Dispute Arising From an Online Sales Agency Contract: Damages Compensa…
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1. Summary
A company operating a souvenir manufacturing and sales business (“Client” or “Defendant”) entered into a sales agency contract with an agent engaged in online sales and marketing business (“Plaintiff”). However, after the contract was signed, the Plaintiff began making unreasonable demands that were not provided for by the agreed-upon terms. Unable to accept the demand, the Client notified the Plaintiff of the intention to terminate the contract due to a breakdown in trust, before either party had begun fulfilling its contractual obligations. Following this, the Plaintiff demanded the payment of termination penalty for the unilateral termination of the contract by the Defendant. But when the Client refused to comply, the Plaintiff filed a lawsuit for compensation of damages. The Client then addressed to our firm.
2. Our Role: Engaged Attorneys: Minseok Ko, Mansu Kim
First, we conducted a consultation with the Client to understand the facts of the case. The Client provided evidence, including: 1) the contract, 2) SMS / KakaoTalk messages communicated with the Plaintiff, and 3) audio recordings, which were thoroughly reviewed. After reviewing all relevant evidence, we presented the following points:
1. The Plaintiff unilaterally demanded the client to execute the terms that were not specified in the contract.
2. There was evidence that the Plaintiff also ceased its execution after the Client notified of the contract termination.
3. The contract drafted by the Plaintiff included unfair special terms that could possibly make the contract void and null.
4. There was no evidence that the damages claimed by the Plaintiff actually occurred.
Based on these findings, we submitted an answer challenging the plaintiff’s claim ungrounded.
Despite the Plaintiff's repeated submissions of additional statements and evidence, the court ultimately sided with us, found the Plaintiff's claim for compensation of damages unjustified and dismissed the claim entirely, resulting in a victory for the Defendant.
3. Significance
Recently, with the rise of online marketing via Internet, SNS, YouTube, and other platforms, many businesses have been actively using these platforms to engage in product sales and marketing. However, as seen in this case, some agencies draft unfair contracts, make unreasonable demands, or engage in marketing practices that differ from the agreed terms, leading to disputes.
We have been dedicated to protecting clients from such unreasonable claims and continue to provide proactive legal solutions to those involved in similar situations.
4. Client Testimonial
“Attorneys Minseok Ko and Mansu Kim
Thank you so much for your sincere efforts in resolving my case. Thanks to your attention to detail and expert legal guidance, I was able to successfully resolve my legal issues and get back to focusing on my business. I am deeply grateful for your help and would highly recommend your services to anyone in need of excellent legal representation.”
ClientL *** Corporation
A company operating a souvenir manufacturing and sales business (“Client” or “Defendant”) entered into a sales agency contract with an agent engaged in online sales and marketing business (“Plaintiff”). However, after the contract was signed, the Plaintiff began making unreasonable demands that were not provided for by the agreed-upon terms. Unable to accept the demand, the Client notified the Plaintiff of the intention to terminate the contract due to a breakdown in trust, before either party had begun fulfilling its contractual obligations. Following this, the Plaintiff demanded the payment of termination penalty for the unilateral termination of the contract by the Defendant. But when the Client refused to comply, the Plaintiff filed a lawsuit for compensation of damages. The Client then addressed to our firm.
2. Our Role: Engaged Attorneys: Minseok Ko, Mansu Kim
First, we conducted a consultation with the Client to understand the facts of the case. The Client provided evidence, including: 1) the contract, 2) SMS / KakaoTalk messages communicated with the Plaintiff, and 3) audio recordings, which were thoroughly reviewed. After reviewing all relevant evidence, we presented the following points:
1. The Plaintiff unilaterally demanded the client to execute the terms that were not specified in the contract.
2. There was evidence that the Plaintiff also ceased its execution after the Client notified of the contract termination.
3. The contract drafted by the Plaintiff included unfair special terms that could possibly make the contract void and null.
4. There was no evidence that the damages claimed by the Plaintiff actually occurred.
Based on these findings, we submitted an answer challenging the plaintiff’s claim ungrounded.
Despite the Plaintiff's repeated submissions of additional statements and evidence, the court ultimately sided with us, found the Plaintiff's claim for compensation of damages unjustified and dismissed the claim entirely, resulting in a victory for the Defendant.
3. Significance
Recently, with the rise of online marketing via Internet, SNS, YouTube, and other platforms, many businesses have been actively using these platforms to engage in product sales and marketing. However, as seen in this case, some agencies draft unfair contracts, make unreasonable demands, or engage in marketing practices that differ from the agreed terms, leading to disputes.
We have been dedicated to protecting clients from such unreasonable claims and continue to provide proactive legal solutions to those involved in similar situations.
4. Client Testimonial
“Attorneys Minseok Ko and Mansu Kim
Thank you so much for your sincere efforts in resolving my case. Thanks to your attention to detail and expert legal guidance, I was able to successfully resolve my legal issues and get back to focusing on my business. I am deeply grateful for your help and would highly recommend your services to anyone in need of excellent legal representation.”
ClientL *** Corporation