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Deals & Cases

Confirmation of the non-existence of a contract

Mokpo Real Estate Attorney Case | Mokpo Real Estate Attorney Prevails in a Suit for Confirmation of Non-existence of Contract Against a Subcontractor Who Left the Work Unattended

The client who came urgently to a Mokpo real estate attorney had been suffering because of the subcontractor he had commissioned to construct a new house. According to the client, although he had paid approximately 300 million won in construction costs, the building was left unattended with the rebar exposed.

CONTENTS
  • 1. The Client Who Appealed to a Mokpo Real Estate Attorney
    • - Mokpo Real Estate Attorney on the Rise of Fraud in New House Construction
    • - Mokpo Real Estate Attorney's Assessment of the Client's Case
    • - Statutes Related to Construction Contracts, Examined with a Mokpo Real Estate Attorney
  • 2. Mokpo Real Estate Attorney: “The Defendant Continually Demanded Additional Construction Fees… Yet Failed to Perform the Work”
  • 3. Court Accepts the Mokpo Real Estate Attorney's Argument and Confirms the Claim in This Case

1. The Client Who Appealed to a Mokpo Real Estate Attorney

The client who came to a Mokpo real estate attorney stated during the consultation that he was suffering severe emotional distress.

The client confided to the Mokpo real estate attorney that the counterparty with whom he had entered into a house construction contract had received more than 300 million won in down payment and construction payment but had not performed the construction.

Worn out by the situation, the client wished to rescind the contract with the counterparty as soon as possible and enter into a new construction contract with another company.

For this reason, the client requested the help of a Mokpo real estate attorney at Daeryun Law Firm.

Mokpo Real Estate Attorney on the Rise of Fraud in New House Construction

The Mokpo real estate attorney pointed out that subcontractors are not the only ones who suffer in matters relating to construction payment.

This is because, in new house construction and interior renovation work, there are increasing cases in which a subcontractor demands additional payment on the pretext of rising material costs and then fails to carry out the work properly.

The Mokpo real estate attorney explained that, in such cases, one should seek an attorney specializing in this field and obtain an accurate assessment of the matter.

Mokpo Real Estate Attorney's Assessment of the Client's Case

After examining the client's case closely, the Mokpo real estate attorney confirmed the counterparty's unlawful act and, in accordance with the client's request, decided to proceed with a suit for confirmation of non-existence of contract in order to establish that the construction contract did not exist.

Statutes Related to Construction Contracts, Examined with a Mokpo Real Estate Attorney

Let us examine the statutes related to construction contracts with the Mokpo real estate attorney.

Statutes Related to Extinctive Prescription and Construction Payment

Civil Act
Article 163 (Short-term Extinctive Prescription of Three Years) The following claims shall be extinguished by prescription if not exercised for three years.
1. Claims for interest, support payments, salaries, rent, or other payments of money or goods determined to be paid within a period of one year or less
2. Claims of physicians, midwives, nurses, and pharmacists for treatment, labor, and dispensing
3. Claims relating to construction held by contractors, engineers, and others engaged in the design or supervision of construction
4. Claims of attorneys, patent attorneys, notaries public, certified public accountants, and judicial scriveners for the return of documents held in the course of their duties
5. Claims of attorneys, patent attorneys, notaries public, certified public accountants, and judicial scriveners relating to their duties
6. The price of products and goods sold by producers and merchants
7. Claims relating to the work of artisans and manufacturers

Article 671 (Warranty Liability of a Contractor - Special Provisions Concerning Land, Buildings, etc.) (1) A contractor for land, a building, or any other structure shall be liable for a warranty with respect to defects in the subject matter or in the ground work for five years after delivery. However, if the subject matter is made of stone, lime, brick, metal, or other similar materials, that period shall be ten years.
(2) Where
the subject matter is destroyed or damaged due to the defects under the preceding paragraph, the person ordering the work shall exercise the rights under Article 667 within one year from the date of such destruction or damage.

Article 673 (Right of the Person Ordering the Work to Rescind Before Completion) Before the contractor completes the work, the person ordering the work may rescind the contract by paying damages.

2. Mokpo Real Estate Attorney: “The Defendant Continually Demanded Additional Construction Fees… Yet Failed to Perform the Work”

Through a close consultation with the client, Daeryun Law Firm formed a team of Mokpo real estate attorneys composed of multiple professionals with extensive experience in construction contract, confirmation of non-existence of contract, and construction payment cases.

The Daeryun Mokpo real estate attorney team argued that the defendant continually demanded additional construction payment, and that the plaintiff paid it but the defendant did not perform the construction.

The team further pointed out that the defendant, despite having committed an unlawful act, even filed a provisional attachment of a claim in order to shift all responsibility to the plaintiff.

■ According to the contract, the construction should already have been completed, but the current state of the construction was confirmed to be left unattended with the rebar exposed.

■ It was determined that the defendant had received additional construction payment from the plaintiff yet failed to perform the construction.

■ There was abundant evidence proving that the defendant had not carried out the construction.

■ The plaintiff was suffering because of the defendant's unlawful act.

■ The reason the plaintiff pursued the claim for confirmation of non-existence of contract was that the defendant falsely claimed not to have received payment and filed a provisional attachment of a claim.

■ Through the outcome of this lawsuit, the plaintiff wished to have the non-existence of the contract confirmed as soon as possible so that he could find a new company and proceed with the construction.

3. Court Accepts the Mokpo Real Estate Attorney's Argument and Confirms the Claim in This Case

The court accepted the argument of the Daeryun Mokpo real estate attorney and rendered a judgment confirming that “the house construction contract entered into between the plaintiff and the defendant on the specified date does not exist.”

The client was suffering greatly because of the counterparty's unlawful act. The counterparty had received money yet failed to perform the construction and even filed a provisional attachment of a claim, asserting that he had not received the construction payment.

The Mokpo real estate attorney clearly assessed the client's unfair situation, took the necessary legal action, and obtained the result the client sought.

As a result, the client was able to find another company and promptly resume the construction.

Daeryun Law Firm operates construction and real estate, civil, and damages groups to respond promptly to related cases.

For unexpected legal disputes involving matters such as construction payment, damages, and consolation money, professionals in each field collaborate to handle cases.

If you would like the one-stop legal service of a team of professionals, you are welcome to contact Daeryun at any time. Daeryun will remain with you to the end.

목포부동산변호사 조력사례 | 목포부동산변호사, 공사 방치한 하수급인에 계약부존재소송 진행해 승소

This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.

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