beta
Text
1. The defendant's appeal is dismissed.
2. The costs of appeal shall be borne by the Defendant.
Purport of claim and appeal
1..
Reasons
1. The reasoning of the court’s explanation concerning this case is as follows: the defendant’s argument added in the court of first instance is the same as the part of the first instance judgment, and thus, it is citing it as it is in accordance with the main sentence of Article 420 of the Civil Procedure Act.
2. Additional determination
A. Although the Plaintiff was unable to pay rebates under the instant contract to the Defendant due to the amendment of the Defendant’s assertion, the Plaintiff asserted only the validity of the previous contract without disregarding the fact that there was an incidental obligation to reflect the aforementioned change of circumstances in accordance with the principle of trust and good faith, and the Defendant’s rescission of the instant contract on the grounds of this is lawful.
(b) a contract may be rescinded or terminated on grounds of change in circumstances as an exception to the principle of contract observance, in case where the circumstances underlying the basis of the contract formation are clearly changed, the parties could not have foreseen at the time the contract formation was made, and thereby maintaining the contract as it is would cause serious imbalance to the interests of the parties or would not achieve the purpose of the contract
(see, e.g., Supreme Court Decision 2016Da249557, Jun. 8, 2017). As seen earlier, the Plaintiff was prohibited from paying compensation to the Defendant by amending the Enforcement Decree of the Specialized Credit Financial Business Act following the conclusion of the instant contract. This appears to have been unforeseeable by the parties at the time of the formation of the contract.
In addition, in the instant contract, the Plaintiff’s payment of rebates to the Defendant is one of the Plaintiff’s obligations, and the provision prohibiting the payment of the said compensation was newly established so that the Plaintiff was unable to pay rebates to the Defendant, thereby making changes in the circumstances constituting the basis for the formation of the contract.
However, the rebates received by the Defendant is applicable.