Where the seller fails to cancel the right to collateral security on the object of sale to be cancelled, the extent that the buyer may refuse to pay the price.

If the buyer fails to cancel the right to collateral security on the subject matter of sale, the buyer may refuse to pay the purchase price to the extent of the risk, and as a result, even if the buyer has received delivery of the subject matter of sale pursuant to the proviso of Article 587 of the Civil Act, there is no obligation to pay interest after the date of delivery for the unpaid amount. In such cases, the purchase price which the buyer may refuse payment is not the amount equivalent to the maximum debt amount of the right to collateral security, but is not the amount equivalent to the maximum debt amount of the right to collateral security, and in special circumstances, such as where the buyer knows that the secured obligation amount

Articles 587 and 588 of the Civil Act

Supreme Court Decision 67Da813 Decided July 11, 1967 (No. 15-2, 160)

Plaintiff

○○○○○ (Attorney Kim Young-soo, Counsel for the defendant-appellant)

Daegu High Court Decision 95Na4422 delivered on December 27, 1995

The appeal is dismissed. The costs of appeal are assessed against the defendant.

The defendant's attorney's grounds of appeal are examined.

1. On the first ground for appeal

Examining the reasoning of the judgment below in light of the records, the court below's decision that there is no evidence to acknowledge that there was an agreement between the plaintiff and the defendant to withhold the payment of KRW 610,000,000 for the remaining purchase price until the right to collateral security of the modern timber, which was established on the real estate of this case, was just and acceptable, and there is no violation of the rules of evidence or incomplete hearing, such as the theory of lawsuit.

2. On the second ground for appeal

If there is a concern over the buyer's loss of all or part of the right purchased by him due to a person claiming a right to the subject matter of sale, the buyer may refuse payment of the purchase price in whole or in part to the extent of the risk pursuant to Article 588 of the Civil Act, and this includes cases where a security right, such as a mortgage, has been established on the subject matter of sale. Thus, if the seller fails to cancel a mortgage on the subject matter of sale, the buyer may refuse payment of the purchase price to the extent of the risk. As a result, even if the buyer has received the subject matter of sale in accordance with the proviso of Article 587 of the Civil Act, the buyer shall not be liable to pay interest on the subject matter of sale after the delivery date. However, in such a case, the purchase price which the buyer may refuse payment is not the amount equivalent to the maximum debt amount of the right to collateral security, but shall be limited to the amount of the purchase price which the buyer may refuse payment in special circumstances, such as the case where the buyer

Examining the reasoning of the judgment below in light of the records, since the defendant confirmed that the amount of the actual obligation to Non-Party Hyundai Timber was KRW 150,000,000 at the time of withholding the payment of KRW 460,000,000 out of the purchase price of the real estate in this case, the judgment of the court below which held that the defendant is liable to pay to the plaintiff the amount of KRW 310,000,000 which was calculated by deducting the amount of the above actual obligation from the unpaid remaining amount, and there is no error in the misapprehension of legal principles such as the theory of lawsuit. The argument is without merit.

3. Therefore, the appeal is dismissed and all costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Chocheon-sung (Presiding Justice)