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Open Decision Ledger · Civil obligations & remedies

Termination of an entrustment contract despite the agreed grounds

Supreme Court, Apr. 2, 2026, 2025Da219495 (judgment)

Case name: 업무대행자지위확인등[위임계약에서 신뢰관계 파탄을 이유로 해지를 주장하는 사건]

Official text on the National Law Information Center

  1. Question

    May the parties exclude Article 689(1) and (2) of the Civil Code by agreement, so that an entrustment contract can be terminated only through the agreed grounds and procedure, and can the counterparty nonetheless terminate the contract where those grounds are absent but the trust underpinning it has broken down?

  2. Holding

    Yes. Article 689(1) and (2) of the Civil Code are optional rules, so the parties may exclude them or vary their content, and unless there are special circumstances making the statute apply alongside the agreement, the contract can be terminated only through the agreed grounds and procedure, and the parties' liability for damages is governed by what they agreed. Even so, where a continuous contract founded on special trust is broken down by a party's breach of a contractual duty or other improper act, so that the contract cannot simply be maintained, the counterparty may terminate it and extinguish its effect for the future.

    Summary of the holding, verbatim

    민법 제689조 제1항, 제2항은 임의규정에 불과하므로 당사자의 약정에 의하여 위 규정의 적용을 배제하거나 내용을 달리 정할 수 있다.

    Unofficial English translation

    Article 689 (1) and (2) of the Civil Act are merely default provisions, and therefore the parties may, by agreement, exclude the application of said provisions or stipulate different content.
  3. Disposition

    Dismissed Stated in the decision

    상고를 모두 기각한다. 상고비용 중 원고의 상고로 인한 부분은 원고가, 피고의 상고로 인한 부분은 피고가 각각 부담한다.

    Unofficial English translation

    All appeals are dismissed. Of the court costs on appeal, the plaintiff shall bear the portion attributable to the plaintiff's appeal, and the defendant shall bear the portion attributable to the defendant's appeal, respectively.
  4. Form of the test

    Elements stated Stated in the decision

    그와 같은 위임계약의 존속 중 당사자 일방의 계약상 의무 위반이나 그 밖의 부당한 행위 등으로 인하여 위임계약의 기초가 되는 신뢰관계가 파탄상태에 이르러 계약관계를 그대로 유지하기 어려운 정도에 이르렀다면 상대방은 이를 이유로 계약관계를 해지함으로써 장래에 향하여 그 효력을 소멸시킬 수 있다고 봄이 상당하다.

    Unofficial English translation

    If, during the subsistence of such a mandate contract, due to a breach of contractual obligation by one party or other unjust act, etc., the relationship of trust underlying the mandate contract has reached a state of breakdown to the extent that it is difficult to maintain the contractual relationship as it stands, it is reasonable to view that the other party may, on that ground, terminate the contractual relationship, thereby extinguishing its effect for the future.
  5. Factors

    • 민법 제689조 제1항, 제2항은 임의규정에 불과하므로 당사자의 약정에 의하여 위 규정의 적용을 배제하거나 내용을 달리 정할 수 있다
    • 당사자 일방의 계약상 의무 위반이나 그 밖의 부당한 행위 등으로 인하여
    • 위임계약의 기초가 되는 신뢰관계가 파탄상태에 이르러
    • 계약관계를 그대로 유지하기 어려운 정도에 이르렀다면
    • 당사자 사이의 특별한 신뢰관계를 기초로 하는 계속적 계약으로서 위임의 성격을 고려하면

    Unofficial English translation

    • Article 689 (1) and (2) of the Civil Act are merely default provisions, and therefore the parties may, by agreement, exclude the application of said provisions or stipulate different content

    • due to a breach of contractual obligation by one party or other unjust act, etc.

    • the relationship of trust underlying the mandate contract has reached a state of breakdown

    • to the extent that it is difficult to maintain the contractual relationship as it stands

    • considering the nature of the mandate as a continuing contract founded upon a special relationship of trust between the parties

  6. Relation to precedent

    Follows earlier decisions Stated in the decision

    대법원 2019. 5. 30. 선고 2017다53265 판결(공2019하, 1300)

    Unofficial English translation

    Supreme Court Decision 2017Da53265 decided May 30, 2019 (Gong 2019 Ha, 1300)

    Decisions referred to

    대법원 2019. 5. 30. 선고 2017다53265 판결(공2019하, 1300)

  7. Burden of proof

    Not addressed Not in the decision

  8. Open question and revisit condition

    How grave must a breach of duty or other improper act be before the trust underlying a housing cooperative's business agency contract counts as broken down, given that the agreed grounds were absent here?

    A later decision setting a different threshold for the breakdown of trust, or a record showing whether the rebate was attributable to the plaintiff as the contracting party, would require this entry to be read again. Any amendment to Article 689 of the Civil Code would change the premise that the provision is an optional rule.

Cross-family AI independent reading & axis check

7 of 8 axes matched GPT-6 Astra (OpenAI, codex CLI) · 2026-10-24

A reader from another model family (GPT-6 Astra), given the official text but not the primary reading, agreed on 7 of the 8 axes; the readings differed on axis 8 (open question and revisit condition).

Axis 8 (Open question and revisit condition): Primary “How grave must a breach of duty or other improper act be before the trust underlying a housing cooperative's business agency contract counts as broken down, given that the agreed grounds were absent here?” vs Independent “What specific circumstances justify applying Article 689(1) and (2) independently despite the agreed termination and damages provisions?”

The primary asks how grave a breach must be to count as broken trust, while the independent asks what special circumstances justify applying Article 689 separately.

민법 제689조 제1항, 제2항은 임의규정에 불과하므로 당사자의 약정에 의하여 위 규정의 적용을 배제하거나 내용을 달리 정할 수 있다.

Raw responses and comparison record: Protocol · Blind readings (JSONL) · Axis comparison (JSONL) · SHA-256 (JSON)

Lower-court contrast & scope of application

Lower-court reading vs. Supreme Court holding

Lower-court context: The Suwon High Court, in its judgment of 23 October 2025 (2023Na20705), held that this business agency contract is analogous to an entrustment and that Article 13 of the contract conditions and Article 42 of the defendant cooperative's bylaws provide grounds, procedure and liability differing from Article 689(1) and (2) of the Civil Code, so the contract could not be terminated otherwise than through those agreed grounds, none of which the defendant had established. It nevertheless found that the plaintiff's employee had inflated the price of a promotion-hall construction contract between the defendant cooperative and A counterparty and received a KRW 90 million rebate, breaching the duty of care owed to the cooperative, so that the trust underlying the contract had broken down, the plaintiff's performance could no longer be expected and a serious change of circumstances made the contract impossible to maintain; the defendant's notice of termination therefore terminated the contract lawfully. On the money side it ordered the defendant to pay KRW 827,400,000 and interest, being 80% of the total agency fee plus value-added tax, less the sum the plaintiff admitted receiving, after setting off the defendant's KRW 90 million damages claim, and it rejected the claim to confirm the plaintiff's status as business agent.

Supreme Court standard: The Supreme Court found no error. Even though Article 13 of the contract conditions and Article 42 of the bylaws provided grounds and procedure differing from Article 689 of the Civil Code, terminating the contract on the ground that the plaintiff's employee had taken an unlawful rebate and the trust had broken down was lawful, so the reasoning did not breach the rules on the termination of an entrustment and the breakdown of trust. It likewise upheld the ruling on the agency fee and the set-off, and dismissed both parties' appeals. The defendant's argument that there was no interest in confirming the plaintiff's status as business agent was not a proper ground of appeal, since the defendant had appealed only the part of the judgment where it was the losing party and had not appealed the dismissal of that confirmation claim.

Distinguishing conditions

  • A case in which no contractual duty breach or other improper act has taken the trust underlying the contract to a state of breakdown.
  • A case in which special circumstances exist, so that Article 689(1) and (2) of the Civil Code apply independently alongside the agreement rather than being displaced by it.
  • A case in which the person invoking the breakdown of trust is not the counterparty under the contract, so that the right to terminate for the future is not that person's.

Record verification notes

Read Article 13 of the contract conditions and Article 42 of the cooperative's bylaws against Article 689(1) and (2) of the Civil Code first, since the whole construction turns on whether they provide different grounds and procedure and whether any special circumstance keeps the statute in play. Then collect what attributes the employee's rebate to the contracting party and what shows the trust could no longer be maintained. Finally check the money arithmetic: 80% of the total agency fee plus value-added tax, less the payments the plaintiff admitted receiving and the KRW 90 million set off.

From the official text

Points at issue

당사자가 위임계약을 체결하면서 민법 제689조 제1항, 제2항과 다른 내용으로 해지사유 및 절차, 손해배상책임 등을 정한 경우, 약정에서 정한 해지사유 및 절차에 의하지 않고는 계약을 해지할 수 없고 손해배상책임에 관한 당사자 간 법률관계도 약정이 정한 바에 의하여 규율되는지 여부(원칙적 적극) / 위와 같은 약정에서 정한 해지사유가 존재하지 않는다고 하더라도, 당사자 일방의 계약상 의무 위반이나 그 밖의 부당한 행위 등으로 인하여 위임계약의 기초가 되는 신뢰관계가 파탄상태에 이르러 계약관계를 그대로 유지하기 어려운 경우, 이를 이유로 계약관계를 해지할 수 있는지 여부(적극)

Unofficial English translation

Where the parties, upon entering into a mandate contract, stipulated the grounds for termination and procedure, liability for damages, etc. differently from Article 689 (1) and (2) of the Civil Act, whether the contract may not be terminated otherwise than in accordance with the grounds for termination and procedure set forth in the agreement, and whether the legal relationship between the parties concerning liability for damages is also governed by what the agreement provides (in principle, affirmative) / Even where the grounds for termination set forth in such an agreement do not exist, whether, in a case where, due to a breach of contractual obligation by one party or other unjust act, etc., the relationship of trust underlying the mandate contract has reached a state of breakdown to the extent that it is difficult to maintain the contractual relationship as it stands, the contractual relationship may be terminated on that ground (affirmative)

Summary of the holding

민법 제689조 제1항, 제2항은 임의규정에 불과하므로 당사자의 약정에 의하여 위 규정의 적용을 배제하거나 내용을 달리 정할 수 있다. 따라서 당사자가 위임계약을 체결하면서 민법 제689조 제1항, 제2항에 규정된 바와 다른 내용으로 해지사유 및 절차, 손해배상책임 등을 정하였다면, 민법 제689조 제1항, 제2항이 이러한 약정과는 별개 독립적으로 적용된다고 볼 만한 특별한 사정이 없는 한, 약정에서 정한 해지사유 및 절차에 의하지 않고는 계약을 해지할 수 없고, 손해배상책임에 관한 당사자 간 법률관계도 약정이 정한 바에 의하여 규율된다고 봄이 타당하다. 다만 위와 같은 약정에서 정한 해지사유가 존재하지 않는다고 하더라도, 당사자 사이의 특별한 신뢰관계를 기초로 하는 계속적 계약으로서 위임의 성격을 고려하면, 그와 같은 위임계약의 존속 중 당사자 일방의 계약상 의무 위반이나 그 밖의 부당한 행위 등으로 인하여 위임계약의 기초가 되는 신뢰관계가 파탄상태에 이르러 계약관계를 그대로 유지하기 어려운 정도에 이르렀다면 상대방은 이를 이유로 계약관계를 해지함으로써 장래에 향하여 그 효력을 소멸시킬 수 있다고 봄이 상당하다.

Order

상고를 모두 기각한다. 상고비용 중 원고의 상고로 인한 부분은 원고가, 피고의 상고로 인한 부분은 피고가 각각 부담한다.

Unofficial English translation

All appeals are dismissed. Of the court costs on appeal, the plaintiff shall bear the portion attributable to the plaintiff's appeal, and the defendant shall bear the portion attributable to the defendant's appeal, respectively.

Provisions referred to

민법 제2조, 제105조, 제680조, 제681조, 제689조

Read 2026-10-24 · Cross-read 2026-10-24. All quotes matched against the official text. The Chinese-character placeholders the court used for anonymised parties are given in their Korean readings, and parenthetical Chinese-character glosses are omitted.

Every entry is published only after all quotes have been matched character by character against the official text, and audited by an independent second reading from a different model family across all eight axes. Both agreed axes and text-grounded interpretive divergences are recorded openly. The ledger is a research record, not an assessment of the court or advice on any matter.

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