Sales Contract Cancellation Penalty Calculator

Sales Contract Cancellation Penalty Calculator helps estimate Korea-related property dispute, penalty, fraud, recovery, or contract-risk exposure in English.

Sales contract cancellation penalty calculator

Uses the Korean real-estate sales contract model for Civil Act Article 565 deposit forfeiture, seller double-return, custom penalty clause, and other-income withholding.

Korean source inputs

Agreed deposit

₩50,000,000

Contract deposit basis used by the Korean formula.

Penalty amount

₩50,000,000

10% of sale price.

Breacher loss

₩50,000,000

Selected party scenario.

Seller total payment

₩0

Deposit return plus penalty when seller cancels.

Withholding tax

₩8,250,000

Other-income tax estimate for penalty recipient.

Haeyak rescission

Yes

Unavailable after performance has started.

This English calculator calls the same pure real-estate calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic stub.

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Sales contract cancellation penalty calculator

This page translates the Korean real-estate sale cancellation guide for contract deposit, buyer forfeiture, seller double-return, custom penalty clauses, and tax on penalty money.

Civil Act deposit rule

Civil Act Article 565 is the core rule in the Korean source. If no different agreement exists and performance has not started, the buyer can give up the contract deposit and the seller can cancel by returning double the contract deposit.

If performance has already started, such as an intermediate payment, unilateral rescission based only on the contract deposit becomes restricted. The calculation therefore exposes the performance-started flag separately.

Penalty and tax

The model can use the contract deposit itself or a custom penalty clause based on sale price or a deposit multiple. It also flags excessive penalty pressure when the rate is over 20 percent of the sale price.

Penalty money received as other income is modeled with 22 percent withholding for separate taxation when the total other-income threshold allows it. If the threshold is exceeded, the calculator estimates comprehensive taxation using the selected marginal rate plus local surtax.

Practical use

Use the result with the signed contract, deposit receipt, payment schedule, special clauses, messages, and evidence of performance. The estimate is a Korean contract-cost scenario, not a substitute for legal review in a cancellation dispute.