JapanWhat specifically constitutes misrepresentation?
In Japan, misrepresentation is not defined as a standalone civil wrong but may constitute fraud (sagi) under the Civil Code, which requires intentional deception about material facts that induces another party to act.
What the Law Says
Japanese law does not use the common law term 'misrepresentation' but addresses equivalent conduct through the concept of fraud (sagi) in the Civil Code. Fraud renders a declaration of intention voidable if certain statutory conditions are met.
Under Article 96, paragraph 1 of the Japanese Civil Code, a declaration of intention made as a result of fraud by a third party is voidable if the other party knew or could have known of the fraud.
Fraud requires (1) an intentional false statement or concealment concerning a material fact, (2) made with the purpose of inducing the other party to act, (3) actual reliance by that party, and (4) resulting damage or disadvantage.
The deceived party must exercise the right to rescind the contract within five years from the time the fraud was discovered — and in any case, within twenty years from the time of the declaration.
Statutory TextA declaration of intention made as a result of fraud by a third party is voidable if the other party knew or could have known of the fraud.
— Civil Code of Japan, Art. 96(1) — Effect of Fraud
What to Do
Confirm whether the false statement was intentional and concerned a material fact affecting consent.
Gather evidence showing the other party knew or should have known of the deception.
File a notice of rescission (kaijo) with the other party within five years of discovering the fraud.
If disputed, file a petition for confirmation of rescission in summary court (kanshi saibansho).
Sources
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US-New YorkNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.