1. Of the judgment of the court of first instance, the part against Plaintiff B is revoked, and Plaintiff B’s Defendant-Counterclaim Plaintiff Co., Ltd. and Defendant D.

1. Basic facts (the principal lawsuit and counterclaim shall be deemed to be filed together);

A. Defendant D and Defendant E are contractors and contractors who newly built and sold F apartment (hereinafter “instant apartment”) located in Incheon Free Economic Zone GB block, with respect to the instant apartment No. H on January 15, 2010, Plaintiff B entered into each sales contract with respect to the instant apartment No. 1 on December 9, 2009, and Plaintiff C entered into each sales contract with respect to the instant apartment No. 1 on December 10, 2009.

(2) The sales contract concluded between Plaintiff A, Plaintiff C and the Defendants is called the instant sales contract, and Plaintiff A and Plaintiff C are called the Plaintiff (hereinafter “Plaintiff”).

According to Article 2(1)3 of the instant sales contract, “Defendant E may cancel the instant sales contract after the peremptory notice if the buyer of the instant apartment fails to pay the balance within three months from the expiration date of the occupancy designation period.” The main text of Article 3(1) provides that “When the contract is cancelled for reasons falling under Article 2(1), 10% of the total supply amount shall be reverted to Defendant E as penalty.”

C. The Plaintiffs raised suspicions of defective construction works, and did not pay the remainder to Defendant E even after May 28, 2013, which is the due date for occupancy designation. Defendant E notified the Plaintiffs of the cancellation of the instant sales contract on the grounds that the payment remains unpaid and the notification thereof reached each of the Plaintiffs on the corresponding date indicated in the “the “the date of contract termination” column for each Plaintiff as indicated in the attached Table.

Article 10(4) of the instant sales contract provides that “In the event the instant sales contract is cancelled for reasons falling under Article 2 after receiving a loan from the buyer, Defendant E shall pay interest-free loan, interest on a loan from the buyer at the time of the cancellation of the sales contract, interest on a loan from the buyer at the time of the cancellation of the contract.” Article 3(3) of the instant sales contract provides that “When the contract is cancelled, Defendant E shall pay the price already paid by the buyer.