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ResourcesThai Civil and Commercial CodeBook2Obligations Chapter V Extinction of Obligations Performance

Obligations Chapter V Extinction of Obligations Performance

Page: 49

Section: 321 - 327

Section 321.- An obligation is extinguished if the creditor accepts in lieu of performance another performance than that agreed upon.

If the debtor, for the purpose of satisfying the creditor, assumes a new obligation towards him, it is not to be presumed, in case of doubt, that he assumes the obligation in lieu of performance.

If performance is made by making, transferring, or indorsing a bill or warrant, the obligation is extinguished only if such bill or warrant is paid.


Section 322.- If a thing, a claim against a third person or any other right is given in lieu of performance, the debtor shall be liable for defect and for eviction in the same manner as a seller.


Section 323.- If the subject of an obligation is the delivery of a specific thing, the person making performance must deliver the thing in the condition in which it is at the time when delivery is to be made.

The debtor must, until he delivers it, keep the thing with such care as a person of ordinary prudence would take of his own property.


Section 324.- When there is no special declaration of intention as to the place of performance, if a specific thing is to be delivery, the delivery is to be made at the place where the thing was at the time when the obligation arose ; other kinds of performance must be made at the place of the creditor’s present domicile.


Section 325.- When there is no declaration of intention as to the expenses of performance, such expenses are to be borne by the debtor ; if, however, because of the creditor’s transfer of his domicile or any other act of his the expenses are increased, such increase must be borne by the creditor.


Section 326.- The person making performance is entitled to a receipt from the person who receives performance, and if the obligation is wholly performed, he is entitled to have the document embodying the obligation surrendered to him or cancelled. If such document is declared to be lost, he is entitled to have the extinction of the obligation mentioned in the receipt or in a separate document.

If the obligation is partly performed or if the document gives the creditor any other right, the debtor is only entitled to a receipt and to have the performance noted in the document.


Section 327.- In case of interest or other periodical performance, if the creditor gives a receipt for one term without any reservation, it is presumed that he has received performance for the previous terms.

If he gives a receipt for the capital, it is presumed that he has received the interest.

If the document embodying the obligation has been surrendered, it is presumed that the obligation has been extinguished.