FAQ

February 27, 2017

What does the Incoterm FOB mean?

When goods are shipped with the condition Free on Board (FOB), the seller is responsible for preparing the goods for shipping and loading them onto the ship for transport.  The buyer is then responsible for paying the cost of transportation and any fees imposed at the eventual port of call.  Insurance, if necessary, is also the buyer’s responsibility, as the risk of loss transfers to the buyer upon the seller loading the goods onto the transport.  The term FOB can only be used in situations where goods are being shipped by land or sea.
February 3, 2017

What is an Entire Agreement Clause?

As the name suggests, an entire agreement clause (also sometimes called an integration clause or merger clause) simply states that the signed agreement between the parties is the complete and final agreement.  While this clause is often very simple and introduced toward the end of an agreement, it plays an important role in defining the parties’ rights and responsibilities.  Neglecting to include an entire agreement clause can lead to misunderstandings and unexpected liability at a later date.
January 16, 2017

When can rent on property be raised in Japan?

In Japan, traditionally rent is not raised every year and there are there are only 4 statutorily recognized situations where rent may be adjusted.  The Act on Land and Building Leases lists the 4 situations:  1) property taxes have increased or decreased, 2) property values have increased or decreased, 3) some other change in the economic situation, & 4) the rent is inappropriate compared with other properties in the area.  Barring one of these 4 situations, rent should not be adjusted either up or down.  However, situation #3 (change in economic situation) is very vague and can be used to […]
December 19, 2016

Are International Commerce Terms (Incoterms) used in Japan?

International Commerce Terms (or Incoterms as they are often called) are a set of pre-defined commercial terms that are commonly used in international contracts between businesses.  Many of the terms are three letter abbreviations that appear as common clauses in commercial contracts.  Japanese business that rely on import or export of goods will regularly include these standard terms in agreements with foreign buyers or suppliers.