Yokohama Partner Law Office

Japan law firm.Yokohama Partner Law Office.tokyo yokohama


Japan Law Alacarte

1. Importance of Precedence

Japan imported its legal system from civil law countries, such as Germany and France. Japan did not adopt common law system where precedencr plays a very important role.
This may be a reason some times a foreign company doing business in Japan misunderstands the importance of precedence. There are many examples that even if a Japanese code grants a right to a company to do any action, such right is actually restricted by the precedence by courts desicion.
Besides, there are many rules by a ministry which in fact change the contents of the code.
Without the knowledge of precedents by courts and administrative power, it may be very risky doing business in Japan.


2. No Punitive Damage in Japan

I experienced cases where some US company misunderstood this point. For example, when a Japanese company infringes the Intellectual Property Right of a US company in bad fiath, if it occurs in the US, the US company may expect the treble damages, and may be eager to file a lawsuit.
However if it occurs in Japan, if the actual dameges is not so high, it may be prudent to solve the dispute by a settlement.
It is important for a Japanese attorney to provide a foreing company with enough explanation at this point.


3. Contract in Japan

By and large, any contract Japan is very simple, especially comparing to the US contract. A typical Japanese contract consists in the two parts.
One is basic terms and conditions, the other is a sentence of provision which describes "When disputes happen, each party negotiate and solve it in good faith".
Still, many Japanese company dislike long contracts. This is why an attorney working ro a foreign company have a difficult time to negotiate the conditions of the contracts with Japanese company.


Japan law firm.Yokohama Partner Law Office.tokyo yokohama



Yokohama Partner Law Office

Jiro Oyama

Attorney at Law (Japan and New York)

Daiwa Jisho Building 7F, 711

74-1 Yamashita-Cho, Naka-Ku

Yokohama-City 231-0023

TELF045-680-0572@FAXF045-680-0573

Email: oyama@ypartner.com