Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 63
Japan
4
Contractual
Issues
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
5
Property
•
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.
•
As of 15 May 2020, there have been no changes to the laws that legally allow tenants
to defer rent payments, but new legislation is being discussed. On 31 March, the
Ministry of Land, Infrastructure, Transport and Tourism (“MLIT”) requested landlords
for commercial rents to accept a deferral of rent payments by tenants who have
difficulty paying rent due to the COVID-19 situation. On 17 April, the MLIT also
announced that it would extend a one-year grace period for the payment of taxes
and social insurance contributions by building owners for commercial rents who
agreed to defer or cancel rent payments.
•
Prefectural governors are now able to instruct operators managing commercial
facilities such as movie theatres, meeting halls, exhibition halls and department
stores (not including office spaces itself) to restrict visitors or prohibit symptomatic
persons to enter premises, etc. Land and housing may be requisitioned by prefectural
governors when deemed essential to establish temporary medical facilities.
Have any changes
been made to
the laws around
property, rent and
enforcement?
Government measures in key jurisdictions
63