4.Contract Drafting, Review and Negotiation

Q11 (Oral Promises)

If I make an oral promise, but a written contract is not executed, may I understand that there is no contract?

In Japan, the requirement for contract formation is an expression of mutual intention, so even an oral promise without a written agreement can result in a contract (although one exception is that a guarantee must be in writing). Accordingly, you cannot claim that there is no contract just because there is no writing. On the other hand, in the event of a dispute, it will be difficult to prove the existence and content of a contract without a writing. So, as a practical matter, it is important to execute a written contract.

(Posted: January 27, 2012)