Commercial Transactions Archives

June 28, 2022

Wage Garnishment in Japan

Wage garnishment in Japan is possible in the form of a “compulsory execution”. One of the many tools a creditor has to force a debtor to fulfill his obligation in Japan is to use compulsory execution to force the debtor to pay. In some cases this can mean confiscating the debtor’s property, but under certain circumstances, perhaps the easiest and most efficient way is to garnish the debtor’s wages. The debtor’s wages may be seized on a continuous basis until the debt and the creditor’s additional costs have been satisfied.

June 16, 2022

Risk of Loss in Japanese Contracts

When one party breaches a contract by not fulfilling their promise, the other party usually has grounds to sue them for damages. A successful lawsuit will compel a court to award a monetary value that is determined to be equal to the amount of damage the non-breaching party has sustained. The monetary amount of these damage awards can be very subjective and will vary from case to case since wide discretion is given to the judge. The law regarding risk of loss in Japanese contracts may not be the same as the laws of other countries, so it is important […]

June 15, 2022

Seller’s Warranty in Japanese Contracts

By default, there is usually a Seller’s warranty in Japanese contracts. This warranty covers a variety of situations that might arise, such as a third party claiming ownership or a latent defect in the goods.

June 13, 2022

What laws govern contracts in Japan?

Japan does not have a separate code of law for contracts to determine what laws govern contracts in Japan. Instead, contract law is governed by various laws contained in the Civil Code, the law of torts, the law of property, the law of succession and family law. While these codes contain the basic rules governing contract formation and execution in Japan, special rules relating to contracts between merchants are contained in the Commercial Code. Furthermore there are many other laws relating to protection of consumers and regulation of business operators.