Thailand (a constitutional monarchy) is built around a civil law system, with a few elements of common law. The main source of law is the Civil and Commercial Code, which was enacted in 1908. This code is based on the French Civil Code, but it has been amended many times since its enactment. Other important sources of law include the Constitution of Thailand, statutes enacted by the legislature, and judicial precedent. Thai contract law is based on the principle of freedom of contract, which means that the parties to a contract are free to negotiate the terms of the contract and are not bound by any predetermined terms. This principle is reflected in the Civil and Commercial Code, which provides that the parties to a contract are free to agree on the terms of the contract, including the price, the delivery date, and the terms of payment. Under Thai law, a contract is a legally binding agreement between two or more parties. A contract must be in writing and must be signed by the parties to the contract. In order for a contract to be valid, the parties to the contract must have the capacity to contract, which means that they must be of legal age and must be mentally competent. Thai contract law is very similar to Western contract law. The main difference is that in Thailand, there is a greater emphasis on good faith and fairness. This means that contracts must be entered into in good faith and that the parties must deal with each other fairly. If one party breaches the contract, the other party can claim damages.