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TITLE [Price of Sale]Supreme Court Decision 2004Da26119 Delivered on August 25, 2006 [full Text]
Summary
[1] Where an international business contract containing extension of credit includes a provision that a contracting party, the subsidiary, states the parent company¡¯s share ratio and approval of the execution of the contract, whether the subsidiary¡¯s intent can be interpreted as representing the parent company to execute the contract as the parent company's agent (negative) [2] In an international financial transactions where a subsidiary assumes the obligation of payment, where the parent company did no more than delivering to the lender a document that acknowledges the ownership of shares in the subsidiary and the knowledge or recognition of the subsidiary's execution of the contract, whether this transaction can be interpreted as the execution of the contract by the subsidiary acting for the parent company as its agent, or the parent company's guaranteeing of the subsidiary's contractual obligations (negative) [3]The elements for establishing an abuse of corporate entity in the case where the parent company asserts an independent legal personality of its subsidiary [4]Whether the ""person who ordered to execute a work"" under Article 401-2 Paragraph (1) Item 1 of the Commercial Code includes a dominant company, which is a legal person (affirmative) and whether a simple delay of payment of corporate debt constitutes an act of neglect of duty provided in Article 401 of the Commercial Code (negative)
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