By spending money in our daily life, we get food and clothes, everyday items, home appliances, cars, etc. and use various services. This is called consumer life.

In this video, let’s learn about the basic knowledge of the contract to avoid having consumer problems.

Which of the following applies to the contract?

1. To rent an apartment
2. To have a haircut at the barber shop
3. To buy a ticket and get on the train
4. To watch a movie at a movie theater

Actually, all of these are a contract act.

If you mutually agree on the contents and price of goods, delivery time, etc. between consumers (customers) and businesses (distributors) by using products trading and services, contracts can also be done orally.

The contract is for retaining the evidence of what kind of agreement it contracted. Even if it is different from the promised content, signing it means you have accepted the contract with all it’s written contents, so let’s check the contents of the contract carefully before stamping or signing.

It is necessary to be careful because the contract is a “promise with legal responsibility”. In case of a sales contract for goods, the “right to receive payment” and the “obligation to deliver the products” to the customers are generated on the seller side, and the consumer side incurred the “right to receive goods” and “obligation to pay the price”.

Then, in what case can you cancel the contract?

Which of the following can you return or exchange?

1. As I opened the box, there was something different from what I ordered
2. I bought clothes, but I do not like the color
3. I bought a prefabricated bookshelf, but the parts that were supposed to be in it are not there
4. The goods I bought were sold at a cheaper price at the other shops

 Only 1 and 3 can be returned or exchanged.

If you enter into a contract, you can not cancel your contract without permission and at your convenience. In other words, if you make a contract to purchase according to the will of the consumer, the seller has no obligation to respond to returns/exchanges, unless it is a misdelivery (item 1) or a defective (item 3).

However, in the following cases, the contract can be canceled:

1. In case of entering a contract due to fraud or intimidation
2. When a minor or a person who has no judgment enters a contract
3. If the contract is not fulfilled (breach of contract)
4. When there is a defect in the product (warranty against defect)
5. When it falls under the reason specified by law such as the cooling off system
6. When you reach an agreement to cancel the contract with each other

In other cases, you may be able to cancel the contract based on the “Consumer Contract Law”.

*Information on the Consumer Contract Law：

http://mieinfo.com/ja/jouhou/sonota/shouhisha-keiyakuho-ni-tsuite/index.html

Lastly, let’s learn about contracts done by a minor.

If minors, who have less social experience, enter into a contract without the consent of the legal representatives (guardians such as parents), it is possible to cancel the contract. This is called “cancellation of a contract by minors”.

Which of the following contracts made by minors can be canceled?

1. Contracts paid with money from small allowances
2. The minor lied about their age to enter a contract
3. The minor signed and stamped the parents’ column without prior consent
4. If the minor is married but still underage

 All those items cannot be canceled.

The 3 conditions under which minors can be canceled are as follows.

1. The age at the contract is under 20 years old
2. The contracting parties are unmarried
3. If the legal representatives (guardians such as parents) do not agree

If spending outside the range of freely usable money allowance permitted by a legal representative or when a minor who signs or stamps the parents’ field without permission (example 3) to gain consent from parents, it will be difficult to cancel.

In the present age, various new products and convenient services are appearing one after another. Thanks to these, our lives are becoming more comfortable and prosperous. However, at the same time, various new consumer troubles are also occurring.

If we keep buying products, any person may encounter consumer troubles.

Once involved in consumer troubles, it may take a lot of time and effort to solve it, or it may be difficult to solve.

For consumers to have a peace of mind, it is very important to first learn about contracts and to prevent consumer problems.