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1. The defendant's appeal and the plaintiff's incidental appeal are all dismissed.
2. The costs of appeal shall be borne by the defendant.
Reasons
1. The reasoning for the court's decision on this part of the facts of recognition is the same as that for the corresponding part of the judgment of the court of first instance, and thus, it is acceptable in accordance with the main sentence of Article 420
2. Determination on the cause of the claim
A. In the process of concluding the instant lease agreement, the Plaintiff asserted that: (a) the Plaintiff is a traditional Korean-style house with a size of 179 square meters wide from the location of the site, which is a joint collateral for the instant real estate, established by the broker; (b) thus, the Defendant, who is the lessor, has sufficient value of collateral; (c) thereby, he is sufficiently aware that the maximum debt amount of the instant right to collateral security is not excessive compared to the value of the instant real estate;
However, in fact, the above D land was not worth 25 square meters of the land, and thus, it would have not been concluded if the Plaintiff knew of the same fact.
As above, the Defendant violated the duty of disclosure under the principle of good faith recognized in real estate transaction, and thus, the Defendant is obligated to cancel the instant lease contract and to pay the down payment of KRW 23 million, as compensation for damages, along with the return of the down payment of KRW 23 million paid by the Plaintiff to its original state.
B. (1) In cases where it is evident in light of the empirical rule that the other party to a transaction would not have been notified of certain circumstances in real estate transactions, the other party is obligated to notify such circumstances in advance in accordance with the principle of good faith.
(2) In light of the above facts, the security value of the instant real estate and the article, which is a joint security, is an important matter related to the fulfillment of the purpose of the contract, and the instant lease agreement is concluded, as the Plaintiff seeking to rent the instant real estate.