Control of Price Related Terms in Standard Form Contracts in Japan

Abstract

This national report provides an overview of Japanese law on the topic of control of price terms in standard form contracts. After providing general background information on the primacy of freedom of contract and control of standard terms in general under the Japanese legal system, the report turns to the central question of private law control of price terms in standard contract terms. However, this has not been an issue that has been fully discussed or developed under Japanese law, and therefore, there is a lack of a coherent analytical framework. Nonetheless, there are recent high-profile Supreme Court cases that utilize private law rules such as the Consumer Contract Act to control price terms. In addition, public law regulations that may affect price terms also exist. One recent area that is gaining academic as well as public attention is the pricing practice in mobile telecommunication contracts. These movements may become a trigger for the development of rules on control of price terms in Japan.