Is it possible to sell rights under a contract to a third party?

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In Japan, most contract rights are assignable to third parties.  This general rule is limited to rights that are of an assignable nature (such as collecting payment) and to contracts that do not explicitly prevent assignments.  This means that a party to a contract may assign his right to collect ten million yen over the course of a year, to a third party in exchange for nine million yen immediately.  This rule favoring assignment allows parties to freely contract to suit their needs and ideally should promote the best possible economic outcome for all parties.

However, assigning or purchasing contract rights should be undertaken very carefully.  It is very important to completely understand the extent of the right being assigned and whether any responsibilities are attached to the exercise of that right.  Consulting with a lawyer in these situations is highly recommended.

If you would like to set up an appointment to discuss the assignment of a contract right, please contact our office.