When an individual in Japan is asked to guarantee a debt incurred by a business—whether that business is run by a family member, a friend, or is a company they are associated with—they are often taking on substantial financial risk with limited visibility into the true financial health

Historically, individuals in Japan—often family members, friends, or even company directors in their personal capacity—have provided personal guarantees for business-related debts, sometimes leading to severe financial hardship and personal ruin if the business failed. Recognizing this significant social issue, the Japanese Civil Code was reformed (effective April 1,

In many ongoing business relationships, such as continuous supply agreements, credit lines, or commercial leases, obligations arise not as a single, fixed debt, but as a series of future or fluctuating liabilities. To secure these types of indefinite obligations, Japanese law utilizes a specific form of guarantee known as a

When a creditor in Japan seeks to secure an obligation, particularly a significant one, they often request a guarantee. While a "simple" or "ordinary" guarantee (futsu hosho 普通保証) provides a layer of security, a far more potent and commonly utilized instrument is the "Joint and

When a guarantor in Japan steps in and pays a debt on behalf of a principal debtor who has defaulted, the guarantor is not left out of pocket without recourse. Japanese law provides such a guarantor with a "Right of Reimbursement" (Kyushoken 求償権) against the principal debtor. This

Guarantee obligations, or Hosho Saimu (保証債務) as they are known in Japan, are a cornerstone of personal security in Japanese commercial and private transactions. When a party (the guarantor) undertakes to be responsible for the debt of another (the principal debtor) should the latter default, a specific set of rights

In many contractual situations, the subject matter of an obligation can be neatly divided – for example, a monetary debt can be paid in parts, or a quantity of generic goods can be delivered in installments. These are "divisible" obligations or claims. However, Japanese law also provides specific rules

When a single debt or obligation is owed by a debtor to multiple creditors, the legal relationship can become complex. How can the debtor validly discharge the obligation? What are the rights of each creditor? Japanese law provides specific frameworks for managing such situations, primarily through the concepts of "

When extending credit or entering into significant contractual arrangements in Japan, creditors often seek enhanced security for the performance of obligations. One common and powerful mechanism for achieving this is through "Joint and Several Obligations," known in Japanese as Rentai Saimu (連帯債務). This legal structure, governed by Article

Your company has a valuable contract with a Japanese counterparty, but a third party – perhaps a competitor or another entity – takes actions that disrupt this contractual relationship, causing your counterparty to breach their obligations to you. Can you hold this interfering third party legally responsible for the losses you suffer?

In the lifecycle of a business, situations often arise where a company needs to transfer not just an isolated right (like a receivable) or a specific obligation, but its entire position under an ongoing contract to another party. This could occur during a business sale, corporate restructuring, or when a

In various business scenarios—such as corporate restructuring, financing arrangements, or simple third-party willingness to help—the question of transferring or sharing an existing debt arises. Japanese law provides a formal mechanism for this known as "Saimu Hikiuke" (債務引受 – Assumption of Obligation). This process allows a third party

You've taken an assignment of a claim from a Japanese company – perhaps accounts receivable, a loan, or other contractual rights. This transfer is valid between you (the assignee) and the assignor. However, to make this assignment legally effective and assertable against the party who owes the debt (the

Contracts often include clauses stating that rights or claims arising under them "shall not be assigned" or require prior consent for assignment. Such a provision is known in Japanese law as a "Joto Seigen Tokuyaku" (譲渡制限特約 – a special agreement restricting assignment). For businesses, particularly those involved

In modern finance and commerce, claims that are expected to arise in the future—such as future accounts receivable, ongoing royalties, or future rent payments—represent significant economic assets. Recognizing their importance, Japanese law provides a framework for the assignment of these "future claims" (shorai saiken 将来債権). This