Litigation in Japan
Q16: We would like compensation for damages to our business. How can it be achieved by Japanese litigation?

The recovery of damages are the most common remedy. If an obligor is in breach of the contract by its non- performance, the obligee may obtain damages.
Normally our plaintiff client is seeking it. This remedy is given as a substitute for the performance which was not timely achieved.
The recovery of damages as remedy is also available when the contract is terminated due to the obligor's breach. In this connection, timing of the termination must be always considered with your Japanese lawyer. Normally it is better to terminate the contract, but not always.

For example, if you are the lessee of an office and the breach is from the lessor, you should not terminate the contract because you would still like to rent the office. However, if you are the purchaser of a certain service or goods from your business partner on a continuous basis, you would like or would not like to terminate the contract depending on your situation as to the business. If your company would start a new transaction with another third party after the breach of the current partner, you should terminate the relevant contract.

An order for specific enforcement is also available. This remedy can be useful in certain situations. For example, if you would like to delete certain information of your business on the web site of the defendant, it would be a useful remedy.



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