A company that did not pay due to incorrect cost calculation... Court: “The amount requested is justified”

If there was no separate protest regarding the amount requested, the court ruled that the amount in question must be paid in full.

On November 5 last year, the Seoul Central District Court ruled in favor of the plaintiff in the product price lawsuit filed by supplier company A against seller company B.

The two companies signed a product supply contract in October 2022. Delivery was carried out in two stages, and Company A charged a total of approximately 79 million won.

The problem arose when company B did not pay. This is because Company A unilaterally prepared an estimate and set the price, and did not even present a detailed estimate. He then argued that the amount charged by Company A was unjustified because most of the goods initially supplied were defective.

Company A refuted this. Although a separate contract was not written, an agreement was reached between the two companies on the unit price of supply at the time of signing. He also emphasized that all defective products were returned and resupplied as new products, and that payment was requested several times for a specific amount.

The court ruled in Company A’s favor. The court said, “Company A failed to make payment after the second delivery, so it specified the amount as 79 million won and urged it several times,” adding, “Company B continued to delay repayment due to difficult circumstances.”

He continued, “During this process, Company B did not protest due to excessive quotation and defective products, etc.” and determined that the unpaid product price was 79 million won.

Lee Ki-eun, a lawyer at Daeryun Law Firm who represented Company A, said, "Company A notified Company B, which was delaying payment, that it had issued a tax invoice specifying the price of the goods. Since Company B also recognized this and expressed its intention to repay the amount, it appears that the amount requested by Company A was fully acknowledged."

Reporter Hwang Jeong-won (jwhwang@mt.co.kr)

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Company that did not pay, claiming cost calculation was wrong... Court: “The amount requested is justified” (Shortcut)