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Act on General Rules for Application of Laws*

(Act No. 78 of 2006, Entry into force on January 1, 2007)

*This english translation was made by Masato Dogauchi et al.,


which is available in the Japanese Annual of International Law, No.
50(2007). The translation is also available in Okuda and Anderson,
Translation of Japan's Private International Law: Act on the
General Rules of Application of Laws [H no Tekiy ni Kansuru
Tssokuh], Law No. 10 of 1898 (as newly titled and amended 21
June 2006), 8(1) ASIAN-PACIFIC LAW & POLICY JOURNAL 139
(Fall 2006))"

Chapter 1 - General Provisions


Chapter 2 - General Rules for Statutes
Chapter 3 - General Rules for Governing Law
Section 1 - Persons
Section 2 - Juristic Acts
Section 3 - Rights in Rem etc.
Section 4 - Obligations
Section 5 - Family Relationships
Section 6 - Succession
Section 7 - Auxiliary Provisions

Chapter 1 - General Provisions


Article 1(Purpose)
This Act shall provide for the general rules on the application of laws.
Chapter 2 - General Rules for Statutes
Article 2(Effective Date of Acts)
An act shall become effective on the twentieth day after its promulgation,
unless otherwise provided for in such act.
Article 3 (Customs Having the Same Effect as Laws)

Customs which are not incompatible with public order and good morals shall
have the same effect as laws if they are authorized by provisions of statutes
or statutory instruments, or concern matters not otherwise prescribed by
such provisions.
Chapter 3 - General Rules for Governing Law
Section 1 - Persons
Article 4 (Capacity to Act)
(1) A person's capacity to act is governed by his/her national law.
(2) Notwithstanding the preceding paragraph, a person shall be deemed to
have the capacity to act, when he/she has the capacity to act under the law
of the place of the act and all the parties of the juristic act are located in
the same jurisdiction at the time of the act, even if he/she is a person with
limited capacity under his/her own national law.
(3) The preceding paragraph does not apply to either a juristic act which is
governed by any law on family relationships or succession, or to a juristic
act involving immovables which are not located in the same jurisdiction as
that of the place of the act.
Article 5 (Order for Commencement of Guardianship, etc.)
A court may issue an order for commencement of guardianship, curator-ship
or assistance (hereinafter referred to as an "order for commencement of
guardianship, etc ") under Japanese law if the ward or person under
curatorship or assistance is domiciled or resident in Japan or has Japanese
nationality.
Article6 (Adjudication of Disappearance)
(1) A court may make an adjudication of disappearance if an absentee was
domiciled in Japan or had Japanese nationality at the time that he or she
was last confirmed alive.
(2) Even if the requirements provided for in the preceding paragraph are not
satisfied, if an absentee has property in Japan, a court may make an
adjudication of disappearance with regard to his/her property. Also, if an
absentee has a legal relationship which either is governed by Japanese
law or has some bearing on Japan in light of the nature of the legal
relationship, his/her domicile and nationality and other circum stances, a

court may make an adjudication of disappearance with regard to such a


legal relationship.

Section 2 - Juristic Acts


Article7 (Choice of Governing Law by the Parties)
The formation and effect of a juristic act shall be governed by the law of the
place which was chosen by the party/parties at the time when the act was
made.
Article8 (No Governing Law Chosen by the Parties)
(1) If there is no applicable law chosen by the party/parties as in the
preceding article, the formation and effect of a juristic act shall be
governed by the law of the place with which the act was most closely
connected at the time the act was made.
(2) In the case of the preceding paragraph, if the characteristic performance
of a juristic act is to be made by one party, the law of his/her habitual
residence (if the party has an establishment which is related to the juristic
act, the law of the place where the establishment is located, and if the
party has several establishments in different jurisdictions which are
related to the juristic act, the law of the place where the principal
establishment is located) is presumed to be the law of the place with which
the juristic act is most closely connected.
(3) Notwithstanding the preceding paragraph, in applying paragraph 1, if
the object of the juristic act is an immovable, the law of the place where
the immovable is situated is presumed to be the law of the place with
which the act is most closely connected.
Article9 (Change of Governing Law by the Parties)
The parties to a juristic act may change the law governing the formation and
effect thereof. However, if the change of the governing law would prejudice
the rights of a third party, the change may not be asserted against such third
party.
Article10 (Formalities of Juristic Acts)

(1) The formalities of a juristic act shall be governed by the law which applies
to the formation of the act (if the applicable law is changed after the
juristic act was made pursuant to the preceding article, it shall be
governed by the law that was previously applicable).
(2) Notwithstanding the preceding paragraph, a juristic act shall be formally
valid if it conforms with the law of the place where the juristic act was
made.
(3) In applying the preceding paragraph, with regard to a declaration of
intention to make a juristic act to a person who is in a different
jurisdiction, the law of the place where the declaration was made is
deemed to be the place where the juristic act was made.
(4) The provisions of the preceding two paragraphs shall not be applicable to
a contract concluded between persons who are in different jurisdictions. In
this case, notwithstanding paragraph 1, the contract shall be formally
valid if it conforms with the law of the place from which the notice of offer
or that of acceptance has been sent.
(5) The provisions of the preceding three paragraphs shall not be applicable
to juristic acts which create or dispose of rights in rent to movables or
immovables, or other rights requiring registration.
Article11 (Special Rules for Consumer Contracts)
(1) Even if the law governing the formation and effect of a contract (except
for a labor contract) that is concluded between a consumer (the term
"consumer" as used in this article means an individual who becomes a
contractual party neither in nor for the purpose of business) and a
business operator (the term "business operator" as used in this article
means a juridical person or other association or foundation, or an
individual who becomes a contractual party in or for the purpose of
business), which is referred to in the following provisions of this article as
a "consumer contract," is, according to a choice or change of governing law
pursuant to Article 7 or Article 9 respectively, a law other than the law of
the place where the consumer habitually resides, the specific mandatory
rules in the law of the consumer's habitual residence shall also apply to
matters subject to such mandatory rules with regard to the formation and
effect of the consumer contract, provided that the consumer expresses

his/her will to the business operator to the effect that such mandatory
rules should apply.
(2) If the parties have not chosen a law to govern the formation and effect of
their consumer contract pursuant to Article 7, the formation and effect of
such consumer contract shall be, notwithstanding Article 8, subject to the
law of the consumer's habitual residence.
(3) Even if a law other than the law of the consumer's habitual residence has
been chosen to govern the formation of a consumer contract pursuant to
Article7, the specific mandatory rules in the law of his/her habitual
residence shall exclusively apply to matters subject to such mandatory
rules with regard to the formalities of the consumer contract,
notwithstanding paragraphs 1, 2 and 4 of the preceding article, provided
that the consumer expresses his/her will to the business operator to the
effect that such mandatory rules should apply.
(4) If the law of the consumer's habitual residence has been chosen to govern
the formation of a consumer contract pursuant to Article 7, and if the
consumer expresses his/her will to the business operator to the effect that
the law of his/her habitual residence should exclusively apply to the
formalities of the consumer contract, the formalities of the consumer
contract shall be governed by the law of the consumer's habitual residence,
notwithstanding paragraphs 2 and 4 of the preceding article.
(5) If the parties have not chosen a law to govern the formation of their
consumer contract pursuant to Article 7, the formalities of the consumer
contract shall be governed by the law of the consumer's habitual residence,
notwithstanding paragraphs 1, 2 and 4 of the preceding article.
(6) The preceding paragraphs 1 through 5 are not applicable in any of the
following cases:
(i) the business operator's establishment which relates to the consumer
contract is located in a jurisdiction other than the jurisdiction of the
consumer's habitual residence, and the consumer goes to the
jurisdiction of the business operator's establishment and concludes a
consumer contract in that jurisdiction; except where the consumer has
been solicited by the business operator to conclude the consumer
contract in that jurisdiction.
(ii) the business operator's establishment which relates to the consumer
contract is located in a jurisdiction other than the jurisdiction of the

consumer's habitual residence, and the consumer goes to the


jurisdiction of the business operator's establishment and receives or is
to receive complete performance by the business operator in that
jurisdiction; except where the consumer has been solicited by the
business operator to receive complete performance to be performed by
the business operator in that jurisdiction.
(iii) at the time the consumer contract is concluded, the business operator
is unaware of the location of the consumer's habitual residence and has
reasonable ground for such unawareness.
(iv) at the time the consumer contract is concluded, the business operator
has misidentified the counterparty as not being a consumer and has
reasonable "round for such misidentification.
Article12 (Special Rules for Labor Contracts)
(1) Even if the law governing the formation and effect of a labor contract is,
according to a choice or change of governing law pursuant to Article 7 or
Article 9 respectively, a law other than the law of the place with which the
labor contract is most closely connected, the specific mandatory rules in
the law of the place with which the labor contract is most closely
connected shall also apply to matters subject to such mandatory rules with
regard to the formation and effect of the labor contract, provided that the
employee expresses his/her will to the employer to the effect that such
mandatory rules should apply.
(2) In applying the preceding paragraph, the law of the place where labor is
to be carried out according to the labor contract (if the place where labor is
to be carried out cannot be identified, the law of the place of the
establishment at which the employee has concluded the employment
contract; the same definition applies to the following paragraph) is
presumed to be the law of the place with which the labor contract is most
closely connected.
(3) If the parties have not chosen a law to govern the formation and effect of
the labor contract pursuant to Article 7, the law of the place where labor is
to be carried out is notwithstanding Article 8, paragraph 2, presumed to
be the law with which the labor contract is most closely connected.
Section 3 - Rights in Rem etc.

Article13 (Rights in Rem and Rights Requiring Registration)


(1) Rights in rem and other rights requiring registration with regard to
movables or immovables shall be governed by the law of the place where
the subject property is located.
(2) Notwithstanding the preceding paragraph, the acquisition and loss of the
rights provided for in the preceding paragraph shall be governed by the
law of the place where the subject property is located at the time when the
events causing the acquisition or loss are completed.
Section 4 - Obligations
Article14 (Negotiorum gestio and Unjust Enrichment)
The formation and effect of claims arising from agency by necessity
(negotiorum gestio) or from unjust enrichment shall be governed by the law
of the place where the events causing the claims occurred.
Article15 (Exception for Cases Where a Manifestly More Closely Connected
Place Exists)
Notwithstanding the preceding article, the formation and effect of claims
arising from negotiorum gestio or unjust enrichment shall be governed by
the law of the place which is manifestly more closely connected with the
negotiorum gestio or unjust enrichment than the place determined pursuant
to the preceding article, considering that the parties had their habitual
residence in the same jurisdiction at the time when the event occurred, the
negotiorum gestio or unjust enrichment has arisen in connection with a
contract between the parties, or other circumstances of the case.
Article16 (Change of Governing Law by the Parties)
The parties to a negotiorum gestio or unjust enrichment may, after the
events causing either to occur, change the law governing the formation and
effect of claims arising there from. However, if the change of the governing
law would prejudice the rights of a third party, the change may not be
asserted against such third party.
Article 17 (Torts)
The formation and effect of claims arising from a tort shall be governed by
the law of the place where the results of the infringing act are produced.

However, if it was not foreseeable under normal circumstances that the


results would be produced at that place, the law of the place where the
infringing act occurred shall apply.
Article 18 (Special Rule for Product Liability)
Notwithstanding the preceding article, the formation and effect of claims
arising from torts which are detrimental to life, body or property of other
persons caused by a defect in a delivered product (the term "product" as used
in this article means any goods which are produced or processed) against a
producer (the term "producer" as used in this article means any person who
produces, processes, imports, exports, distributes or sells the product in the
course of his/her business) or any person who identifies himself/herself as a
producer by indicating on the product to the effect that he/she is presumed to
be a producer (these persons are referred to in this article as "producer, etc.")
shall be governed by the law of the place where the product is delivered to
the victim. However, if the delivery of the product at that place is not
foreseeable under normal circumstances, the law of the place of the principal
establishment of the producer, etc. (if he/she has no establishment, the law of
the place of his/her habitual residence) shall apply.
Article 19 (Special Rule for Defamation)
Notwithstanding Article 17, the formation and effect of claims arising from
defamation against an individual or an entity shall be governed by the law of
the place of such defamed person's habitual residence (the law of the place of
its principal establishment, if the defamed person is a juristic person or other
association or foundation).
Article 20 (Exception for Cases Where a Manifestly More Closely Connected
Place Exists)
Notwithstanding the provisions of the preceding three articles, the formation
and effect of claims arising from a tort shall be governed by the law of the
place which is manifestly more closely connected with the tort than the place
determined pursuant to the preceding three articles, considering that the
parties had their habitual residence in the same jurisdiction at the time
when the tort occurs, the tort constitutes a breach of obligations under a
contract between the parties, or other circumstances of the case.

Article 21 (Change of Governing Law by the Parties)


The parties to a tort may, after the tort has occurred, change the law
governing the formation and effect of claims arising there from. However, if
the change of the governing law would prejudice the rights of a third party,
the change may not be asserted against such third party.
Article 22 (Limitation on Torts by Public Policy (ordre public))
(1) If the rights and obligations relating to a tort shall be governed by a
foreign law, claims for damages or any other remedies under that law may
not be claimed if the actions causing the tort are not unlawful under
Japanese law.
(2) If the rights and obligations relating to a tort shall be governed by a
foreign law, even if the actions causing the tort are unlawful both under
that foreign law and Japanese law, the victim may not claim any greater
recovery of damages or any other remedies than those available under
Japanese law.
Article 23 (Assignment of Receivables)
The effect of an assignment of a receivable in relation to a debtor and other
third parties shall be governed by the law applicable to the receivable which
is to be assigned.
Section 5 - Family Relationships
Article24 (Requirements for Formation of Marriage)
(1) The requirements for the formation of a marriage shall be governed by
the national law of each spouse respectively.
(2) The formalities of marriage shall be governed by the law of the place of
the ceremony.
(3) Notwithstanding the preceding paragraph, formalities that satisfy the
requirements of either of the spouses' national law shall be effective,
unless the marriage is celebrated in Japan by the parties, at least one of
whom is a Japanese national.
Article25 (Effect of Marriage)

The effect of a marriage shall be governed by the spouses' national law, if the
national law of each of the spouses is the same. If that is not the case but
where the law of the spouses' place of habitual residence is the same, the
effect shall be governed by the law of that place. If none of these cases apply,
the effect shall be governed by the law of the place with which the spouses
are most closely connected.
Article26 (Matrimonial Property Regime and Protection of Domestic
Transactions)
(1) The preceding article shall apply mutatis mutandis to the matrimonial
property regime.
(2) Notwithstanding the preceding paragraph, the regime shall be governed
by the law that the spouses choose from among the following laws, where
such choice is made in writing, signed and dated by them. In this case, the
choice shall come into effect ex mine:
(i) the law of the country of either spouse's nationality;
(ii) the law of the place of either spouse's habitual residence; or
(iii) in respect of the matrimonial regime regarding immovables, the law of
the place where such immovables are located.
(3) A matrimonial property regime governed by a foreign law may not be
asserted against third parties without knowledge insofar as it concerns
juristic acts performed in Japan or property situated in Japan. The
matrimonial property regime in such cases as against third parties shall
be governed by Japanese law.
(4) Notwithstanding the preceding paragraph, a matrimonial property
contract concluded in compliance with a foreign law applicable pursuant
to paragraphs J or 2 shall be binding on any third parties insofar as the
contract is registered in Japan.
Article27 (Divorce)
Article 25 shall apply mutatis mutandis to divorce. However, a divorce
shall be governed by Japanese law if one of the spouses is a Japanese
national and has his/her habitual residence in Japan.
Article28 (Determination of Parentage of Child Born in Wedlock)

(1) A child shall be born in wedlock if he/she is considered as such under the
national law of one of the spouses at the time of the child's birth.
(2) If the husband dies before the child's birth, the national law of the
husband at the time of his death shall be deemed his national law in
reference to the preceding paragraph.
Article29 (Determination of Parentage of Child Born Out of Wedlock)
(1) The parentage of a child born out of wedlock with regard to his/her father
shall be governed by the national law of the father at the time of the
child's birth, and with regard to his/her mother, by the national law of the
mother at that time. Concerning the establishment of parentage by
acknowledgment, if the national law of the child at the time of
acknowledgment requires the approval or consent of the child or a third
party as a condition of acknowledgment, this requirement shall also be
satisfied.
(2) With regard to establishment of parentage of a child born out of wedlock
by acknowledgment, it shall be recognized if it is provided for under either
the national law of the acknowledging person or of the child both at the
time of the acknowledgment, irrespective of the result of application of the
governing law pursuant to the first sentence of the preceding paragraph.
In the case where the national law of the acknowledging person shall
apply, the second sentence of the preceding paragraph shall apply mutatis
mutandis.
(3) If the father dies before the child's birth, the national law of the father at
the time of his death shall be deemed the national law of the father as
referred to in paragraph 1. If any of the persons referred to in the
preceding paragraph dies before the acknowledgment, the national law of
that person at the time of his/her death shall be deemed his/her national
law in reference to that paragraph.
Article30 (Legitimation)
(1) A child shall acquire the status of a child born in wedlock, if the child is
legitimated according to the national law of the father, the mother or the
child at the time when the requirements for legitimation are completed.
(2) If a person referred to in the preceding paragraph dies before the
requirements for legitimation are completed, his/her national law at the

time of his/her death shall be deemed his/her national law in reference to


that paragraph.
Article31 (Adoption)
(1) Adoption shall be governed by the national law of the adoptive parent at
the time of the adoption. If the national law of the adopted child requires
for adoption the approval or consent of the adopted child or a third party,
or the permission or any other disposition by a public authority, such
requirements shall also be satisfied.
(2) Termination of relationships as relatives between an adopted child and
his/her blood relatives and dissolution of the adoptive relationship shall be
governed by the law determined under the first sentence of the preceding
paragraph.
Article32 (Legal Relationship between Parents and Child)
The legal relationship between parents and their child shall be governed by
the national law of the child if it is the same as the national law of one of the
parents (if one of the parents is dead or unknown, as the national law of the
other parent). In other cases, it shall be governed by the law of the child's
habitual residence.
Article33 (Other Relationships between Relatives, Etc.)
In addition to what is provided for in Articles 24 to 32, relationships between
relatives as well as rights and duties arising there from shall be governed by
the national law of the party concerned.
Article34 (Formalities of a Juristic Act Involving Family Relationships)
(1) The formalities of a juristic act involving family relationships provided for
in Articles 25 to 33 shall be governed by the law applicable to the
formation of the act.
(2) Notwithstanding the preceding paragraph, such juristic act shall be
formally valid if it conforms to the law of the place where the act was
made.
Article35 (Guardianship, Etc.)

(1) Guardianship, curatorship or assistance (hereinafter referred to as


"guardianship, etc.") shall be governed by the national law of the ward or
person under curatorship or assistance (referred to as "ward, etc." in the
following paragraph).
(2) Notwithstanding the preceding paragraph, if a foreign national is a ward,
etc., an order to appoint a guardian, curator or assistant, or other orders
concerning guardianship, etc. shall be governed by Japanese law, if(i) according to the national law of the foreign national, the requirements
for guardianship, etc. are satisfied but no one undertakes the duties of
guardianship, etc. in Japan, or
(ii) a court has made in Japan an order for commencement of guardianship,
etc. of the foreign national.
Section 6 - Succession
Articles 36 (Succession)
Succession shall be governed by the national law of the decedent.
Article 37 (Will)
(1) The formation and effect of a will shall be governed by the national law of
the testator at the time of the creation of the will.
(2) Revocation of a will shall be governed by the national law of the testator
at the time of the revocation.
Section 7 - Auxiliary Provisions
Article 38 (National Law)
(1) If a person has two or more nationalities, the law of the state where
he/she has his/her habitual residence shall be his/her national law insofar
as his/her nationality is from that state. If he/she does not have his/her
habitual residence in any of the states whose nationality he/she has, the
law of the state with which he/she is most closely connected shall be
deemed to be his/her national law. However, where one of his/her
nationalities is Japanese, Japanese law shall be deemed to be his/her
national law.
(2) In the case where the national law of a person shall apply but the person
has no nationality, the law of his/her habitual residence shall apply.
However, this shall not apply to the case where Article25 (including the

cases where it is applied mutatis mutandis pursuant to Article 26,


paragraph 1 or Article 27) or Article 32 applies.
(3) Where a person is a national of a state where different systems of law
exist in its respective regions, the law determined in accordance with the
rules of that state (if there are no such rules, the law of the region with
which he/she is most closely connected) shall be deemed to be his/her
national law.
Article 39 (Law of Habitual Residence)
Where the law of a person's habitual residence shall apply but his/her
habitual residence cannot be identified, the law of his/her residence shall
apply. However, this shall not apply to the case where Article 25 (including
the cases where it is applied mutatis mutandis pursuant to Article 26,
paragraph I or Article 27) or Article 32 applies.
Article 40 (Law of States or Places Where Different Systems of Law Apply to
a Respective Group of People)
(1) Where a person is a national of a state where different systems of law
apply to a respective group of people, the law determined in accordance
with the rules of that state (if there are no such rules, the law with which
he/she is the most closely connected) shall be deemed to be his/her
national law.
(2) The preceding paragraph shall apply mutatis mutandis where the law of
a person's habitual residence is to apply in accordance with Article 25
(including the cases where it is applied mutatis mutandis pursuant to
Article 26, paragraph 1 or Article 27), Article 26, paragraph 2 (ii),
Article32 or Article 38, paragraph 2, and different systems of law apply to
a respective group of people in the place of his/her habitual residence. Also,
it shall apply mutatis mutandis where the law of the place with which
spouses are most closely connected is to apply and different systems of law
apply to a respective group of people in that place.
Article41 (Renvoi)
Where a person's national law applies and the rules of that law require that
Japanese law should apply, then Japanese law shall apply. However, this
shall not apply to a case where the person's national law is to apply in

accordance with Article 25 (including the cases where it is applied mutatis


mutandis pursuant to Article 26, paragraph 1 or Article 27) or Article 32.
Article 42 (Public Policy (ordre public))
Where a foreign law is to apply but its application would be contrary to
public policy (ordre public), it shall not apply.
Article 43 (Exclusion from Application)
(1) The provisions of this Chapter, except for the main clause of Article 39
shall not apply to maintenance obligations arising from marriage,
parentage, or any other family relationships.
(2) The provisions of this Chapter, except for the main clause of Article 38,
paragraph 2, the main clause of Article 39, as well as Article 40 in its
entirety, shall not apply to the formalities of wills.

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