Our society is built on rules. Understanding the basics of contracts and law is the first step toward becoming a wise citizen.
Basic Knowledge
Rules include moral rules, customs, organizational rules, and the nation's laws. Laws have binding force, and violations are subject to penalties.
A contract is a legal promise established by agreement between the parties. We make many contracts in daily life, such as a purchase contract when shopping at a convenience store and a transportation contract when riding a train. In principle, a contract is established even by a verbal promise.
Basic principles of contracts:
・Principle of freedom of contract: freely deciding whether to conclude a contract, with whom, and on what terms
・Principle of good faith: performing the contract honestly
If a minor (under 18) enters into a contract without parental consent, the contract can, in principle, be canceled. Since the age of adulthood was lowered to 18 in April 2022, contract problems among young people have increased, so caution is necessary.
Law (a binding rule enacted by the National Diet)
Contract (a legal promise established by agreement between the parties; a verbal promise is also sufficient)
Principle of freedom of contract (the principle that the conclusion, partner, and terms may be freely decided)
Age of adulthood (18 since April 2022; contracts can be made independently)
Minor's right to cancel (a person under 18 can cancel a contract made without parental consent)
Unfair business practices (including pyramid schemes, spiritual sales, and aggressive street sales)
Further Study (Background and Significance)
Because the age of adulthood was lowered from 20 to 18, 18- and 19-year-olds can no longer use the minor's right to cancel. They can make a credit card, take out a loan, or sign a rental contract without parental consent, but they are also more likely to be targeted by unfair business practices.
Places to seek advice when involved in a problem include the Consumer Affairs Center (Consumer Hotline 188), the police, and Houterasu. The cooling-off system allows a contract to be canceled unconditionally within a certain period.
Law does not only restrict us; it also protects us. The ability to use it effectively (legal literacy) is important in modern society.
- Law = binding force and penalties for violations
- A contract is generally established even by a verbal promise
- Principle of freedom of contract
- Age of adulthood = 18 (since April 2022)
- Minor's right to cancel = applies to people under 18
- Consumer Hotline = 188
- Relief may be available through the cooling-off system
Points to Note (Easily Confused)
① In principle, a contract is established even by a verbal promise. A written document is required only for special types of contracts. ② The age of adulthood has been 18 since 2022. Drinking, smoking, and public gambling remain restricted to those aged 20 and over. ③ The minor's right to cancel applies to people under 18. ④ The cooling-off system does not generally apply to mail-order sales.
Practice
- In what year was Japan's age of adulthood lowered, and to what age?
- What is the telephone number for consumer trouble consultations?
- A contract cannot be established without a written document. True or false?