1. All appeals against the Plaintiff (Counterclaim Defendant) and the counterclaim by the Defendant (Counterclaim Plaintiff) are dismissed.

The main lawsuit and counterclaim are also finite.

1. The reasoning for the court’s explanation on this part of the facts is as follows: “GPC hydrotension TEST Equipment” in Part 2 of the judgment of the court of first instance is added to “the entire purport of the pleading” in Part 6, and “the entire purport of the pleading” is the same as the entry of the item “1. Basic Facts” in the judgment of the court of first instance except for adding “the result of the Defendant’s personal examination in this court,” and this part is cited in accordance with the main sentence of Article 420 of the Civil Procedure Act.

2. The parties' assertion

A. The Plaintiff’s assertion 1) The instant machinery and equipment did not work normally due to defects arising from the size and frame structure of hydrotension oil oil produced according to the Defendant’s unilateral instruction, and the Plaintiff manufactured and supplied the instant machinery and equipment at the Defendant’s request, and thus, is not liable for the said defects.

Nevertheless, by unilaterally cancelling the instant contract, the Defendant interfered with the fulfillment of the conditions of the manufacture and supply of machinery as stipulated in the instant contract. As such, the Defendant deemed the fulfillment of the said conditions (the execution of the instant contract) and is obliged to pay KRW 48,000,000 (the contract amount of KRW 160,000,000) payable to the Plaintiff.

B) As long as the Plaintiff did not have any liability for nonperformance, the termination of the contract by the Defendant shall be viewed as the exercise of the “right of rescission by the contractor before completion” under Article 673 of the Civil Act, and therefore, the Defendant is obligated to pay the Plaintiff the said money in compensation for damages equivalent to the performance interest. C) The Defendant did not notify the Plaintiff of the result of the inspection of the instant machinery within 10 days from the time of delivery of the instant machinery and equipment, thereby, pursuant to Article 9(2) of the Fair Transactions in Subcontracting Act (hereinafter “subcontract Act”).