The law firm Cheongchul's Attorney Park Jong-han conducted an interview with 'The Power' regarding the 'drafting of contracts under the National Contract Act'.
Recently, compliance with the requirements and procedures under the National Contract Act has become a significant issue when the state enters into contracts with private parties (individuals or private companies). When the state enters into a contract with a private party, it must draft a contract in accordance with the National Contract Act and comply with the procedures; failure to meet these statutory requirements can lead to the possibility of invalidating the contract.
When concluding contracts between the state and private parties, it is necessary to draft a separate contract in accordance with the National Contract Act, which should clearly define the essential terms of the contract. However, there are cases where, despite the conclusion of a contract between the state and a private party, the formal requirement for drafting a contract is omitted. In such cases, the likelihood that the contract itself will not be recognized grows, leading to potential legal disputes.
In this regard, Attorney Park Jong-han from the law firm Cheongchul explained, “The proviso of Article 11, Paragraph 1 of the National Contract Act stipulates that, under certain circumstances, the drafting of a contract may be omitted. Therefore, if the conditions for omitting the contract drafting are met, it is reasonable to acknowledge the validity of the contract if there is consensus between the parties regarding the main contents of the contract, even if the procedures prescribed by the National Contract Act were not followed.”
Attorney Park also added, “Even in cases where the drafting of a contract can be omitted, the requirements and procedures specified by the National Contract Act must be strictly followed; otherwise, it could lead to the denial of the contract's validity.”
For more details, you can check the full interview published.
