Redemption Clause and Peremptory Notice after Cancellation

If the buyer does not pay the intermediate payment by the date on which the contract is concluded, the contract shall be deemed to have been automatically rescinded if the buyer does not perform the obligation to pay the intermediate payment under the forfeited terms and conditions, and even if the seller subsequently notified the payment of the intermediate payment, this is merely a mutually advantageous opportunity to perform the obligation to pay the intermediate payment.

Article 544 of the Civil Act

Supreme Court Decision 71Da2014 Decided December 14, 1971

Plaintiff

Attorney Lee Jae-ho et al., Counsel for the defendant 1 and one other

Daegu High Court Decision 79Na668 delivered on October 24, 1979

The judgment of the court below is reversed, and the case is remanded to Daegu High Court.

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

According to the reasoning of the judgment below, the court below decided that the plaintiff would purchase the real estate of this case from the defendants 24,70,000 won as down payment on the same day, and that the intermediate payment of 10,000 won will be paid to the non-party 12,30,000 won for the remaining 18 February of the same year and 12,300 won will be paid respectively to March 13 of the same year, and it was confirmed that the above intermediate payment and remaining payment were not in dispute between the parties, and that the defendants would not have been notified of the cancellation of the above contract to the defendants through the non-party 1, the above non-party 1, as well as that the defendants would not have been aware that the contract was terminated by the non-party 2's testimony, and that the contract was terminated by the non-party 1,600,000 won after the conclusion of the contract without the specific consent of the court below, and that the defendants would not have been aware of the above fact that the contract was terminated.

Then, with respect to the part of the judgment below which determined that the contract of this case cannot be deemed to have been rescinded even if it is based on the forfeited terms and conditions, the contract is rescinded unless the buyer pays the intermediate payment by the date agreed upon, the contract shall be automatically rescinded on that date by itself. In this case, even if the seller notified the payment of the intermediate payment by the seller thereafter, it shall be deemed that the seller provided an opportunity to perform the obligation to pay the intermediate payment by mutually advantageous terms and conditions (see Supreme Court Decision 71Da2014, Dec. 14, 197). The court below acknowledged that the above contract of this case is accompanied by the forfeited terms and conditions as stated in its reasoning, but the court below rejected the defendants' assertion as to the cancellation of the contract on the ground that the buyer's expression of the buyer's refusal to pay the intermediate payment should separately be made by the seller, and ultimately, it shall not be denied by misapprehending the legal principles on the cancellation of the forfeited terms and conditions, which affected the conclusion of the judgment.

Therefore, the judgment of the court below is reversed, and the case is remanded to the court below. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Dra-ro (Presiding Justice)