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Termination of a Retail Unit Pre-Sale Contract

Law Firm Changchun represented clients who had purchased retail units on the strength of false and exaggerated advertising by a housing association and its sales agent, and brought claims against the housing association — principally for termination of the contracts and return of unjust enrichment, and in the alternative for damages — obtaining a judgment granting the plaintiffs' claims in part.

The court found that "although the sales agent's staff did not enable the plaintiffs to inspect the units directly at the sales consultation or at the time of contracting, they did not accurately explain the presence, location and footprint of the columns, or the presence and location of the fire hydrants and ventilation shafts."

The plaintiffs were accordingly able to recover more than KRW 700 million in total from the housing association in restitution of unjust enrichment, damages and statutory interest. This matter is a very exceptional one, in that cases recognizing termination of a retail unit pre-sale contract for false and exaggerated advertising by a housing association and its sales agent are rare.

Drawing on deep expertise and extensive experience, Law Firm Changchun made and proved its case actively — through the advertising materials the sales agent had distributed, staff testimony and site inspection — and so obtained this landmark judgment.

Law Firm Changchun undertakes to deliver the greatest possible benefit to our clients even in matters with little precedent, on the strength of that deep expertise and extensive experience.

Case articles are anonymized within the scope of client consent and are provided for general information only, not as legal advice on any specific matter. Outcomes may differ depending on the facts of each case.