However, after judicial precedents, there will be, in certain circumstances, certain restrictions on the suspension of a permanent contract, as indicated in question 17. In the absence of a relatively long notice period, termination of the contract may not be permitted depending on the circumstances. For example, the validity of a software development contract containing a provision that ”the damages limit is the amount of the contract set in an individual agreement” has been verified by a court. In this case, the Tribunal found that ”if this provision restricts liability for damages, even if a party concerned deliberately or grossly negligently violates rights or interests, it seriously affects the capital ratio and runs counter to the usual intentions of the parties concerned” and also held that the provision to limit damages did not apply to such cases. While the analysis of the Tokyo Supreme Court`s decision on the cosmetics special agent export agreement described above could reasonably be consistent with the principle of contractual freedom, since some participations in other cases, based on just principles, minimize the risk of litigation when terminating agreements, it would be desirable to consider the legitimate grounds for cancelling an ongoing contract. Yes, the Code of Civil Procedure provides that the parties can, by mutual agreement, determine the country in which they can take legal action, provided that such an agreement is proven by a paper document. The code also provides that when the contract is executed electronically (e-mail, etc.), the agreement is deemed to be executed by a paper document. On the other hand, court decisions recognizing the freedom to terminate continuation contracts have led to a concentration on the principle of contractual freedom. For example, the Tokyo Supreme Court held that an ”inevitable reason” was not necessary in exercising the right to terminate the contract, in the event that the exercise of a right to terminate an agreement on special means of distribution of cosmetic products is challenged. In addition, it was found that agreements on the refusal to renew a free trade agreement for the Densaten lunch would expire at the end of the period, unless there were special circumstances, such as the refusal of renewal as a violation of public order or the principle of good faith. The amendment is expected to come into force on April 1, 2020. This will probably be referenced when determining the mandatory applicability of the standard form contract.
In addition to the requirements under the agreement as described above, the amendment also aims to ensure legal stability by defining the rules on the effectiveness of changes to fixed standard clauses. In addition, the content and presentation provisions of the fixed standard form clause are also included in the amendment. However, this principle of ”fixed standard form clause” does not apply if one of the parties has demonstrated, prior to the effect of the amendment, the intention not to apply this principle. Of course, you need to revise it to adapt your services. Don`t forget to ask a lawyer to check.