records and testimonial evidence; and (4) Recommendations for reforming Thai loan contract law include urging the Thai judiciary and legal system to reconsider the strict interpretation of Section 653 and to adopt principles from French and Chinese civil law, allowing for broader forms of evidence, such as electronic records and witness testimony. It is also recommended that Section 653, paragraph one, be amended as follows: “Section 653: A loan of money must be evidenced in writing and signed by the borrower, or by any other evidence indicating that the parties agreed to the loan.” Such an amendment would align Thai loan contract law with the digital age and contemporary societal changes.