The termination is also a remedy for the party because it can get rid of the business relationship from the other by it.

The non- performance of a contract by a party gives the other party a right to terminate the contract.

Normally it should be noticed by a formal contents certified mail by a lawyer. This type of mailing is normally used by Japanese lawyers to prove the existence and delivery of the notice later in the litigation.

In addition, such notice from lawyers will lead to the preparation of the other breaching party to handle the disputes.
After the termination (kaijo), both parties will be discharged of their contractual obligations. Legally under Japanese civil law this contract then is deemed to have existed from the beginning. It is essential, however, that your lawyer review the then legal relationship between the parties. Often there are additional contractual clauses as to terms of the termination and how the notice should be made.
In Japan, the Civil Code provisions are applied in addition to such contractual terms between parties and sometimes the contractual terms are not fully valid under Japanese civil laws.

Accordingly, the legal relationship to be reviewed in such situations would be who has what sort or rights and obligations upon commencement of disputes and at the time of the termination.

Please do not hesitate to contact us for further advice.