A choice of law clause, also called a “governing law clause” or “proper law clause,” is a clause used in contracts to identify the type of law that should be applied to interpret the contract. Since the laws of various countries can differ in how they interpret contracts, without a choice of law clause, a contract may be valid when interpreted under one country’s laws but may be found invalid under the laws of another country.
Employment contracts in Japan generally define the relationship between the employee, the job and the company. In Japan, an employment contract must clearly state the period of the labor contract, the workplace, job duties, the existence of overtime, the start and end time as well as days off, the wage and rules regarding dismissal. It is the duty of the employee to check the contract before signing to ensure that he or she agrees with all the terms. Therefore, it is important to have the contract translated if it is in a language that the employee cannot read.
Patent law in Japan covers inventions that “utilize the laws of nature.” This qualification makes Japanese patent law unique and means that inventions that the products of a person’s mind, rules to a game or scientific laws cannot be patented. Therefore, business method patents, which are designed to protect an intangible business idea, are generally not recognized in Japan.
Determining whether a debtor is a real, registered company is an important first step when collecting a debt. Many individuals who have never incorporated their business will still print business cards with a business’s name and logo in order to seem more like a reputable company. However, searching the list of registered companies in Japan provides a quick and effective way to determine whether the debtor is a real company or just an individual pretending to own an incorporated business.