What should an Equipment Hire Agreement include under Thai law?

1. Definitions and Interpretation
2. Hire
3. Delivery, Inspection and Return
4. Owner's Obligations
5. Hirer's Obligations
6. Charges and Payment
7. Risk, Loss and Damage
8. Liability
9. Data on the Equipment
10. Termination
11. Notices
12. Governing Law and Disputes
13. General

• Check and test every item together, and photograph the serial numbers and any existing marks (Clause 3.2 and Schedule 2). Most hire disputes are about who caused a scratch or a missing accessory.
• Report hidden defects within 24 hours after handover. Report breakdowns at once: the Hire Charges stop from your notice until the Owner repairs or replaces the item (Clause 4.2).
• Return on time. Late return is charged daily, and after 7 days the Owner may treat the Equipment as lost (Clause 3.4).

• The Hirer is liable for loss or damage caused by its fault or misuse, as Thai law provides for a hirer (Civil and Commercial Code section 562). The Hirer is not liable for fair wear and tear or for a theft that happens despite proper security, but it must prove that it kept the Equipment secure (Clause 7.2). Keep it locked away when not in use.- The Hirer carries the risk of loss or damage from any cause, including theft, except fair wear and tear, defects and the Owner's own fault (Clause 7.2). This goes further than the Civil and Commercial Code, which makes a hirer liable only for loss caused by its fault. It is common for expensive portable equipment, but the Hirer should insure it.
• The Hirer's liability for each item is capped at its Replacement Value plus up to 14 days of Hire Charges (Clause 7.3). Check that the Replacement Values in Schedule 1 are realistic; a value much higher than the market price may be reduced by a court.
• The Hirer must insure the Equipment for its Replacement Value with the Owner as loss payee and show the certificate before handover (Clause 7.4). Check that the policy covers theft from vehicles and use at the Site.

• The Hirer is responsible for safety at the Site (Clause 5.3). Some machines, such as cranes and forklifts, may only be operated by trained or certified operators under Thai occupational safety rules. If you also need an operator from the Owner, use a service contract with an operator instead.- Flying a drone in Thailand requires registration and permission from the aviation and telecommunications authorities, and flying is restricted near airports, government buildings and crowds. Check before the shoot (Clause 5.3).- Delete your data before returning computers, phones or storage devices, and ask the Owner for written confirmation that the storage has been wiped (Clauses 5.3 and 9.2). Personal data left on a returned device can be a data breach under the Personal Data Protection Act.- Follow the manufacturer's instructions and any special instructions in Schedule 1 (Clause 5.3).

• Stamp duty on leases applies to land, buildings and other structures, not to movable equipment, so this Agreement does not need stamps as a lease.
• A VAT-registered Owner charges VAT on the Hire Charges (Clause 6.3). A company Hirer normally withholds 5% on equipment rental and gives the Owner the withholding tax certificate.

• Keep the signed Agreement, Schedule 2 with photographs, delivery notes, messages about extensions and breakdowns, receipts and tax invoices.
• A Thai court works in Thai. A Party that relies on this Agreement in court must file a certified Thai translation.

Compiled from the notes that accompany the English contract templates on this site, published by Phuwara Krobtaku (ภูวรา ครอบตะคุ), Thai attorney-at-law, licence no. 477/2558. The short answer and summary at the top of this page are put together by the site from the template's clause headings and notes. Statutes are quoted only in the official Thai text: Thai is the only official language of Thai legislation, and an unofficial translation can mislead. Article registry OKC-E19720. If you reuse this content, please credit the author and link to the original.