1. The Client's Situation
The client requested legal advice in order to review the possibility of terminating the contract and claiming a penalty against a creator, in connection with a serious breach of trust that had arisen in the contractual relationship with that creator. Specifically, circumstances had come to light in which the creator had leaked another person's personal information to an outside party and borrowed money, and it was necessary to determine whether such conduct constituted a breach of contract and an act causing social controversy.
2. Your Legal Team's Advice
Your Legal Team legally reviewed the matter centering on the termination provision and the penalty provision in the contract, and confirmed that there was a high possibility that the leakage of personal information constituted a breach of the confidentiality provision in the contract. In addition, we analyzed the legal nature of the penalty provision (penalty for breach as compensation for damages vs. penalty for breach as a punitive sanction), and reviewed the validity of the penalty calculation based on the actual enrollment records. Accordingly, on the judgment that both termination of the contract and a claim for the penalty were possible, we proposed, as follow-up measures, sending a certified letter (content-certified mail) and pursuing civil and criminal measures in the event of non-payment. We also proposed a direction for revising the contract in order to prevent similar matters in the future.
3. Result
On the basis of Your Legal Team's advice, the client was able to proceed with notifying the creator of the termination of the contract together with a claim for the penalty, and was also able to secure legal means of responding to the unlawful conduct. In addition, it created an opportunity to improve the deficiencies in the structure of its internal contracts.