Making a Business Contract in Japan

Culture that Values Trust over Contracts

Importance of making a contract before starting business is somewhat underestimated in Japan. Many of Japanese people assume that most problems can be resolved through good-faith discussion.  Maintaining mutual trust seems to be considered more important than making a legally binding agreement.

Being influenced by such Japanese culture or attitude, even non-Japanese residents often do without contracts. It may be difficult for them to delay the commencement of business until conclusion of the contract, if their Japanese clients, who do not care much about contracts,  demand them to start business immediately,

Most common failure related to contracts

Do you know what is one of the most common failures related to contracts? That is starting business before making a contract. People make contracts in order to make sure both parties have the same understanding about the transaction. If you skip this important process, no wonder that the parties are more likely to end up fighting.

As a lawyer, we receive many inquiries about business disputes. Most of the disputes can be avoided if contracts are properly prepared.  Hiring lawyers to prepare contracts take some costs and expenses. But compared to fighting long dispute in court, it’s much faster and cheaper solution.

What kind of Contracts are Ideal?

It should be written in Japanese

Japanese companies, except for large corporations, do not have personnel capable of reviewing contracts written in English. In addition, Japanese people are not willing to use templates written in English for domestic transactions. Therefore, those doing business in Japan should prepare contracts in Japanese.

Simple contract which can protect your rights and interest.

If you try to secure your own rights and interests completely, the contract will be long and complicated. However, Japanese people may hesitate to sign it because they are not used to such long-winded documents. In order to agree on the conditions and start business smoothly, the contract should be short and simple. But at the same time, it should be the one that can protect your important rights and interest. To prepare such well-balanced contract, the lawyer must have extensive experience in drafting business contracts.

Our English Speaking Lawyer have broad experience in contract drafting services. So, if you need an assistance related to business contracts, please do not hesitate to contact us.

Contact Page