The Legal Issues in Hire Purchase as provided in Thai Civil and Commercial Code
A hire purchase is a type of transaction which features a prominent role throughout the history as in the current days since it gives the chance for everyone who desires to own the property to be able to possess it early and benefitted from such property by paying the hire installment periodically instead of engaging in a normal purchase. However, based on this study, Thai hire purchase law is still filled with loopholes since it allows the owner to resume possession when the contract is terminated as provided in Thai Civil and Commercial Code section 574. Nevertheless, the provision itself does not describe the approach, method, or duration for the resumption of possession. This loophole allows the owner to arbitrarily resume possession and forcing the hirer out of possession by any illegal means(coercion, duress, physical abuse or mental abuse, etc.). These actions are considered to be the extreme violation of rights and freedom. In addition, they are strongly prohibited by law and, because of this issue, the hirer thus is not protected by the law as it should be. I, the author of this thesis, would like to suggest the revision for the legal measures in protecting the hirer by adding the approach, method, and duration for resumption of possession to the hire purchase provisions of Thailand. Namely, there should be the obligation for the owner to notify the hirer before the owner himself resumes possession. The notification shall be no less than 7 days in order for the hirer to return the property without any of his damage. However, if the owner has already done such action but the hirer still continues on possessing the property, the owner shall take the legal action by litigation. Further, the provisions should provide the time of commencement and time limit for resumption of possession when the contract is terminated by giving the time of commencement as no less than 7 days after sending a notification and the time limit is no more than 1 year after the contract is terminated.
Keywords - Hire-Purchase, Hire of Property, The Civil and Commercial Code of Thailand