Unfortunately, not every contract is completed as promised. Business partners find better deals or decide that they no longer want to perform their obligations. When one side breaks his or her promise a “breach of the contract” occurs and usually the other party can sue them in court to recover their damages. However, Japanese law, like most developed contract law around the world, makes a distinction for parties that didn’t keep their promise because it became impossible to keep.
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.
In many purchase and sales agreements, delivery is a key component of the contract. When, how and where delivery will take place is often crucial to the business operations of both the seller and the buyer. However, delivery is also frequently performed by a third party delivery company. Therefore, the question of who takes on the responsibility for a successful delivery is an important consideration when drafting a purchase and sales agreement.
In sales contracts, one of the most important parts of the contract is who will accept delivery of the goods. However, many times this is not identified beyond the standard term “Buyer” in the contract. This can result in confusion and mistakes when the seller makes a delivery to a person who is not authorized to accept it.