LEGAL PROBLEMS RELATED TO THE ENFORCEMENT OF LAWS CONCERNING SUBLEASING

Abstract

This research article aimed to: (1) study the concepts and theories relating to contracts, leases, and subleases; (2) examine factual and legal problems concerning contracts granting the right to sublease in Thailand; (3) study, analyze, and compare legal measures relating to contracts granting the right to sublease under Thai and foreign laws; and (4) explore approaches for improving Thai law to correspond with the current context. This study employed documentary research by examining the provisions of the Civil and Commercial Code, the Lease of Immovable Property for Commercial and Industrial Purposes Act B.E. 2542 (1999), Supreme Court judgments, and the laws of England, the United States of America, France, and Germany.

The findings reveal that the provisions on subleasing under Sections 544 and 545 of the Civil and Commercial Code are general in nature and do not clearly define the legal relationship among the lessor, the lessee, and the sublessee, particularly with respect to the scope of consent and the direct liability of the sublessee. Consequently, legal interpretation relies heavily on general legal principles and judicial precedents, resulting in a degree of legal uncertainty. At the same time, leasehold rights in the contemporary context possess significant economic value and may function as commercial instruments; however, Thai law provides only limited recognition of such economic dimensions. In comparison, several foreign legal systems recognize assignment and subleasing as a general principle, subject to reasonable restrictions. Accordingly, this study proposes that explicit provisions governing subleasing and the assignment of leasehold rights be enacted, clearly defining the scope of consent, liability, and commercial utilization of leasehold rights in order to enhance legal certainty and support economic development in line with present conditions.