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Formation and Third Party Beneficiaries$
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Mindy Chen-Wishart, Alexander Loke, and Stefan Vogenauer

Print publication date: 2018

Print ISBN-13: 9780198808114

Published to Oxford Scholarship Online: February 2018

DOI: 10.1093/oso/9780198808114.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 26 February 2021

Contracts for the Benefit of Third Parties in Japan

Contracts for the Benefit of Third Parties in Japan

(p.256) 13 Contracts for the Benefit of Third Parties in Japan
Formation and Third Party Beneficiaries

Masami Okino

Oxford University Press

This chapter discusses the law on third party beneficiaries in Japan; mostly characterized by adherence to the German model that still bears an imprint on Japanese contract law. Thus, there is neither a doctrine of consideration nor any other justification for a general doctrine of privity, and contracts for the benefit of third parties are generally enforceable as a matter of course. Whether an enforceable right on the part of a third party is created is simply a matter of interpretation of the contract which is always made on a case-by-case analysis but there are a number of typical scenarios where the courts normally find the existence (or non-existence) of a contract for the benefit of a third party. In the recent debate on reform of Japanese contract law, wide-ranging suggestions were made for revision of the provisions on contracts for the benefit of third parties in the Japanese Civil Code. However, it turned out that reform in this area was confined to a very limited codification of established case law.

Keywords:   Japanese law, contract formation

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