GUARANTY CONTRACTS GUARANTEED
KEYWORDS: CONTRACTS, GUARANTY

Two Japanese court rulings proved that contracts of debt guaranty were without a doubt valid under Japanese law. One case involving the guaranty of a member of the Japanese parliament, ended with his bankruptcy when the Kumamoto District Court found the contract valid. In another case, a similar contract involving the 92 year old former chairman of a major, but bankrupt, department store chain, Sogo Department Stores, the Tokyo High Court found the contract valid. The defendant pleaded age, he did not understand, the bank promised it was only a formality etc. but the court disagreed. They noted that the gentleman had even taught law at a famous university. Another contract was ruled invalid however. That the was contract where he tried to transfer real property to his brother-in-law only weeks before the department store collapsed.

Copyright 2005. All rights reserved Attorney Roderick H. Seeman

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