Some clarification for everyone given the amount of stupid posts we’ve seen going around by people who don’t know what they’re talking about which are unfortunately being spread to other people who take it as fact.telekineticwind pay attention.

Civil Act of South Korea, Part III: Claims, Chapter 2: Contract, Section 1: General Provisions, Sub-Section 3: Rescission for the Future and Rescission of Contract.
Article 550 (Effect of Rescission for Future):
"If one of the parties rescinds a contract for the future, the contract shall lose its effect for the future."

According to the ruling with the JYJ case all artist contracts carry a right of rescission.If SM Ent were writing contracts without the right of rescission in them they’d be in direct violation of the court orders from JYJ vs. SM Ent. Therefore, their contracts cannot possibly be valid without SM Ent. violating previous court rulings.

For all you people out there who think Luhan and Kris are still held under contract with SM Entertainment, please take some time to read the law before you make a fool of yourself.

Their contracts froze the instant their validity came into question through the courts. Particularly through nullification. Luhan and Kris are both free to continue any activity outside of SM. 

As for morally, yes, I’m totally sure Kris and Luhan trained under the company for 10 years combined in a different country, just to get famous for the sake of being famous in their own home country. Totally.

The fact that mediation is continuing to take place when it should have moved on by now eiher means they’re constantly deferring it or both Kris and Luhan have a decent case on their hands that is taking longer to sort out. Judging by SM Ent’s two latest hissy fits, their last mediation didn’t rule so well in their favor.

It’s probably worth mentioning the benefit for the company behind this regardless of outcome, the tax payoff would be huge, which is why they’re refusing to settle. 

Frankly, their reputation is coming off worse than Luhan and Kris’s combined not to mention the constant stock drops each time they make a statement. TAX. PAY. OFF. They’ll get millions for this regardless.

As for the statement released, it’s a blatant lie, just like the last one. Which one are you likely to believe, a statement by a random unnamed representative released specifically to target Kris and Luhan as the offenders in attempts to destroy their reputation, or the actual law system of the country the lawsuits are filed under?

Furthermore, the fact the latest lawsuits were filed in Shanghai and Hong Kong prove that these lawsuits have nothing to do with contract effect because neither Shanghai or Hong Kong have jurisdiction over Korean contracts.

You’re welcome.

Courtesy of kainae - caris-matic - daddy-yifan