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ResourcesThai Civil and Commercial CodeBook2Obligations Part VI Preferential Rights

Obligations Part VI Preferential Rights

Page: 44

Section: 278 - 283

Section 278.- When preferential rights in the same movable conflict, the rank of their precedence is as follows :

              (1) The preferential right on account of the hiring of an immovable, of lodging in an inn and of carriage ;

             (2) The preferential right on account of the preservation of a movable ; but if there are several persons entitled as preservers, a later preserver takes precedence of an earlier one ;

            (3) The preferential right on account of the sale of a movable, of the supply of seeds, young plants or manure, and of agriculture and industrial services.

If a person who has a preferential right of the first rank knew at the time when he acquired his obligation that other persons have preferential rights of the second or third rank, he cannot exercise his right of precedence against them. The same applies as against a person who has preserved a thing for the benefit of a person having a preferential right of the first rank.

As to fruits, a person, who rendered agricultural service, has the first rank, a supplier of seeds, young plants or manure the second, and the letter of the land the third.

 

Section 279.- When special preferential rights in the same immovable conflict, the rank of their precedence is according to the order in Section 273.

If successive sales have been made of the same immovable, the rank of precedence of the sellers as between themselves is according to the priority of the sales.

 

Section 280.- When several persons have preferential rights of the same rank in the same thing, each is to receive performance in proportion to the amount of his obligation.

 

4. Effect of Preferential Rights

 

Section 281.- A preferential right in movable cannot be exercised after the debtor has delivered the thing to a third person who has acquired it from him.

 

Section 282.- When a preferential right conflicts with a pledge of a movable, the pledgee has the same rights as the holder of a preferential right of the first rank mentioned in Section 278.

 

Section 283.- A person, who has a general preferential right, must receive performance first out of the movable property of the debtor, and only in case that is insufficient he can receive performance out of immovables.

As to immovable, he must receive performance first out of such immovable as are not subject of a special security.

If a person who has a general preferential right negligently omits to intervene in a distribution according to the provisions of the foregoing two paragraphs, he cannot exercise his preferential right against a third person whose right is registered, to the extent of what he would have received through such intervention.

The provisions of the foregoing three paragraphs do not apply, if the proceeds of an immovable are to be distributed before those of other property, or if the proceeds of an immovable which is the subject of a special security are to be distributed before the proceeds of other immovables.