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PRAIR THE LAWYERCHAROENPHON PETCHWIJIT LAW OFFICE

Civil & Commercial Litigation

A guarantor who did not consent to debt restructuring: a Bangkok hire-purchase case

A hire-purchase debt had been restructured without the guarantor’s consent. The claimant could not prove consent, and the court dismissed the claim against our client.

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What happened

The client was sued in Bangkok as guarantor of a vehicle hire-purchase agreement. The claimant sought an outstanding debt after the original arrangement had been restructured. The issue was whether the client had consented to the changed obligations.

What we did

We reviewed the complaint, the hire-purchase agreement and the debt documents. The restructuring had changed both the repayment period and the amounts due, but the client had not consented to it as guarantor.

During the proceedings and witness examination, we challenged the claimant's case on that point. The claimant could not produce evidence that the guarantor had agreed to the revised terms.

The outcome in this case

The court accepted the argument concerning lack of consent and dismissed the claim against the client. The client was released from the financial liability asserted against them in these proceedings.

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