The revised Civil Code went into effect in April and the rules for contracts related to daily life have changed significantly. It is indispensable to have understanding of this permeate society.
This was the first drastic revision in the field of contracts since the Civil Code was enacted in the Meiji era (1868-1912). The noteworthy traits are that it has codified an accumulation of judicial precedents in statutory form and revised the content to reflect changes in the times, such as the spread of online transactions.
For example, the revised law obliges landlords to return the deposit for rental housing when renters leave. It also stipulates that renters will be under no obligation to restore the rented property to its original condition because of deterioration over time or damage from normal use.
Returning the deposit can be said to be a basic rule of social life, but it has often become a bone of contention because there was no provision in the law. It is expected that the enforcement of the law will lead to a reduction in problems.
The public has broadly taken to online shopping and provisions on general conditions or terms of use were also newly established. Items that unilaterally impair the interests of consumers will be invalid.
Not many people carefully read lengthy general conditions written in fine print. Taking advantage of this, there were always malicious business operators who tried to slip unjust items into the general conditions. The revised law will have a certain deterrent effect against acts of concluding such fraudulent contracts.
However, if there is wording such as "general conditions constitute the contents of a contract," the contract is concluded, even though a consumer does not understand it. It is important to come up with wording that makes it easy for consumers to understand essential items including the amount of payment and the period of a contract.
Three years were set as a get-acquainted period from the revisions' enactment to enforcement this time, which was longer than ordinary law revisions. This is because that it revised around 200 items, which will reach a wide range of fields.
Many companies have been reviewing the contents of their contracts. But lawyers in charge of the contracts are still receiving many consultations from companies. Some companies are said to be exploring ways to make contracts that are even slightly more advantageous to them.
Companies are required to take appropriate measures with consideration for the purpose of the revised law, which places priority on protecting consumers.
It is hard to say that people's understanding of the revised law has deepened enough. The Justice Ministry produced an educational cartoon on the revised Civil Code, and posted it on the internet late last year. Working together with related organizations such as bar associations and consumer affairs bureaus, the ministry should think hard about further publicizing the revised law.
When entering into any contract, consumers should exert extreme caution with the consciousness of a concerned party in order to avoid situations they may come to be compelled to accept. It is hoped that the consumers do not forget this.
-- The original Japanese article appeared in The Yomiuri Shimbun on April 29, 2020.
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