Case029: court acknowledged the validity of cancellation based on 9 months’ half-payment


  • Tokyo District Court acknowledged the validity of cancellation of building lease contract based on 9 months’ half-payment.

Parties of the Case

  • An individual building owner vs. An individual tenant (tenant)


  • Claim to surrender a building based on cancellation of lease contract

Location and Purpose of Use of the Building

  • The first basement floor of a building in Tokyo for a restaurant


  • 600,000 yen per month


  • When the tenant only paid half amount of the rent (300,000 yen per month) for 9 months, the lender demanded to pay unpaid rent within 7 days, and manifested conditional intention to cancel the contract if the tenant did not pay them within the period.
  • As the tenant denied payment, the lender demanded eviction based on cancellation of the lease contract.
  • The tenant argued that there was trouble to use the building after the Great East Japan Earthquake as the lender did not do enough maintenance. The tenant also argued that the tenant demanded reduction of the rent from 600,000 yen to 300,000 yen.
  • The court denied the tenant’s allegations because the lender took emergency measures asking qualified architect with a first-class license. The court also judged that the tenant had to pay prior amount of the rent until judgement reducing the rent became final and binding (Act on Land and Building Leases Article 32 (3)).
  • The court acknowledged that the lease contract was validly cancelled based on nine months’ half-payment of the rent.