The Japanese Place Importance on Trust Rather Than Contract

Before doing business a contract is made, and in Western countries generally the written contract holds absolute effect. Therefore, they write even details in the contract. However, many Japanese think it is the same ? whether you have a contract or not ? if one of the parties does not respect the agreement.

In Japan it is common to begin doing business with someone once you have judged them to be reliable. It is not unusual to enter into business even without a contract, which is considered to be rather a formality except in the case of important contracts. Some people even take it that they are not trusted when you prepare a contract in which very detailed articles are described.

When a problem comes up, Japanese give priority to continuing trading, trying to solve the problem through discussion, rather than referring to what is written in the contract. So, it takes time to start business with Japanese companies, but once trade is started you can often enjoy a long and fruitful business relationship.

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