Corporate Law

Q. We commissioned a ¥5M web system but the deliverable is full of bugs and unusable. Can we pursue contract non-conformity liability?

A.

If bugs violate specs, pursue repair, reduction, termination, or damages under contract non-conformity. Clear specs are key.

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For contract work (Art. 632), contract non-conformity liability (Art. 562-564) applies. Options: demand repair, reduce payment, claim damages, or terminate if purpose cannot be achieved (Art. 564→541/542). Vague specifications make proving non-conformity difficult. Notify within 1 year of discovering defects (Art. 637(1)). Steps: list bugs vs. specs, formally demand repair, then pursue reduction/damages/termination through a lawyer.
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.

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