Business transactions, if partially composed of international elements, may see some differences in the legal aspects compared with business transactions conducted within Japan. For example, if a Japanese company intends to start trading with an overseas company, it may be necessary to prepare contracts in English.
However, if a Japanese company tries to negotiate in order to improve the contents of contracts by translating contracts written in Japanese, which a Japanese company usually uses, into English and preparing draft contracts or by considering while translating contracts written in English which an overseas company presents, it usually doesn’t work at all. This could have been caused by a variety of factors.
One of the factors is that there are language-wise difficulties in translating Japanese into English and vice versa. Also, the fact that the formats of contracts differ between Japanese and English contracts might be another factor.
More than anything, the fact that understanding in law or common knowledge differ between Japanese companies and overseas companies is the fundamental reason why the negotiation doesn’t work well. The gap regarding understanding in law or common knowledge makes it complicated to conduct general negotiation regarding contracts by preparing terms and conditions of contracts to make the other party accurately understand, explaining, convincing (in a persuasive manner), judging the acquisition and loss accurately reflecting the other’s intention implied in the term and conditions of contracts.
This complexity is often accompanied by international business transactions, which is not limited in the case of contract negotiation. In order to achieve successful business with dealing this complexity, it is indispensable to conduct business in consideration of understanding in law or common knowledge of both sides which is understood as international understanding in law or common knowledge in this case.
Our firm has lawyers who have career at overseas law firm or company or who have studied abroad at overseas school of law or university, which makes us possible to provide advice in consideration of international understanding in law or common knowledge based on these backgrounds. Our firm also provide advice not only as a Japanese company side but also as an overseas company side which do business with Japanese companies including Japanese branches or associated companies located in Japan. We support our clients in various ways such as sorting out the inherent risks of contracts or representing clients to negotiate contracts. Furthermore, we can provide advice or prepare documents in English regarding labor and employment, customs, taxation or other areas our firm covers not just in a narrow range but in a broad range of transaction.