Basic Japanese Laws. Edited by. HIROSHI ODA LLB LLD (Tokyo) Sir Ernest Satow Professor of Japanese Law Attorney-at-Law.

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1 Basic Japanese Laws Edited by HIROSHI ODA LLB LLD (Tokyo) Sir Ernest Satow Professor of Japanese Law Attorney-at-Law assisted by SIAN STICKINGS MA (Oxon.) Research Fellow in Japanese Law Barrister-at-Law Faculty of Laws University College London CLARENDON PRESS OXFORD 1997

2 1. The Constitution 1 Legislative History 1 Note on the Translation 2 Text of the Constitution of Japan 3 I. The Emperor 4 II. Renunciation of War 5 III. Rights and Duties of the People 6 IV. The Diet 10 V. The Cabinet 13 VI. Judiciary 15 VII. Finance I 7 VIII. Local Self-Government 18 IX. Amendments 18 X. Supreme Law 19 XL Supplementary Provisions The Civil Code Legislative History 91 Relationship between Civil Code and Commercial Code 22 Statutes related to the Civil Code 22 Note on the Translation Text of the Civil Code BOOK I. GENERAL PROVISIONS 24 I. Persons I. Enjoyment of Private Rights 24 II. Capacity 24 III. Permanent Residence 27 IV. Disappearance 27 V. Presumption of Simultaneous Death

3 Vlll Contents OOK II. REAL RIGHTS II. Juridical Persons I. Formation of Juridical Person II. Administration of Juridical Person III. Dissolution of Juridical Person IV. Delegation of Powers by Competent Authorities V. Penal Provisions III. Things IV. Juristic Acts II. Declaration of Intention III. Agency IV. Void and Voidable Acts V. Conditions and Time V. Periods of Time VI. Prescription II. Acquisitive Prescription III. Extinctive Prescription II. Possessory Right I. Acquisition of Possessory Right II. Effect of Possessory Right III. Loss of Possessory Right IV. Quasi-Possession III. Ownership I. Extent of Ownership II. Acquisition of Ownership III. Co-ownership IV. Superficies V. Emphyteusis VI. Servitudes VII. Right of Retention VIII. Preferential Rights II. Classes of Preferential Rights Subsection I. General Preferential Rights

4 ix Subsection II. Preferential Rights over Movables 75 Subsection III. Preferential Rights over Immovables 77 III. Rank of Preferential Rights 78 IV. Effect of Preferential Rights 79 IX. Pledge II. Pledge of Movables 82 III. Pledge of Immovables 82 IV. Pledge of Rights 83 X. Mortgage II. Effect of Mortgage 85 III. Extinction of Mortgage 89 IV. Floating Mortgage 90 BOOK III. OBLIGATIONS I. Subject-matter of Obligation 96 II. Effect of Obligation 98 III. Obligation with a Plurality of Parties 100 Subsection 100 Subsection II. Indivisible Obligation 100 Subsection III. Joint and Several Obligation 101 Subsection IV. Suretyship Obligation 103 IV. Assignment of Claim 107 V. Extinction of Obligation 108 Subsection I. Performance 108 Subsection II. Set-off 114 Subsection III. Novation 115 Subsection IV. Release 116 Subsection V. Merger 116 II. Contract Subsection I. Formation of Contract 116 Subsection II. Effect of Contract 119 Subsection III. Rescission of Contract 120 II. Gift 121 III. Sale 122 Subsection 122 Subsection II. Effect of Sale 123 Subsection III. Redemption 126 IV. Exchange 128

5 V. Loan for Consumption 128 VI. Loan for Use 129 VII. Lease 130 Subsection 130 Subsection II. Effect of Lease 131 Subsection III. Termination of Lease 132 VIII. Contract of Employment 133 IX. Contract for Work 135 X. Mandate 137 XI. Bailment 139 XII. Association 140 XIII. Life Annuity 143 XIV. Compromise 144 III. Management of Affairs without Mandate 144 IV. Unjust Enrichment 145 V. Tortious Act 146 BOOK IV. RELATIVES II. Marriage 150 I. Formation of Marriage 150 Subsection I. Requisites for Marriage 150 Subsection II. Nullity and Annulment of Marriage 152 II. Effect of Marriage 153 III. Matrimonial Property System 154 Subsection 154 Subsection II. Statutory Property System 155 IV. Divorce 155 Subsection I. Divorce by Agreement 155 Subsection II. Judicial Divorce 157 III. Parents and Children 157 I. Children of the Body 157 II. Adoption 160 Subsection I. Requisites for Adoption 160 Subsection II. Nullity and Annulment of Adoption 161 Subsection III. Effect of Adoption 163 Subsection IV. Dissolution of Adoptive Relation 164 Subsection V. Special Adoption 165 IV. Parental Rights II. Effect of Parental Rights 168 III. Forfeiture of Parental Rights 171

6 xi V. Guardianship 171 I. Commencement of Guardianship 171 II. Entities of Guardianship 172 Subsection I. Guardian 172 Subsection II. Supervisor of Guardian 173 III. Functions of Guardianship 174 IV. Termination of Guardianship 176 VI. Support 177 BOOK V. SUCCESSION II. Successors III. Effect of Succession II. Shares in a Succession III. Partition of Estate IV. Acceptance and Renunciation of Succession II. Acceptance Subsection I. Unconditional Acceptance Subsection II. Qualified Acceptance 3. The Commercial Code III. Renunciation V. Separation of Property VI. Failure of Successors VII. Wills II. Forms of Will 195 Subsection I. Ordinary Forms 195 Subsection II. Special Forms I 97 III. Effect of Will I 98 IV. Execution of Will 202 V. Revocation of Will 205 VIII. Legally Secured Portions 205 Legislative History Statutes Related to the Commercial Code 211 Note on the Translation Text of the Commercial Code

7 Xll Contents BOOK I. GENERAL PROVISIONS BOOK II. COMPANIES I. Rules on Application of Law II. Merchants III. Commercial Registration IV. Trade Names V. Trade Books VI. Trade Employees VII. Commercial Agents II. Gomei-Gaisha I. Establishment II. Internal Relations of the Company III. External Relations of the Company IV. Termination of Membership V. Dissolution VI. Liquidation III. Goshi-Gaisha IV. Kabushiki-Gaisha I. Establishment II. Shares III. Organs of the Company I. Shareholders' General Meeting Subsection Subsection II. Directors and Board of Directors Subsection III. Auditors III-II. Issue of New Shares IV. Company Accounts V. Bonds Subsection Subsection II. Bond Holders' Meeting Subsection III. Convertible Bonds Subsection IV. Bonds with Pre-emptive Rights to New Shares VI. Amendment of the Articles of Incorporation VI-II. Capital Reduction VII. Company Reorganization VIII. Dissolution IX. Liquidation

8 xiii Subsection 342 Subsection II. Special Liquidation 345 V. [Deleted] 351 VI. Foreign Companies 351 VII. Penal Provisions 353 BOOK III. COMMERCIAL TRANSACTIONS II. Sale 364 III. Accounts Current 366 IV. Anonymous Association 367 V. Brokerage 368 VI. Commission Agency 369 VII. Freight Forwarding 370 VIII. Carriage 372 I. Carriage of Goods 372 II. Carriage of Passengers 375 IX. Deposit 376 ^77 II. Warehousing J " X. Insurance 382 I. Non-Life Insurance 382 Subsection 382 Subsection II. Fire Insurance 388 Subsection III. Transport Insurance 389 II. Life Insurance 39U BOOK IV. MARITIME COMMERCE [Omitted] Law»w Concerning Prohibition of Private Monopoly and Maintenance of Fair Trade (Antimonopoly... Law) w \ 393 Legislative History Statutes Related to the Antimonopoly Law Note on the Translation Text of the Antimonopoly Law II. Private Monopolization and Unreasonable Restraint of Trade

9 xiv Contents III. Trade Associations 401 III-II. Monopolistic Situations 402 IV. Stockholding, Interlocking Directorates, Mergers and Acquisitions of Business 403 IV-II. Parallel Price Increases 410 V. Unfair Trade Practices 411 VI. Exemptions 411 VII. Damages 416 VIII. Fair Trade Commission 417 I. Organization and Powers 417 II. Procedures 421 III. Miscellaneous Provisions 432 IX. Litigation 433 IX-II. Miscellaneous Provisions 436 X. Penal Provisions Law on the Application of Laws (Horei) 443 Legislative History 443 Statutes Related to the Law on the Application of Laws 443 Note on the Translation 444 Text of the Law on the Application of Laws (Horei) Bibliography of English Language Materials on Japanese Law Topics Published Between 1985 and Note on the Bibliography 452 Index of Categories 453 Bibliography 455 Index of Authors 504