Column ・ Property Management ・ Vol.38

How to Draft Special Provisions in a Lease: What Makes Them Valid, and What Tends to Be Invalid

Writing a special provision into the contract doesn't guarantee it holds up. Here's how to think about what makes a special provision valid, and examples of ones that tend to be invalidated.

Some owners assume that as long as a special provision (tokuyaku) is written into the contract, it can shape the terms however they like — but there are requirements a special provision must meet to be recognized as valid. Building on the cost-allocation concepts covered in the restoration-to-original-condition (genjō kaifuku) guidelines, here's an overview of what makes a special provision valid and examples of ones that tend to be invalidated.

Key points in this article
  • A special provision (tokuyaku) is a term the parties agree to that differs from the law's default, non-mandatory rules, and they're widely used in leases.
  • For a special provision to be recognized as valid, its content generally needs to be clear, and the tenant needs to have reasonably understood and agreed to it.
  • Under the Consumer Contract Act, a clause that one-sidedly disadvantages a tenant who counts as a consumer can be ruled invalid.
  • Monetary provisions such as shikibiki (a non-refundable portion of the deposit) can be ruled invalid if the amount is excessive relative to the rent and the length of the lease.
  • A provision that puts the cost of repairing normal wear and tear (tsūjō sonmō) on the tenant carries a risk of being ruled invalid if the scope and amount are left vague.

What Is a Special Provision? Its Place in a Lease

A special provision (tokuyaku) is a term the parties agree to include in a contract that differs from the law's non-mandatory default rules. In leases, special provisions are used for all sorts of things — the scope of restoration work, renewal fees, prohibited acts, and more. Special provisions themselves are permitted under the principle of freedom of contract, but it's worth noting that depending on their content, they can later be ruled invalid.

The Basic Requirements for a Special Provision to Be Valid

For a special provision to be recognized as valid, it's generally considered important that the scope and content of the work or cost involved be specific and clear, that it be objectively recognizable that the tenant understood and agreed to the content, and that the content stay within a range considered reasonable by common social standards. Beyond simply being written into the contract as a clause, whether it was fully explained to the tenant — for instance, during the important matters explanation (jūyō jikō setsumei) — can also factor into judging its validity.

Examples of Provisions Prone to Being Ruled Invalid (and the Consumer Contract Act)

The Consumer Contract Act provides that a clause which one-sidedly harms the interests of a consumer, or an unfair clause that imposes an excessive burden on a consumer, can be ruled invalid. In leases too, a special provision whose content one-sidedly disadvantages the tenant carries a risk of being ruled invalid under this Act. When drafting a special provision, it's necessary to think not just about the landlord's convenience but about whether the content stays within a reasonable range.

Points to Watch With Special Provisions on Restoration

The restoration-to-original-condition guidelines treat the cost of repairing wear and tear from normal use (tsūjō sonmō) as something the landlord should bear in principle. If you want a provision that shifts this cost to the tenant, you need to clarify the scope of the work and give a clear indication of the amount the tenant would bear, and it must be recognizable that the tenant understood and agreed to it. A provision that imposes a one-sided burden with the scope or amount left vague risks being ruled invalid.

Practical Tips for Drafting Special Provisions

To make a special provision hold up, it's advisable not only to write the clause in clear language in the contract but also to explain it verbally during the important matters explanation and give the tenant a chance to ask questions. Especially for provisions that involve a monetary burden — shikibiki, or shifting restoration costs to the tenant — spelling out the amount and how it's calculated helps prevent trouble later.

Cases Where Special Provisions Tend to Cause Trouble, and How to Prevent It

Much of the trouble that arises around special provisions follows the same pattern: the explanation at signing was inadequate, and the content of the provision only becomes an issue at move-out. Even if you reuse a standard contract template, it's advisable to periodically review whether the special provisions still hold up against current law and case-law thinking. When drafting or reviewing a special provision, we recommend having it checked by a professional such as a lawyer, depending on the content.

Frequently Asked Questions

If I put a special provision in the lease, does it become valid even if it favors the landlord?

Not necessarily. If the content is judged, under the Consumer Contract Act, to one-sidedly disadvantage the tenant as a consumer, the special provision itself can be ruled invalid.

When does a shikibiki provision become a problem?

It's said that if the amount is excessive relative to the rent and the length of the lease, a shikibiki provision can be ruled invalid under the Consumer Contract Act. Whether the amount stays within a range considered reasonable by common social standards is a key factor.

Is a provision that puts the cost of repairing normal wear and tear on the tenant valid?

There's room for such a provision to be valid if the scope and amount are clear and it's recognizable that the tenant understood and agreed to the content — but a provision that imposes a one-sided burden with the scope left vague risks being ruled invalid.

Summary

Special provisions let you shape a contract's terms flexibly, but if the content is judged unfair under laws like the Consumer Contract Act, they risk being invalidated. When drafting a special provision, it's important to clarify the scope and amount and to fully explain it to the tenant. For the validity of any specific provision, we recommend confirming with a professional such as a lawyer.

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