It depends on the industry of your business, but most of the cross-border businesses move forward following the steps below.
It’s quite important to do a credit check for cross-border transactions. If your business partner defaulted or didn’t pay, it would cost to collect the debt more than the it happened for domestic transaction.
It’s good to take care of payment conditions. You can make the draft easier to collect debts if you draft it appropriately.
Cross-border transaction has challenges to collect debts because the judgment by the court in one country will not work in another country because of jurisdiction issue.
Therefore, there is significant need to do a credit check beforehand.
In case that you invest to real estate in Japan, you have to check various real estate regulations in Japan.
For example, it’s good to know real estate registration system called “Toki” in Japan. It is a database of the history of real estate transactions. You can trace the previous owner of the land as long as it’s registered. Most of the transaction has been registered because it is official evidence to acquire the land or building. It’s different from US system.
Or you have to know the land use regulations. Even though Japanese cultural asset regulations are different from US one, there will be another type of regulations for each development.
If it’s a domestic transaction, you can revise a contract used for the previous transaction similar to your case. It might suffice your needs.
However, if it’s cross-border transaction, it depends on the country since each country has different business custom, regulations, and so forth.
Therefore, it’s not easy to formulate a cross-border transaction. You need an international lawyer to prevent disputes beforehand.
Recently, AI topic has popped up for due diligence and contract check. If you just check formality of the contract or revise something not related to the content, it could be useful.
Meantime, I don’t recommend you use AI to analyze the contents of the contract.
That’s because AI might not know risks especially for your company or in your industry. If AI learned those, it might be useful but the learning process could be much difficult because of the complexity.
We could hear through “ChatGPT” topics lately that Japanese language is quite difficult since it has Chinese character, Katakana, and Hiragana. Intrinsically, its translation is difficult.
Meaning, it’s quite difficult to deal with the above risks, analyze those, and translate those into Japanese.
It’s necessary to learn Japanese laws and US laws to deal with those matters since it requires plural viewpoints to analyze those. If you don’t know those clearly, you will miss important parts of the transactions.
If you face the above situations, please kindly feel free to reach out to Hattori Law. We have a lawyer admitted in Japan and New York.
We will have a meeting to discuss your business in detail. We support almost everything, not only legal matters but also business matters.
Please feel free to contact us.
Hattori Law
Contact Us: https://www.hrtlawfirm.com/contact-us/
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