4th Meeting(February 23, 2010)

Civil Code Reform

Agenda

1. Discussion on individual issues relating to the Civil Code (law of obligations) reform

Summary of minutes

Members discussed on the following individual items relating to the Civil Code (law of obligations) reform.

1. Cancellation of a contract
・Necessity to clarify objective prerequisites for cancellation due to non-performance of an obligation (Necessity to put the case law theory which denies cancellation due to violation of an incidental duty in the statutory form, necessity to have a provision on cancellation upon refusal of performance).
・Necessity of "due to reasons not attributable to the obligor".
・Necessity to review provisions on effects of cancellation (the scope of the duty of restoration).
・Necessity to put the case law, which granted cancellation of the whole multiple contracts due to non-performance of one contract as to multiple contracts between the same parties, in the statutory form.
・Other issues to be discussed, direction of deliberation, points to remember, etc.

2. Assumption of risk
・Necessity to review the scope which the obligee assumes the risk of loss or damage of the subject matter for the contract.
・The relationship between cancellation based on non-performance of an obligation and assumption of risk in case both systems overlap with each other.
・Other issues to be discussed, direction of deliberation, points to remember, etc.

3. Delay in acceptance
・Necessity to materialize and clarify the effects of delay in acceptance.
・Necessity to have a provision on the duty of acceptance.
・Other issues to be discussed, direction of deliberation, points to remember, etc.

4. Other new provisions
・Necessity to stipulate a provision on the right of subsequent completion.
・Necessity to stipulate a provision on the liability of the obligor in case non-performance occurs due to an act of the third party.
・Necessity to stipulate a provision on the right to demand compensation in lieu.