
Press release
Attorney Young-kyung Lee of Law Firm Cheongchul has contributed a professional column to the legal news media "LawLeader" regarding the legal liabilities of original contractors who fail to issue written contracts in subcontracting transactions.
Recently, there have been continuous cases in various contracting sites, such as construction and manufacturing, where subcontractors (subcontractors) suffer disadvantages in payment settlement or contract modification because they were instructed to start work verbally first without being issued relevant written contracts. In response, the Supreme Court has recently explicitly ruled that in order for an original contractor who failed to issue a written contract in a subcontract to be recognized with a "justifiable cause" under the general principles of administrative law, a much stricter standard must be applied than the omission of exceptional descriptions.
Attorney Young-kyung Lee of Law Firm Cheongchul explained, "The fact that there is a justifiable cause for which the negligence of duty cannot be blamed despite violating the obligation to issue a written contract under the Subcontracting Act must be strictly proven by the original contractor claiming it." She also suggested, "Since the scope of justifiable cause recognized by the court is highly limited, original contractor must comply with the legal obligation to thoroughly issue and deliver written documents containing essential matters before starting work, rather than relying on exceptional circumstances, in order to prevent subsequent disputes."
Detailed information can be found in the published article and professional column.
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