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TITLE Supreme Court Order 2009Ma461 Dated July 16, 2012[Immediate Reappeal against Order of Voluntary Auction of Ship] [full Text]
Summary
[1] Where a ship agency with a domestic business place formed a ship agency contract with the foreign ship owner, etc. and did not designate the applicable law, the law applicable to rights and duties of the above contract (=law of the Republic of Korea where a ship agency has a business place) [2] The legal nature of agreement to pay obligation arising from a contract which a ship agency makes as its owner's agent generally as agency in lieu of ship owner with its own property and whether the ship agency's payment under the agreement with its own property constitutes ""the third person's payment"" (affirmative in principle) [3] The meaning of ""a person who has a legitimate interest to make a payment"" who is entitled to constructive subrogation under Article 481 of the Civil Act and whether a performance assumer constitutes ""a person who has a legitimate interest to make a payment"" (affirmative) [4] The case holding that the court below erred in the misapprehension of legal principle on the ground that where the ship agency agreement between domestic Gap corporation. operating a ship agency business and ship charterer US corporation Eul Co. was made where Eul Co. shall pay navigation expenses, etc. for ship's entry.departure but Gap Co. shall pay them first in lieu of Eul Co. to obligee, if Gap Co. paid with own money under the performance assumption agreement, Gap Co. is subrogated to the rights to navigation expenses, etc. by the operation of law, but the court below held otherwise
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