1. The plaintiff's appeal is dismissed.

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

Purport of claim and appeal

The first instance court.

1. Basic facts

A. The Plaintiff is a corporation established for the purpose of producing and selling carba (dive housing) in two weeks, with the trade name of “C”, and the Defendant is a corporation established for the purpose of producing and selling carba (dive housing).

B. On June 27, 2017, the Plaintiff and the Defendant entered into a contract under which the Defendant set up four (6 square 2 square 2 square 2 square 3 square 3 square 2 square 2 square 2 square 2 square 2 square 2 square 2 square 2 square 2000,000 won for the Plaintiff’s operation of the Plaintiff (hereinafter “instant contract”). On the same day, the Plaintiff transferred KRW 750,000 to the Defendant as down payment.

C. Next, the Defendant did not establish a Kara team, and the Plaintiff expressed its intent to cancel the instant contract to the Defendant on July 14, 2017.

[Ground of recognition] A without dispute, entry of evidence No. 1, purport of the whole pleadings

2. Determination on the cause of the claim

A. The Defendant first agreed to set up a carra team within one week from the date of the contract of this case.

Nevertheless, the Defendant promised to suspend installation works without properly moving containers at a place where a carra team is to be installed and not to be contacted by the Plaintiff during the period of time, and that the said installation works will be done until July 12, 2017.

However, the Defendant did not perform its contractual obligations under the instant contract, such as: (a) the Defendant did not perform the said construction work even after July 12, 2017; and (b) attempted to delay the construction date on July 17, 2017.

Accordingly, on July 14, 2017, the Plaintiff notified the Defendant of the rescission of the instant contract due to the Defendant’s nonperformance, and the Defendant responded to the said notification to the effect that “The Plaintiff will return to the Plaintiff the remainder 6.5 million won after deducting one million won, such as the withdrawal equipment, from the down payment received from the Plaintiff.”

Therefore, since the contract of this case was cancelled by the plaintiff's notification of cancellation or agreement between the original defendant, the defendant received 7.5 million won as down payment from the plaintiff.