FAQ

November 14, 2018

Mandatory Provisions for Japanese Contracts

For the most part, parties have freedom of contract in Japan and are allowed to include, or not include, whatever they want in their contract.  However, there are exceptions to this generally lenient rule and the Japanese Civil Code does set forth some cases which require mandatory provisions for Japanese contracts . Certain contracts are subject to special mandatory provisions that are automatically inserted into the contract by law.  One example is for contracts governing the lease of land for the purpose of owning a building.  The Land Lease and House Lease Act provides that these contracts shall have a […]
August 2, 2018

Contracts and Public Policy In Japan

It is necessary to have an adequate understanding of Japanese law to ensure that a contract does not violate public policy in Japan. The interaction between contracts and public policy in Japan is a complex one. Parties in Japan are free to contract regarding almost anything but contracts that are against public policy are considered void.  This makes sense and most people would agree that the concerns of public health and safety outweigh the parties’ right to enforce a contract for the sale of illegal drugs.  However, there is no specific line to determine which contracts will be considered as […]
January 5, 2018

What is waiver of subrogation?

What is waiver of subrogation? When used in the insurance context, subrogation refers to an insurer’s ability to pursue a third party for the payments it made to the insured party.  Naturally, this is beneficial for the insurance company as it is able to recoup its losses.  However, the parties to the agreement may wish to prevent this subrogation for other reasons.
December 11, 2017

What is a Settlement Agreement?

A settlement agreement usually has two main parts.  First, it should include a waiver of legal liability for disputes arising out of the same issue.  This provides protection for the parties from a lawsuit over the same issue in the future.  Second, it should contain some transfer of assets or rights in exchange for waiving the right to sue.  This transfer will often be based upon what the wronged party might expect to win if the issue were litigated in court, but will usually be reduced by a fair amount to reflect the time and expense saved by not litigating […]