Some considerations regarding the terminates the contract by hirer in accordance with the Civil and Commercial Code, Article 573

Abstract

            This article aims to study the termination of hire purchase contracts by the hirer in accordance with the Civil and Commercial Code, Article 573, including considerations regarding the right to terminate the contract and the exercise of the right to deposit property in cases where the lessor refuses to accept the return of the hire purchase property.

            The study found that the termination of hire purchase contracts by the hirer in accordance with the Civil and Commercial Code, Article 573 is a right of the hirer, which can be exercised at any time. However, it must meet certain criteria: the termination of the contract must be declared, and the hire purchase property must be returned to the lessor. In cases where the hirer out purchase is not in default, if the contract is terminated and the lessor refuses to accept the return of the hire purchase property, thereby preventing the hirer out purchase from delivering the property, this leads to a breach of contract and subsequent litigation for damages.

            The author suggests that Regarding the right to terminate the contract, even when the hirer out purchase is in default of payment, the hirer out purchase should be allowed to terminate the contract. The Announcement of the Contract Committee, which designates automobile and motorcycle hire purchase businesses as regulated contract businesses (B.E. 2565), should be amended to allow hirer out purchase to terminate the contract even in cases of default on hire purchase payments. Concerning the termination of the contract when the hirer out purchase is not in default of payment and the hirer refuses to accept the return of the hire purchase property, in accordance with the Civil and Commercial Code, Article 331, which is closely related legislation, should be applied to such cases.