b/ Upon a substantial breach of contractual obligations by a party.

#### Article 313.- Cancellation of contracts in case of delivery of goods or provision of services in installments

- 1. Where there is an agreement on delivery of goods or provision of services in installments, if one party fails to perform its obligation for the delivery of goods or provision of services and such failure constitutes a substantial breach in that time of delivery of goods or provision of services, the other party shall have the right to declare the cancellation of the contract for such delivery of goods or provision of services.
- 2. Where the failure of a party to perform its obligation for a delivery of goods or a provision of services serves as the basis for the other party to conclude that a substantial breach of the contract shall happen in subsequent deliveries of goods or provisions of services, the aggrieved party shall have the right to declare the cancellation of the contract for subsequent deliveries of goods or provisions of services, provided that such party must exercise that right within a reasonable period of time.
- 3. Where a party has declared the cancellation of a contract for a single delivery of goods or provision of services, such party shall still have the right to declare the cancellation of the contract for a delivery of goods or provision of services that has been conducted or will be conducted subsequently if the interrelation between the deliveries of goods makes the delivered goods or provided services unable to be used for the purposes intended by the parties at the time they enter into the contract.

#### Article 314.- Legal consequences of cancellation of contracts

- 1. Except for cases specified in Article 313 of this Law, following the cancellation of a contract, such contract shall be invalid from the time it is entered into, and the parties shall not have to continue performing their contractual obligations, except for their agreements on their post-cancellation rights and obligations and resolution of disputes.
- 2. The parties shall have the right to claim benefits brought about by their performance of their contractual obligations. Where both parties have indemnity obligations, their obligations must be performed concurrently. Where it is impossible to make the indemnity with benefits which one party has enjoyed, the obliged party must make the indemnity in cash.
- 3. Aggrieved parties are entitled to claim damages according to the provisions of this Law.

#### Article 315.- Notification of suspension of performance of contracts, stoppage of performance of contracts or cancellation of contracts

A party that suspends the performance of a contract, stops the performance of a contract or cancels a contract must immediately notify the other party of such suspension, stoppage or cancellation. Where a failure to do so causes a loss to the other party, the party that suspends the performance of the contract, stops the performance of the contract or cancels the contract must pay damages.

#### Article 316.- Right to claim damages when other remedies have been applied

A party shall not lose its right to claim damages for the loss caused by a contract breach by the other party when other remedies have been applied.