A. The plaintiff is a company that engages in food sales business, and the defendant is a company that engages in food processing and manufacturing business.

B. On May 1, 2013, the Plaintiff and the Defendant entered into a food supply contract (hereinafter “instant supply contract”) with the Defendant to supply food materials and pay the price to the Defendant. The key contents of the contract related to the instant case are as follows.

Article 3 (Delivery and Inspection) (1) The plaintiff shall supply goods to a place designated by the defendant.

Provided, That the place of designation of the defendant is fixed at a certain area agreed by the plaintiff and the defendant.

② After transporting goods at a place designated by the Defendant, the Plaintiff is deemed to have completed the supply of a statement of transactions or a balance sheet issued by the Defendant, in which the tallyman received and affixed a confirmation seal.

Provided, That in the event of an omission in the specification or the revenue and expenditure account, it may be substituted by a tax invoice.

Article 5 (Methods of Payment and Payment Guarantee) (1) The plaintiff shall adjust the details of the goods price supplied to the defendant by the end of each month and file a claim with the defendant.

(2) The defendant shall deposit the amount under paragraph (1) (1) into the account designated by the plaintiff not later than 30 days after the end of the relevant month.

③ The Plaintiff may terminate the contract when the Defendant delays the payment of the price three times or more.

Article 7 (Term of Contract and Automatic Extension) (1) The term of validity of this Agreement shall be from May 1, 2013 to April 30, 2014.

(2) Where either the plaintiff or the defendant does not make notification on whether to renew the contract one month prior to the expiration of the contract term, the contract shall be automatically extended under the same conditions.

C. The instant supply contract was automatically extended on May 1, 2014. Since August 2014, the Defendant delayed the payment of the price to be paid on a monthly basis. On February 17, 2015, the Plaintiff notified the Defendant of his intention to terminate the instant supply contract by supplying food materials only until March 15, 2015 through content-certified mail.