Coronavirus - Government measures in key jurisdictions - Flipbook - Page 56
Japan
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Insolvency
•
Has the
government made
any changes
to insolvency
legislation?
Contractual
Issues
As of 19 April 2020, the government has not made any changes to insolvency
legislation.
Execution of Contracts
•
It is common in Japan for companies to execute contracts by signing and/or affixing a
company stamp on paper documents. In many cases, even before COVID-19, contract
parties sometimes (i) executed agreements separately and then exchanged PDF
copies on the contract date, and then (ii) sent the originals to be combined as a single
agreement. This approach is legally effective and would be helpful in the COVID-19
situation.
•
An electronic contract with electronic signatures without any paper-based documents
is also permitted under Japanese law, save for exceptions, such as individual
guarantees for a third-party business. The COVID-19 pandemic should encourage the
greater use of electronic contracts by Japanese companies.
What measures
have been taken
to reinforce
contracts?
Force Majeure
•
For a summary of issues on force majeure and frustration in the context COVID-19,
please visit our website here.
Subcontractors
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5
•
On 10 March 2020, the Ministry of Economy, Trade and Industry (“METI”) announced
it had requested companies to take special care in transactions with mid- or small-size
subcontractors (see more here), including (i) refraining from actions delaying supplies
to them, (ii) bearing appropriate increased costs derived from price increases in raw
materials and/or extra work of subcontractors, (iii) making payments on their due date,
and (iv) refraining from cancelling or changing purchase orders.
•
The Antimonopoly Act and Subcontractors Act also prohibit certain unfair trade
practices and would still apply anyhow.
Government measures in key jurisdictions
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