Real Estate Sales Contract Clauses 21-23
Article 21: Agreement on the Court of Jurisdiction
The Seller and the Buyer shall submit to the exclusive jurisdiction of the court having jurisdiction over the location of the Property in the event of any dispute arising in connection with this Contract.
Article 22: Obligations to discuss matters not stipulated in this Contract
Matters not stipulated in this Contract shall be discussed in good faith between the Seller and the Buyer in accordance with the Civil Code, other relevant laws and regulations, and the practices of real estate transactions.
Article 23: Exclusion of anti-social forces
1. The Seller/Buyer shall make the following covenants to the other party:
(1) The Seller/Buyer is not a member of a crime syndicate or a company affiliated with a crime syndicate, a "sokaiya" corporate racketeer, or a member of any such organization (hereinafter collectively referred to as "anti-social forces").
(2) The corporate associates (i.e., employees, directors, executive officers, or any such persons who engage in business operations) are not anti-social forces.
(3) The Buyer/Seller shall not allow anti-social forces to use his/her own name to sign this Contract.
(4) The Seller and the Buyer shall not, until the completion of both the delivery of the Property and the payment of the purchase price, engage in any of the following acts in connection with this Contract, either by themselves or by using a third party.
a. the use of threatening words/actions or violence against the other party
b. acts that obstruct the other party's business or damage the other party's credibility by using deceptive means or force
2. Either the Seller or the Buyer may cancel this Contract without notice in any of the following cases:
a. If it is found that either party has made a declaration contrary to the pledge in (1) or (2) of the preceding paragraph.
b. If it is found that the contract was signed in violation of the pledge set forth in the preceding paragraph (3)
c. If either party engages in acts that violates the pledge set forth in the preceding paragraph (4)
3. The Buyer shall assure the Seller that the Buyer will not use the Property as an office or other base of activities for anti-social forces, either by themselves or by a third party.
4. The Seller may terminate this Contract without any notice if the Buyer acts in violation of the preceding paragraph.
5. If this Contract is terminated pursuant to the provisions of Paragraph 2 or Paragraph 4, the terminated party shall pay to the other party an amount equivalent to 20% of the purchase price as a penalty (pre-determined compensation for damages).
6. If this Contract is terminated pursuant to the provisions of Paragraph 2 or Paragraph 4, the terminated party may not make any claim against the other party for any damages arising from the termination.
7. In the event of termination of this Contract pursuant to Paragraph 2 or 4, the provisions of Paragraphs 2, 4, 5 and the preceding Paragraph shall apply to the termination and penalty fee, and Article 16 shall not apply.
8. If the Buyer violates the provisions of Paragraph 3 and is found to have used the Property as an office or other base of activities of anti-social forces, and if the Seller cancels this Contract pursuant to Paragraph 4, the Buyer shall pay to the Seller, in addition to the penalty in Paragraph 5, a penalty equivalent to 80% of the purchase price as a sanction. However, this paragraph shall not apply when a real estate agent acts as the seller himself/herself and a person who is not a real estate agent acts as the buyer.
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Arrows International Realty Corp.