What should a Personal Guarantee include under Thai law?

1. Definitions and Interpretation
2. Guarantee
3. Guaranteed Debts and Maximum Amount
4. Notice of Default and Demand
5. Changes to the Guaranteed Debts
6. Guarantor's Rights
7. Information
8. Early Termination for Future Transactions
9. Release
10. Guarantor's Statements
11. Costs and Stamp Duty
12. Personal Data
13. Notices
14. Governing Law and Disputes
15. General

• An individual guarantor cannot be made liable as a joint debtor. Any clause that says so, in this Guarantee or in the Main Contract, is void (Civil and Commercial Code section 681/1). Clause 2.2 and Clause 15.1 confirm this.
• The guarantee must identify the debt clearly, and the Guarantor is liable only for that debt (section 681). For future debts, the guarantee must state the purpose, the nature of the debt, the maximum amount and the period in which the debts may arise. Fill in all of them (Clause 1.1).Describe the Main Contract precisely, with its date, parties and amount (Clause 1.1).
• The Guarantor's total liability is capped at …, including interest and costs (Clause 3.2).

• Send the Guarantor a written notice of the default within 60 days after the date of default (Clause 4.1). If the notice is late, the Guarantor is not liable for interest, damages and charges after the 60-day period (section 686). Use registered post with acknowledgment of receipt and email.
• Do not demand payment from the Guarantor before the notice reaches him or her (Clause 4.2). The Guarantor may choose to pay on the Debtor's original instalment terms (Clause 4.3).
• If you agree with the Debtor to reduce the debt, notify the Guarantor within 60 days (Clause 5.1, section 691).
• Do not give the Debtor more time to pay without the Guarantor's written consent given at that time. An extension without that consent releases the Guarantor, and consent given in advance does not count (Clause 5.2, section 700).
• The Guarantor may ask you to claim from the Debtor first and, if the Debtor can pay, to enforce against the Debtor's assets first (Clause 2.3).

• A guarantee carries stamp duty under Instrument 17: 10 THB for a guarantee of more than 10,000 THB or of an unlimited amount, 5 THB for more than 1,000 THB up to 10,000 THB, and 1 THB for 1,000 THB or less. On the Maximum Amount you entered, the duty is the amount the system calculates from the figures entered, and each counterpart carries the amount the system calculates from the figures entered.
• By law the Guarantor is liable for the duty, but Clause 11.2 makes the Creditor pay it. If the Guarantee is signed electronically, pay the duty through the Revenue Department's e-Stamp Duty system.
• An unstamped guarantee cannot be used as evidence in a Thai civil court until the duty and a surcharge are paid (Revenue Code section 118).

• The Guarantor must sign personally. A guarantee can be enforced only if there is written evidence signed by the Guarantor (section 680).
• Give the Guarantor a copy of the Main Contract before signing and a signed copy of this Guarantee after signing (Clauses 7.1 and 10.1). If the Guarantor cannot read English well, give a Thai translation and let him or her take advice.
• If the Guarantor signs with a thumbprint, two witnesses must sign.

• The Guarantor may ask for a statement of the outstanding debt once every 3 months (Clause 7.2).
• The Guarantor may end the Guarantee for transactions made more than 30 days after a notice, but stays liable for earlier debts (Clause 8.1). A Creditor who still needs a guarantee should ask for a replacement guarantor before that date.
• A new facility, a higher credit limit or a different contract is not covered unless the Guarantor signs a new guarantee (Clause 3.1).

• A Thai court works in Thai. The Creditor must file a certified Thai translation of this Guarantee and of the notices sent under it.
• A Guarantor who pays the Creditor can recover the amount from the Debtor and takes over the Creditor's security (Clause 6.3). Keep the Creditor's signed receipt.

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-7FC82B. If you reuse this content, please credit the author and link to the original.