FAQ

June 3, 2016

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

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.
May 16, 2016

Is it legal to sublease an apartment in Japan?

Subleasing property is not generally as accepted in Japan as it is in other parts of the world.  Most rental contracts tend to include a provision specifically prohibiting subleasing.  In these cases, the terms of the agreement will typically state that if a tenant subleases the apartment without the landlord’s prior approval, the landlord may cancel the contract.
April 25, 2016

What is an Exclusive Remedy Clause?

One of the reasons that companies enter into written contracts with each other is to provide a certain amount of predictability in business dealings.  The contract allows both parties to know what to expect from each other over a term that can last for months or years.  However, when one party breaks the contract, this predictability is shattered if the remedy for the breach is left up to an arbitrator or judge.  Including an exclusive remedy clause into the contract can resolve this potential source of unpredictability.
April 1, 2016

Is there a system of public notaries in Japan?

Like many countries around the world, Japan maintains a system of notaries to certify documents and notarize signatures.  The Ministry of Justice in Japan overseas the appointment and regulation of notaries in Japan, many of whom are former judges or prosecutors.  In Japan, notaries most often are asked to attest to a private deed or prepare a notary deed upon request based on facts or legal rights.