Problems Concerning the Protection of Weaker Contracting Parties in Thai Conflict-of-Laws Rules

Abstract

According to Thai Conflict-of-Laws Rules, granting party autonomy for the contracting parties to choose the applicable law of their contract may result in a situation, where the contracting parties with a stronger bargaining position can evade domestic legal provisions aiming at the protection of weaker contracting parties. The study has found that the application of existing palliative mechanisms, which are public policy exception and overriding mandatory rules, primarily rely on judicial discretion. This situation results in legal uncertainty for both parties. This paper suggests a clear definition of the scope of application of domestic law providing the protection of the weaker parties that also covers the legal relationship containing foreign elements in order to enhance the protection of weaker contracting parties through public policy exception and overriding mandatory rules.