Book 3 — Specific Contracts

Section 856 — Current account (compte courant) — definition

Statutory text (Thai original)

อันว่าสัญญาบัญชีเดินสะพัดนั้น คือสัญญาซึ่งบุคคลสองคนตกลงกันว่าสืบแต่นั้นไป หรือในชั่วเวลากำหนดอันใดอันหนึ่ง ให้ตัดทอนบัญชีหนี้ทั้งหมดหรือแต่บางส่วนอันเกิดขึ้นแต่กิจการในระหว่างเขาทั้งสองนั้นหักกลบลบกัน และคงชำระแต่ส่วนที่เป็นจำนวนคงเหลือโดยดุลยภาค

Verbatim from the Royal Gazette / Office of the Council of State

Firm annotation

Section 856 is part of Book 3 (Specific Contracts) of the Thai Civil and Commercial Code. This entry is awaiting firm-authored commentary; the statutory text above is verbatim from the Office of the Council of State (OCS Krisdika) Thai source, with the English translation from the FAO/UN FAOLEX repository. Always rely on the Thai original for legal proceedings.

High importance

Why this matters in practice

For lawyers: a bank overdraft facility operated by regular transactions constitutes a current account under Section 856; compounding interest is permissible by banking trade custom. For laypersons: a bank overdraft is a current-account arrangement — only the outstanding net balance is what you owe, and the bank can compound interest by trade custom.

Legislative history

Part of the original Civil and Commercial Code codification; no major subsequent amendment.

  • current account
  • compte courant
  • set-off
  • banking
  • overdraft
  • balance

Supreme Court decisions interpreting this section

  1. Supreme Court Judgment No. 469/2543 (2000)

    A current account under Section 856 is informal; it may be constituted by express agreement or inferred from the parties' conduct and banking documentation.

    A current account contract under Section 856 requires no particular form and need not be evidenced in writing; it may arise from express agreement or from the conduct of the parties, including the terms of a cheque account application.

    Read the full decision (deka.in.th)

  2. Supreme Court Judgment No. 7821/2542 (1999)

    An open-ended overdraft facility is a current account that continues while transactions occur; the balance crystallises into an ordinary debt on final demand or agreed termination.

    An overdraft facility with no fixed end date continued as a current account as long as transactions occurred; it terminated only when the parties agreed to end it or when the bank made a final demand, at which point the balance became an ordinary debt.

    Read the full decision (deka.in.th)

Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.

This is educational reference, not legal advice. Consult a qualified Thai lawyer before relying on any provision.

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