I signed a contract based on misrepresentation. Can I cancel it?

What the Law Says

Japanese law allows cancellation of contracts entered into due to misrepresentation, treating them as voidable — not automatically void — if certain conditions are met.

Under the Japanese Civil Code, a contract formed based on misrepresentation is considered 'voidable' — meaning it remains valid until the injured party chooses to cancel it.

The right to cancel arises only if the misrepresentation was material (i.e., it influenced your decision to contract), and you were unaware of its falsity at the time of signing.

You must exercise the right to cancel within five years from the time the contract was concluded — or within five years from when you discovered the misrepresentation, whichever comes later.

Cancellation must be communicated clearly and immediately to the other party; silence or delay may waive the right.

Statutory Text

A juristic act performed as a result of fraud or coercion may be rescinded.

— Civil Code, s. 96 — Rescission of Juristic Acts Due to Fraud or Coercion

Statutory Text

The right to rescind a juristic act due to fraud shall be extinguished by prescription after five years from the time the act was performed or from the time the fraud was discovered, whichever is later.

— Civil Code, s. 126 — Period of Prescription for Rescission

What to Do

Sources