Contract penalty clauses and lump sum indemnity in the construction agreement in return for land share

The contract for construction in exchange for land share is a dual-type mixed contract in which the contractor commits to building and delivering the structure, and the landowner, in return, commits to transfer specific land shares to the contractor. However, to prevent the contractor from failing to fulfill or delaying the delivery obligation of the construction, and to compensate the the landowner's losses, penalty clauses and lump-sum compensation are included in the contracts. Due to the confusion between penalty clauses and lump sum indemnities in contract records, the purpose of this study is to comprehend the conditions, qualities, and differences of penalty clauses and lump sum indemnities in land share agreement construction contracts. In the first part of our study, construction contracts for land share were generally examined. In the second part of the study, penalty clauses were examined, and in the third part, by discussing the lump-sum compensation the differences between lump-sum compensation and penalty clauses were analyzed in light of doctrine and judicial decisions.