Continuing contract

A continuing contract (계속적 계약/繼續的契約) is referred to a contract whose performance shall be continued for a certain period of time.

If such performance of a contract is completed by one time, the contract is regarded as one-time contract (일시적 계약/一時的契約). The continuity of performance depends on circumstances case by case. There are marginal cases. Borrowing a book for one day cannot be governed by the rules on loan for use as a continuing contract.

Key words
continuing contract, continuity, termination, changed circumstances, supply contract

Examples
The examples of a continuing contract under the Civil Act are, among others, as follows:
 * Loan for consumption (소비대차/消費貸借) Article 598.
 * A loan for consumption becomes effective when one of the parties agrees to transfer the ownership of money, or any other substitute, to the other party, and the other party agrees to return the same amount of money or the same kind, quality, and quantity of any substitute therefor.


 * Loan for use (사용대차/使用貸借) Article 609.
 * A loan for use becomes effective when one of the parties agrees to deliver an object to the other party for his gratuitous use, and the taking of profits therefrom, and when the other party agrees to return such object after having used and taken profits therefrom.


 * Lease (임대차/賃貸借) Article 618.
 * A lease becomes effective when one of the parties has agreed to allow the other party to use an object and take profits therefrom, and the latter has agreed to pay rent for it.


 * Employment (고용/雇傭) Article 655.
 * A contract of employment becomes effective when one of the parties agrees to render services to the other party and the latter agrees to pay the former remuneration therefor.


 * Mandate (위임/委任) Article 680.
 * A mandate shall become effective when one of the parties has entrusted the other party with the management of affairs and the other party has consented thereto.


 * Bailment (임치/任置) Article 693.
 * Bailment shall become effective when one of the parties has committed to the other party the custody of money, securities or any other things, and the other party has consented thereto.


 * Partnership (조합/組合) Article 703.
 * A partnership shall become effective when two or more persons have agreed to carry on a joint undertaking by making mutual contribution thereto.
 * The contribution mentioned [above] may be made in cash or in kind such as other property or labor service.


 * Life annuity (종신정기금/終身定期金) Article 725.
 * A contract of life annuity shall become effecitve when one of the parties has agreed to deliver money, or other thnks, periodically to the other party or to a third person, until the end of his life or that of the other party or the third person.

Characteristics
A continuing contract is characterized by:
 * Two kinds of claims: one is the individual claim which occurs periodically or repetitively, and another is the basic claim.
 * The parties are entitled to terminate the contract for the future not retrospectively. Article 550 of the Civil Act.
 * As the contractual relations are based upon mutual trust and reliability, "who is the party?" is of utmost importance. That's why sublease and assignment of lease are subject to the consent of the lessor. Article 629 of the Civil Act.
 * In view of the long life of a continuing contract, an unexpected event or change of economic circumstances may affect the contract. See "Change in circumstances doctrine or clausula rebus sic stantibus" (사정변경/事情變更의 원칙).


 * When a continuing contract gives rise to the relationship of control and obeyance owing to the disparity of economic powers, there is legislative needs for a special law such as the Housing Lease Protection Act, the Labor Standards Act, etc.

Continuing supply contract
A continuing supply contract (계속적 공급계약/繼續的供給契約) is the contrct to supply gas, water, electric power, etc. continuously for price for a certain or indefinite period of time. It is arguable whether the nature of such continuing supply contract is a continuing contract or a continued one-time contract.

Considering such characteristics as the necessity for termination and change of circumstances, it must be a kind of continuing contract.