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10 Major Revisions to the Japanese Civil Code
Part Seven – Interest Rates and Set-off

By Shinya Yoshida and Peter Cassidy

This is the final column in our series on revisions to Japan’s Civil Code. looks at two issues concerning contracts – cancellation and mistake. There has been a major change to the principle regarding cancelling a contract. Also, the Code has been revised to change what happens when a party discovers a mistake in a contract; in other words, they find out that they what they have signed is not what they intended.

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10 Major Revisions to the Japanese Civil Code
Part Six – Work Contracts and Leases

By Shinya Yoshida and Peter Cassidy

This penultimate entry in our series on revisions to Japan’s Civil Code looks at two issues that are important to many businesses. Contracts for the performance of work, including subcontracts for construction, do not always go to plan. This column will look at how the Code has been revised to decide issues regarding payment to a contractor when the work cannot be completed, a defect is discovered in the work, or one of the parties enters bankruptcy.

Also worthy of note is some changes that have been made to the Code on leases. In particular, the maximum length of a lease allowed under law and the parties’ responsibilities for repairs to the leased property.

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10 Major Revisions to the Japanese Civil Code
Part Five – Cancellation of Contracts and Mistake

By Shinya Yoshida and Peter Cassidy

This part in our series on revisions to Japan’s Civil Code looks at two issues concerning contracts – cancellation and mistake. There has been a major change to the principle regarding cancelling a contract. Also, the Code has been revised to change what happens when a party discovers a mistake in a contract; in other words, they find out that they what they have signed is not what they intended.

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10 Major Revisions to the Japanese Civil Code
Part Four – Guarantees

By Shinya Yoshida and Peter Cassidy

This part of our series on revisions to Japan’s Civil Code looks at guarantees. The revised Civil Code contains major changes to interpretations and several major revisions to the law concerning sales contracts. The main feature is that under the revised Code, if there is a problem with the type, quality or quantity of the subject matter, the buyer’s options are no longer limited to compensation for damages or cancellation of the contract. Instead, it will be also possible to make a claim for a reduction of the purchase price or “subsequent completion” (i.e. repair or delivery of a replacement), regardless of whether the subject matter is an “identified good” or “unidentified good”.
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Rule for converting employment contracts from fixed-term to indefinite-term

By Nobuhiro Kotou

Last month several major news reports were published regarding labour laws, including reports that the Japanese Trade Union Confederation (Rengo) had approved (and later retracted their approval of) the “highly-skilled professional system” (also reported as the “zero overtime pay system”) that excludes certain high-earning professionals from being subject to regulations regarding work hours, including the payment of overtime, as well as reports that the Ministry of Health, Labour and Welfare had issued warnings regarding illegal overtime to approximately 10,000 workplaces during the 2016 fiscal year. Yet, an event that will likely see reporting of much greater impact around April of next year is the “rule for converting labour contracts from fixed-term to indefinite-term” (i.e. the “indefinite-term conversion rule”) coming into practical effect.

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