Insight Law Firm recently prevailed in a lawsuit seeking rescission of a sales contract related to a delay in occupancy of an officetel, representing the developer and the trust company.
Looking at the background of the case, the plaintiff was a purchaser of the officetel.
When the originally scheduled occupancy date was delayed, the plaintiff asserted rescission of the contract based on the sales agreement and claimed the return of the down payment and a penalty.
The plaintiff argued that the right to rescind the contract had arisen on the ground that occupancy had been delayed.
Representing the defendants, our firm conducted an in-depth review of the legal nature of the right to rescind arising from delayed occupancy and the timing of its exercise.
In particular, we focused on the principle under the Civil Act that liability for non-performance due to delay in performance is extinguished upon a lawful tender of performance, and applied this to the interpretation of the contractual right of rescission to construct the defense logic.
The court accepted our firm's argument and dismissed the plaintiff's claim. The court held that, since the defendants had obtained approval for use and provided guidance on occupancy, the plaintiff's subsequent declaration of intent to rescind the contract was without effect.
This is a meaningful judgment that reaffirms the legal doctrine that even a contractual right of rescission is extinguished where there is a lawful tender of performance by the obligor.