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Foreign-Currency Repayment Clause Interpretation
Borrower v Bank (USD loan)
Composite summary — not a single reported case. This entry distils a settled line of Thai Supreme Court (Dika / ฎีกา) authority for legal education. It is not a transcript of one reported judgment, and the heading is not a citable case number. Do not cite it as specific case law — consult a Thai-qualified lawyer for the authoritative Dika number and current application.
Facts
USD-denominated loan agreement provided for Thai-Baht repayment at the spot rate on the repayment date; borrower disputed the bank's selected rate after sharp THB depreciation.
Legal Issue
Whether the bank may unilaterally select the conversion rate when the contract refers to the 'spot rate' on the repayment date.
Holding
Supreme Court line holds that absent express agreement on the publishing source, the prevailing inter-bank mid-rate published by the Bank of Thailand on the repayment date is the proper reference, not the bank's selling rate.
Reasoning
Where contracts are ambiguous, the construction favouring the borrower as the weaker party governs; the BOT mid-rate is the neutral published benchmark consistent with industry practice.
Significance
Important for foreign-currency-denominated borrowings; affects effective cost of borrowing.
Practical Takeaway
Contracts should expressly name the publishing source and time-stamp; ambiguity favours borrower.
Cited Statutes
- Civil and Commercial Code §11 (construction of contracts)
- Exchange Control Act B.E. 2485
This entry summarises a representative line of authority from the Thai Supreme Court (ฎีกา). It is intended for general legal education only and is not a substitute for advice from a Thai-qualified lawyer. Individual Dika case numbers are being verified against primary sources; until then these entries are presented as composite doctrinal summaries.
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