Act on General Rules for Application of Laws*

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

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)

*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 [Hō no Tekiyō ni Kansuru

Tsūsokuhō], Law No. 10 of 1898 (as newly titled and amended 21

June 2006),” 8(1) ASIAN-PACIFIC LAW & POLICY JOURNAL 139

(Fall 2006))"

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.