Winning a Lawsuit for the Price of Goods | Proving the Opposing Party's Payment Obligation and Obtaining the Full Amount Claimed by the Client

The client was a company that was receiving subcontracted work from OO Construction.

The client had concluded a contract for work on the construction of an apartment housing complex with the defendant company and had been carrying out the work for approximately 3 months.

At that time, it was agreed that the client would supply concrete and the like and receive the price of goods in cash 2 months later.

However, as OO Construction became unable to pay the construction payment to the subcontractors, including the client, the work was halted, and the defendant subsequently completed the construction through a replacement contractor.

However, the defendant company did not pay approximately 100 million won of the price of goods that it had agreed to pay to the client, and after pressing for payment, the client had received only 65 million won.

In order to recover the remaining price of goods, the client sought to pursue a lawsuit claiming the price of goods, and accordingly visited Daeryun.

🔗the price of goods refers to the consideration received for selling goods. Once a transaction in goods has been established, the buyer must pay the seller the price for the goods.

If the price has not been received, a lawsuit claiming the return of the price of goods may be filed. The extinctive prescription of the claim is 3 years.

✔ Points to note when pursuing a lawsuit claiming the price of goods

Before filing the lawsuit, a search of the other company's assets should be carried out first. This is because, even if one prevails in the lawsuit claiming the price of goods and obtains a title for execution, it has no practical effect if there are no assets against which to execute.

If, after searching the assets, there are assets exceeding the amount outstanding, it is advisable to apply for a provisional injunction or provisional attachment over them so as to prepare for future execution to proceed smoothly.

A content-certified letter regarding the price of goods is a document certifying matters such as a claim for the price of goods, and is used to publicly certify and demand payment when payment of the price of goods by a business partner has been delayed or remains unpaid.

Although this is not recognized as having legal effect, it becomes important evidence should a lawsuit later be filed, and therefore Daeryun first assisted with the dispatch of the client's content-certified letter.

The defendant's argument was that, since it was OO Construction that ordered the supply of concrete from the client company, the defendants bore no obligation for the price of goods.

However, at the time the concrete supply contract was prepared, the defendant had stated, 'I will take responsibility for all construction payments related to this construction site,' and said that it would suffice to prepare the contract with OO Construction as a formality.

Therefore, it was argued that the claim for the price of goods for the concrete should properly be made against the defendants, and that, accordingly, the unpaid remaining amount should be recovered as soon as possible.

In a lawsuit claiming the price of goods, the plaintiff bears the burden of proving the fact of the defendant's obligation for the price. Accordingly, it is recommended to proceed with the case through consultation with a specialized attorney.

Daeryun Law Firm actively assists corporate clients with claim litigation in situations where they have not been paid money owed to them in a timely manner, as in the case above.

If you require assistance in a similar situation, please feel free to request a 🔗legal consultation from Daeryun Law Firm.