1. Case Overview
The client entered into a real estate sales entrustment contract with the opposing party (a sales agency) to perform sales and leasing tasks. The client successfully sold units to purchasers and secured lease agreements for those units. However, purchasers who were unaware of the existing lease agreements signed new contracts with different tenants, causing a dispute. Consequently, the opposing party terminated the lease agreements, paid penalties, and sued the client for 210 million KRW in damages. The client partially lost in the first trial.

2. Unique Aspects of the Case
While an entrusted party owes a duty of care of a good manager, they must primarily follow the explicit instructions of the mandator. The core of the defense was proving that the client’s failure to notify the purchasers about the lease agreements was not an independent action but resulted from the explicit and specific instructions of the opposing party

3. Attorney Assistance

Following the partial loss in the first trial, Law Firm Theo's legal team comprehensively reanalyzed extensive data for the appeal. We actively presented objective evidence to the court, such as KakaoTalk logs and call recordings showing the opposing party repeatedly and strictly instructing the client, "There is no need to tell the purchasers" and "Do not tell them." We strongly argued that the client held no liability whatsoever.

 

4. Result of Assistance
The appellate court fully accepted Law Firm Theo's arguments and recognized the relationship of instruction and obedience between the opposing party and the client. As a result, the court completely overturned the portion of the first trial's judgment against the client and fully dismissed the opposing party's claim for damages, securing a complete victory.

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