Amendment to the Japanese Civil Code

Author: Hironori Matsuo

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Japan Legal Update No.21 (March, 2020)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

I. Enactment of the Act Partially Amending the Civil Code

On April 1, 2020, the Act Partially Amending the Civil Code (the “Amendment”) will enter into force and will wholly amend the provisions of the law of obligations, which are mainly compiled in Book III of the Civil Code (the “Amended Civil Code”).

II. Objective of the Amendment

The Japanese Civil Code was enacted in 1896 and since then the contents of the law of obligations have remained essentially intact except for a partial amendment to the guarantee system in 2004. Unsurprisingly, it has been thought that the provisions of law of obligations in the Civil Code require amendment to reflect modern changes to Japanese society.

In addition, those provisions of the Civil Code governing contracts, which are deeply related to individuals’ daily lives and economic activities, require amendment in order to make them more understandable to the public by codifying current case law principles.

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