Business outsourcing contracts in Japan come in two types: “Contract for Work” (請負契約) and “Quasi-Mandate Contract” (準委任契約). Notes on these two types of contracts.
| Contract for Work (請負契約) | Quasi-Mandate Contract (準委任契約) | |
|---|---|---|
| Contractor’s obligation | Obligation to complete the work | Duty of care of a good manager |
| Deliverable | Required | Not required |
| Payment timing | Simultaneously with delivery of deliverable | After completion of the service act |
| Warranty liability | Yes | Not stipulated |
| Mid-term cancellation | Client can cancel the contract | Either party can cancel at any time |
| Subcontracting | Allowed | Generally not allowed |