Can't Do Your Assigned Job Due to Illness? You Might Still Be Owed Wages: Japan's Katayama Gumi Landmark When an employee is unable to perform their assigned duties due to a non-work-related illness or injury (私傷病 - shishōbyō), it raises complex questions about their employment status and entitlement to wages. If the employee cannot work at all, the situation is often governed by sick leave policies or, in
The Thin Line Between Work Order and Punishment: Japan's JNR Kagoshima Case Revisited In any employment relationship, employers retain the authority to direct their employees' work through what are known in Japan as "business/work orders" (業務命令 - gyōmu meirei). This authority is essential for operational efficiency and achieving business objectives. However, this power is not absolute and is subject
Consent or Coercion? Japanese Supreme Court Sets High Bar for Agreeing to Worse Work Rules When employers seek to change work rules, especially in ways that are disadvantageous to employees, Japanese labor law provides two main pathways for such changes to become binding. First, an employer can unilaterally implement changes if they are deemed "reasonable," even if individual employees do not consent (a
Challenging a Will in Japan: Understanding "Iryūbun" (Legally Reserved Portion) and its Enforcement In Japan, as in many civil law jurisdictions, the principle of "freedom of testation" (遺言自由の原則 - yuigon jiyū no gensoku) allows individuals to freely dispose of their property by will (遺言 - yuigon or igon). However, this freedom is not absolute. To protect the interests of close family
My Business Partner in Japan Passed Away: How Are Their Assets and Debts Handled in Succession? The death of a business partner, shareholder, or key counterparty in Japan can trigger a complex legal process known as sōzoku (相続 – inheritance or succession). This process determines how the deceased's assets and liabilities are identified, valued, and ultimately distributed among their heirs. For businesses and individuals who
Defective Product from Japan Caused Harm: Who is Liable and What Must Be Proven? In an era of global commerce, products manufactured in one country often find their way to consumers and businesses across the world. When such a product turns out to be defective and causes harm, victims rightly seek compensation. If a product originating from Japan is implicated, understanding the Japanese legal
Can a Japanese Company Be Held Liable for its Employee's Wrongdoing? Understanding Employer's Liability (Shiyōsha Sekinin) Businesses worldwide operate through their employees, and while this delegation of tasks is essential for growth and efficiency, it also carries inherent risks. One such risk is the potential for an employee's wrongful act to cause harm to a third party, leading to legal liability for the employer.
Proving Negligence (Kashitsu) in Japanese Tort Law: What is the Standard of Care, Especially in Medical Malpractice? In Japan, as in most legal systems, establishing negligence (過失 - kashitsu) is a cornerstone for holding a party liable in tort for unintentional harm caused to another (governed generally by Article 709 of the Civil Code). Whether in the context of a traffic accident, a defective product, or alleged
Are Standard Form Contracts (Teikei Yakkan) Enforceable in Japan, Even if I Didn't Read All the Terms? In the fast-paced world of modern commerce, standard form contracts (SFCs) are ubiquitous. From software licenses and online service agreements to transportation terms and conditions, businesses and consumers alike frequently encounter pre-drafted contracts presented on a "take-it-or-leave-it" basis. A common concern is whether one can be bound by
Goods Delivered by My Japanese Supplier Don't Meet Specs: What Are My Rights? In commercial transactions, receiving goods or completed work that fails to meet the agreed-upon specifications is a common and often frustrating problem. Whether it's a discrepancy in type, quality, or quantity, such non-conformity can disrupt business operations, lead to financial losses, and strain supplier relationships. Japanese law provides
Terminating a Contract in Japan: Grounds for Rescission (Kaijo) and Its Consequences Contracts form the backbone of business relationships, providing a framework for mutual obligations and expectations. However, situations inevitably arise where one party fails to perform as promised, or where unforeseen circumstances make continued performance untenable. In such cases, Japanese law provides a mechanism for bringing the contract to an end:
Who Bears the Risk if Property is Damaged Before Delivery in a Japanese Sales Contract? Understanding "Kiken Futan" In any sales transaction, particularly those involving the physical delivery of goods, there's an inherent risk that the goods might be damaged, lost, or destroyed before they reach the buyer. A critical legal question then arises: who bears this "risk of loss"? If the goods perish
My Japanese Counterparty Hasn't Performed: Do I Still Have to Fulfill My Part of the Contract Under the "Dōji Rikō no Kōbenken"? In any contractual relationship, particularly in business, the timely and proper performance of obligations by all parties is crucial. But what happens when your Japanese counterparty fails to perform their side of the bargain? Are you still obligated to proceed with your own performance, potentially exposing yourself to further risk
Forming a Contract in Japan: Offer, Acceptance, and Navigating Pre-Contractual Negotiation Pitfalls The formation of a legally binding contract is the bedrock of most commercial activities. In Japan, as in many other civil law jurisdictions, the creation of a contract is primarily governed by the principles of offer and acceptance, reflecting the mutual assent of the parties. While these foundational elements might
Understanding Guarantees in Japanese Business: Scope of Guarantor's Liability and Right of Reimbursement Guarantees (保証 - hoshō) are a frequently encountered form of personal security in Japanese business transactions. They serve as a crucial credit enhancement tool, providing creditors with an additional layer of assurance that an obligation will be fulfilled, even if the principal debtor defaults. However, the rights and obligations of
My Japanese Debtor Fraudulently Transferred Assets: How Can I Void the Transaction? Creditors worldwide face the risk of debtors attempting to shield their assets from collection efforts through fraudulent transfers or dispositions. Japanese law provides a powerful remedy for such situations: the "Obligee's Right to Revoke a Fraudulent Act" (詐害行為取消権 - sagaikōi torikeshi ken). This right, often referred
My Japanese Debtor Won't Collect from Their Own Debtor: Can I Step In Under the Obligee's Subrogation Right? In the course of business, creditors sometimes face a frustrating situation: their debtor has valid claims against a third party, but the debtor fails or refuses to exercise those claims. This inaction can directly impact the creditor's ability to recover their own dues, especially if the debtor has
Enforcing a Mortgage in Japan: Scope, Infringement, and Priority Issues Mortgages (抵当権 - teitōken) are a cornerstone of secured lending in Japan, particularly for high-value assets like real estate. They provide creditors with a powerful tool to secure repayment of loans by granting them a preferential right over the mortgaged property in the event of the debtor's default.
Secured Transactions in Japan: What are "Tanpo Bukken" and How Do They Protect Creditors? In any advanced economy, the availability of credit is a vital lubricant for business activity and investment. Lenders, however, inherently face the risk of a borrower defaulting on their obligations. To mitigate this risk, legal systems provide mechanisms for securing claims, ensuring that a creditor has a better chance of
Can I Acquire Good Title to Movable Property from a Non-Owner in Japan? Understanding "Good Faith Acquisition" In the dynamic world of commerce, transactions involving movable property (goods, equipment, etc.) occur with great frequency. A fundamental question that often arises is whether a buyer can obtain valid ownership if the seller, unbeknownst to the buyer, did not actually have the right to sell the property. While the
I Bought Real Estate in Japan But Haven't Registered: What Are My Risks Against Third Parties? Acquiring real estate in any jurisdiction involves navigating a complex web of legal requirements. In Japan, one of the most critical steps after purchasing immovable property is the registration (登記 - tōki) of the change in ownership or other real rights. While a contract for sale might be perfectly valid
My Claim Against a Japanese Company is Old: Is It Too Late to Sue Due to Japan's Statute of Limitations? In the world of commerce, time is often of the essence, not only for business operations but also for the enforcement of legal rights. One critical aspect that creditors must vigilantly manage is the statute of limitations, known in Japan as "extinctive prescription" (消滅時効 - shōmetsu jikō). Allowing
Understanding Agency in Japan: What Authority Does My Representative Have and What if They Exceed It? In today's interconnected global economy, businesses frequently rely on representatives or agents to conduct transactions, negotiate deals, and act on their behalf in foreign jurisdictions. Japan is no exception. The Japanese Civil Code (Minpō) provides a comprehensive framework for agency (代理 - dairi), outlining the scope of an
My Japanese Business Partner Seemed Impaired: What if They Lacked Mental Capacity During Contract Negotiation? In the realm of contract law, the mental capacity of the contracting parties is a cornerstone for the validity of any agreement. This principle holds true in Japan, where the Civil Code (Minpō) addresses the implications of entering into a contract with an individual who may lack the requisite mental
What are the Fundamental Principles of Japanese Civil Law Every Business Should Know? The Japanese Civil Code (Minpō), first enacted in 1896 and having undergone significant reforms, particularly to its law of obligations effective from April 2020, stands as the foundational legal framework governing private rights and relationships in Japan. For any business operating in or engaging with Japan, a fundamental understanding of
