2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

The first instance court.

A. The Plaintiff is a company that performs software development duties, etc., and the Defendant is a school foundation that operates C University.

B. On August 12, 2015, the Plaintiff concluded a contract with the Defendant under which the Defendant’s integrated lecture support system (hereinafter “instant system”) was to be developed (hereinafter “instant system development service”); the contract amount was KRW 200 million; and the contract term was from August 12, 2015 to January 31, 2016 (hereinafter “instant contract”).

The main contents of the instant general terms of contract are as follows.

Article 13 (Inspection) (1) Upon completion of services, the plaintiff shall notify the defendant in writing and undergo an inspection by the defendant.

The same shall also apply where a completed portion is intended to be paid in whole or in part prior to the completion thereof.

Article 15 (Payment of Price) (1) When the plaintiff has passed the inspection under the provisions of Article 13 after performing the contract, he may claim the price.

Article 19 (Cancellation of Contracts) (1) In cases where a plaintiff falls under any of the following subparagraphs, the defendant may cancel or terminate the relevant contract:

2. Where services are not completed within the contract period or it is deemed unlikely to be completed due to causes attributable to the plaintiff;

5. Where the contract terms are violated and the purpose of the contract cannot be achieved due to such violation. <3> Where this contract is inevitably terminated due to a cause attributable to the defendant, the expenses incurred in providing the service may be paid to the plaintiff by the day before the termination.

C. As the Plaintiff failed to complete the instant system development services by January 31, 2016, the Defendant extended the time limit to February 19, 2016.

On February 3, 2016, the Plaintiff issued a CD containing the instant system to the Defendant, but was not normally operated, and on February 11, 2016 and on February 13, 2016.