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Defective performance (불완전이행)

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Defective performance (불완전이행)
TermDefinition
Defective performance불완전이행 - A situation where the debtor performs the obligation, but the performance does not conform to the content or purpose of the obligation.
Korean Civil Act definition of defective performanceNo express statutory definition; recognized in legal doctrine and case law as a form of breach of obligation (채무불이행) under Article 390.
Article governing defective performance as breachArticle 390 (Non-performance of Obligations and Compensation for Damages).
Sub-category of defective performanceBreach / non-performance of obligation (채무불이행).
Element of performance concerned in defective performanceThe QUALITY / conformity of the performance with the content and purpose of the obligation.
Typical example of defective performance (goods)Delivering goods that do not meet the contractual specifications.
Legal basis for liability from defective performanceArticle 390 of the Civil Act.
Requirement 1 for liability of defective performanceA valid obligation between the parties.
Requirement 2 for liability of defective performanceThe debtor must have performed the obligation inconsistently with its contractual content.
Requirement 3 for liability of defective performanceThe creditor must show damage as a result of the defective performance.
Requirement 4 for liability of defective performanceA causal relationship between the defective performance and the damage.
Requirement 5 for liability of defective performanceThe breach must be attributable to the debtor's fault, either intent or negligence.
Who proves non-attributable causeThe debtor (obligor) must prove a cause not attributable to him.
Forms of fault required under Article 390Intent or negligence.
Function of the doctrine of defective performanceIt protects the creditor's contractual interests by ensuring obligations are performed according to their intended content.
Article 390 official titleNon-performance of Obligations and Compensation for Damages (채무불이행과 손해배상).
Main rule of Article 390If an obligor fails to perform in accordance with the obligation, the obligee may claim damages.
Proviso of Article 390Does not apply where performance has become impossible and is not due to the obligor's intention or negligence.
Key phrase in Article 390 for proper performance'In accordance with the tenor and purport of the obligation.'
Article 393 official titleScope of Compensation for Damage (손해배상의 범위).
Content of Article 393(1)Compensation for damage from non-performance is limited to ordinary damages (통상손해).
Content of Article 393(2)Obligor is responsible for special damages only if foreseeable.
Article governing scope of damages for defective performanceArticle 393.
Test for recovering special damagesForeseeability: obligor foresaw or could have foreseen special circumstances.
Article 544 official titleDelay of Performance and Rescission (해제권의 행사).
Main rule of Article 544If one party does not perform, the other may fix a reasonable period for performance and rescind the contract if not performed.
Proviso of Article 544No peremptory notice required if obligor declares intention not to perform.
Article for terminating contract after defective performanceArticle 544 of the Civil Act.
Article 581(2) relevanceSeller's warranty in sales by kind; grounds a right to cure even without debtor's fault.
Provision allowing right to cure without faultArticle 581(2) of the Civil Act.
Right to demand cure추완청구권 - The creditor may require the debtor to correct defective performance.
Forms of cure1) repair of defective goods; 2) replacement of goods; 3) completion of performance; 4) any other necessary measures.
Principle expressed by right to cureCreditor's main interest is to obtain PROPER PERFORMANCE rather than monetary compensation.
General statutory provision for right to cure in Korean lawNo general statutory provision exists.
NachbesserungsanspruchGerman term for the right to cure / right to demand supplementary performance.
Doctrinal debate on right to cureWhether it should be a claim for specific performance or a distinct right.
Article grounding creditor's claim for damagesArticle 390 of the Civil Act.
How debtor avoids liability in damagesBy proving non-performance was due to a cause not attributable to him.
Default scope of recoverable damagesOrdinary damages (통상손해) under Article 393(1).
When special damages are recoverableOnly if obligor foresaw or could have foreseen special circumstances (Art. 393(2)).
Textbook example of special damagesDefectively constructed building leading to structural collapse.
Legal bases for liability for extended damageContractual liability or tort liability, provided causation exists.
Extra element for extended damage compensationCausation between the breach and the extended damage.
Condition for creditor to terminate contract for defective performanceDefective performance must substantially frustrate the purpose of the contract.
Procedural step before terminationCreditor must demand cure within a reasonable period.
Effects of terminationReleases parties from obligations and allows creditor to claim damages.
Main remedies for defective performance1) right to demand cure; 2) damages under Art. 390; 3) termination under Art. 544.
Impossibility of performance이행불능 - Performance has become objectively impossible due to circumstances.
Consequence of debtor's attributable impossibilityDebtor may be liable for damages under Article 390.
Delay in performance이행지체 - Debtor fails to perform within agreed time although performance remains possible.
Breach in delayFailure to perform ON TIME.
Distinction between forms of breachDelay concerns TIMING; impossibility concerns FEASIBILITY; defective performance concerns QUALITY.
Form of breach concerning timingDelay in performance (이행지체).
Form of breach concerning feasibilityImpossibility of performance (이행불능).
Form of breach concerning qualityDefective performance (불완전이행).
Can defective performance arise in obligations 'to give'?Yes.
Example of obligation 'to give'Seller's duty to deliver goods.
Example of obligation 'to do'Physician's duty to provide medical treatment.
First distinction in assessing defective performance of obligation 'to do'Whether it is an obligation of RESULT or an obligation of MEANS.
Result obligation definitionAn obligation requiring the debtor to achieve a specific contractual outcome.
When is a result obligation breached?When the debtor fails to achieve the agreed result or achieves it defectively.
Typical example of result obligationConstruction contracts.
Means obligation definitionAn obligation requiring the debtor to exercise reasonable care and diligence.
When is a means obligation satisfied?When the debtor acts with the level of care expected from a reasonable person.
Typical examples of means obligationsProfessional services such as medical treatment.
Importance of result/means distinctionDetermines the STANDARD for assessing breach.
Standard of breach in RESULT obligationsFailure to achieve the promised result constitutes defective performance.
Standard of breach in MEANS obligationsDefective performance arises only when required care is not exercised.
Surgeon's operation outcomeMeans obligation; failed outcome alone is not a breach.
Builder's house with cracked foundationsResult obligation; defective performance due to defective manner.
Debtor (obligor)채무자
Creditor (obligee)채권자
Ordinary damages통상손해
Special damages특별손해
Result obligation결과채무
Means obligation수단채무
Repair수리
Replacement교환
Right of termination해제권
Right to demand cure / supplementary performance추완청구권
Delay in performance이행지체
Impossibility of performance이행불능
Obligation채무