Japan Compliance

In principle, when a contract is deemed void under Japanese law, particularly for reasons of illegality or because it contravenes public order and morals (as per Article 90 of the Civil Code), any performances already made under that void contract should be returnable. This return is typically sought under the

The principle that no one should be unjustly enriched at another's expense is a cornerstone of fairness in many legal systems. In Japan, this concept is embodied in the doctrine of Unjust Enrichment (不当利得 - futō ritoku), governed primarily by Articles 703 to 708 of the Japanese Civil

When businesses or individuals in Japan decide to collaborate on a common undertaking without forming a separate corporate entity, one of the fundamental legal structures available is the "partnership" as defined by the Japanese Civil Code, known as a kumiai (組合). This traditional form of partnership, governed by

When one party entrusts goods or property to another for safekeeping in Japan, the legal relationship formed is typically a "deposit contract" (寄託契約 - kitaku keiyaku). Governed by the Japanese Civil Code, these agreements can range from simple, informal arrangements to complex commercial warehousing or financial deposits. Understanding

Mandate contracts, known in Japanese as inin keiyaku (委任契約), are a fundamental type of service agreement under the Japanese Civil Code. They govern situations where one party (the mandator - 委任者 ininsha) entrusts another party (the mandatary - 受任者 juninsha) with the performance of certain acts. These acts can be

When engaging a party in Japan to produce a specific outcome—be it constructing a building, manufacturing custom equipment, developing software, or even performing a specific artistic creation—the governing legal framework is typically the "contract for work" (請負契約 - ukeoi keiyaku). Article 632 of the Japanese Civil

"Saburisu" (サブリース), a term derived from the English "sublease," refers to a popular real estate leasing structure in Japan, particularly for newly constructed apartment buildings or entire commercial properties. These arrangements often involve a property management company (the Master Lessor) leasing an entire property from the

When leasing real estate in Japan, particularly residential or commercial properties, tenants often encounter various upfront payments beyond the first month's rent. Among the most common are the shikikin (敷金 - security deposit), reikin (権利金 or 礼金 - key money/gratuity), and sometimes a hoshōkin (保証金 - guarantee

Leasing real estate in Japan, known as chintaishaku (賃貸借), is governed by a combination of general provisions in the Japanese Civil Code (民法 - Minpō) and, more significantly for most land and building leases, by the Land and Building Lease Act (借地借家法 - Shakuchi Shakka Hō, often abbreviated as LBLA)

Engaging in real estate transactions in a foreign jurisdiction requires a keen understanding of local laws and customs. For foreign businesses looking to buy or sell property in Japan, several unique legal concepts and practices come into play. This Q&A will explore some key aspects of Japanese real

Contracts are formed with the expectation of mutual performance. But what happens when, through no direct fault of the performing party (the obligor), their promised performance becomes impossible due to unforeseen events like natural disasters, destruction of unique subject matter, or supervening illegality? A critical question then arises: does the

Contracts are typically understood as creating rights and obligations only between the direct parties to the agreement. However, there are many commercial and personal situations where parties intend for their agreement to confer a direct benefit or right upon an individual or entity not involved in the contract's

In any bilateral contract—where both parties exchange promises to perform—a fundamental concern for each party is the assurance that they will receive the other's promised performance when they render their own. What happens if one party is sued for failing to perform, but they were holding

Understanding how contracts are formed is fundamental to any business engagement. When operating in Japan, or with Japanese counterparties, it's crucial to grasp the local legal framework governing contract formation. Key questions often arise regarding the enforceability of oral agreements and the treatment of standard terms and conditions,

Contracts form the bedrock of business transactions, providing certainty and predictability. However, what happens when, after a contract is signed, unforeseen and radical events fundamentally alter the landscape, making performance extraordinarily burdensome or the contract's original purpose unattainable? Many legal systems grapple with this issue, and Japan is

Imagine this scenario: your company signs a contract with a Japanese entity, only to discover later that the performance promised by your counterparty was, in fact, already impossible at the very moment the agreement was made. This situation, known as "primordial impossibility" or "initial impossibility," raises

In most legal systems, contractual liability crystallizes upon the formation of a contract. However, the journey to a finalized agreement is often complex, involving extensive negotiations, disclosures, and investments of time and resources. This raises a crucial question, particularly pertinent for businesses engaging in cross-border deals: can a party be

Navigating the legal landscape of a foreign country is a critical task for any business. When it comes to Japan, understanding the foundational principles of its contract law is paramount for U.S. companies and legal professionals. While some concepts may seem familiar, the nuances and applications can diverge significantly

In today's global marketplace, businesses invest heavily in developing innovative and distinctive products. However, this success often attracts imitators seeking to capitalize on that investment by producing counterfeit goods or "look-alike" products. Japan offers a multi-layered legal framework to combat such unfair practices, primarily through its