Asking for arbitration regarding contract breach damages arising from the cancellation of foreign travel-related contract caused by COVID-19 게시글 상세보기 - 등록일, 조회수, 첨부파일, 상세내용, 이전글, 다음글 제공
Asking for arbitration regarding contract breach damages arising from the cancellation of foreign travel-related contract caused by COVID-19
Date
2021-07-16
Hit
789
On January 8, 2020, the Petitioner signed a foreign travel-related contract (“contract in question”) with the Respondent as follows and made a lump sum payment with credit card on the same day:
ㅇ Travel package name: Five Days in Boracay Resort
ㅇ Number of travelers: Four
ㅇ Dates: 1.30.2020 - 2.3.2020 (five days)
ㅇ Price: 709,000 won/person; 2,836,000 won in all
On January 14, 2020, the Respondent delivered the travel contract stating the special terms and conditions to the Petitioner in the form of an electronic document, and the Petitioner consented to the document on the same day.
ㅇ Content of special terms and conditions: “Compensation equivalent to 90% of the price in the event of a notice of cancellation given at least one day before the start of the scheduled travel”
On January 29, 2020, i.e., one day before the start of the scheduled travel, the Petitioner asked the Respondent for cancellation of the contact in question due to fear of COVID-19.
The Respondent informed the Petitioner that 90% of the price would be collected as cancellation charge as per the special terms and conditions and returned 283,600 won (10% of the price) to the Respondent on January 29, 2020.
A. According to the Petitioner
ㅇ “We could not expect to achieve the purpose of travel due to fear of COVID-19. The Respondent did not make a separate explanation on the special terms and conditions. The Respondent should return the balance of the price paid excluding the 30% that needs to be deducted under the Dispute Resolution Criteria.”
B. Accroding to the Respondent
ㅇ“ We paid airplane/hotel expenses for the package, which exceeded 90% of the price. We cannot make further refund.”
The contract in question is about the Respondent providing the Petitioner with transportation, lodging, and sightseeing, falling under the category of a tour contract stipulated in Article 674-2 of the Civil Act, and it allows the Petitioner to cancel the contract before departure at any time under Article 674-3 of the Civil Act. The Petitioner expressed its intention of canceling the contract on January 29, 2020, and the contract in question was canceled legitimately. The Petitioner has the responsibility of making up for the loss incurred by the Respondent.
As for the cancellation charge-related terms and conditions of the contract in question, the contract in question stipulates that the Petitioner pay 90% of the price in the event of a notice on cancellation one day before departure, but said terms and conditions appear to be invalid under Article 8 of the Act on the Regulation of Terms and Conditions as it imposes excessive loss compensation burden on the Petitioner considering the following facts: the cancellation of the contract in question was due to the spread of COVID-19 worldwide; the Consumer Dispute Resolution Criteria, which were established for the amicable resolution of disputes under Article 16(2) and (3) of the Framework Act on Consumers and Article 8 of its Enforcement Decree, stipulate that 30% of the travel package price be paid in the event of cancellation at least one day before departure.
Such being the case, setting the loss compensation that the Petitioner should pay at 850,800 won, i.e., 30% of the travel package price is thought to be reasonable in consideration of the following: that is what is said by the Consumer Dispute Resolution Criteria; the WHO declared the current COVID-19 a pandemic (the highest possible level of infectious disease) on March 11, 2020; the destination countries of said travel package included in the contract in question did not impose an entry ban on those from outside prior to the declaration of the pandemic; and the indemnity stipulated in Article 16(2) of the Standard Terms and Conditions for Foreign Travel can hardly be said to be applicable based on the fact that both the date of the Petitioner’s cancellation (1.29.2020) and the first day of the scheduled travel package (1.30.2020) precede the WHO’s declaration of the pandemic.
Accordingly, the Respondent should return 1,985,200 won to the Petitioner after deducting 850,800 as loss compensation from the travel package price of 2,836,000 won. As the Respondent has already returned 283,600 won, the amount that it should now return comes to 1,701,600 won.
The Respondent should return the sum of 1,701,600 won to the Petitioner by October 20, 2020, with delay penalty accruing at the rate of 6% per annum as stipulated in Article 54 of the Commercial Act from said deadline until full payment in the event of the Respondent’s delay in returning said sum.
1. The Respondent shall pay 1,701,600 won to the Petitioner by October 20, 2020.
2. The Respondent shall pay delay penalty accruing at the rate of 6% per annum as stipulated in Article 54 of the Commercial Act from said deadline until full payment in the event of the Respondent’s delay in returning the sum stated in 1 above.
