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Contract

A "contract" is an agreement made by two or more parties, in which a claim arises. In other words, by entering into a contract, some obligations and rights arise, and they are legally binding with respect to each other's obligations and rights. Contracts are legally binding because they differ from mere commitments, and civil law and other laws stipulate the content and type of contract.In other words, if one party does not comply with the terms of the contract, the other party may use its rights to make the other party comply with the obligations of "to abide by a contract".

Comparison with laws and regulations

The followings are the definitions for each term.

Statutes (law)

"Statute" is a general term for "law" which can be a rule established by the national government, "Cabinet Order" established by the Cabinet based on laws, and "ordinance" established by local governments. Since the contents stipulated by laws and regulations applying to all citizens, everyone has duties and rights stipulated by laws. In other words, laws and regulations are universal rules.

Contract

In contrast with laws mentioned above, because contracts are only promises among parties, they only apply to a limited number of people and not everyone

Differences between statutes and contracts

Contracts are basically made in accordance with laws and regulations, but based on the "principle of freedom of contract" which leaves the parties concerned freedom and the state should not interfere as much as possible. In other words, contents of contract are allowed to be freely decided among the parties concerned.

In many cases, contracts tend to take precedence over laws and regulations, so when you want to make an original promise that is different from laws and regulations, you make a contract.

However, there are certain statutory provisions "mandatory legislation (mandatory provision)" that apply regardless of the intent of the parties to the contract. Compulsory regulations apply to contracts of any kind and always give precedence to laws and regulations over contracts, as long as they are related to laws protecting vulnerable people such as workers and tenants (Labor Standards Act, Land and Building Lease Law, etc.).

For example, if a company makes a contract that have employees to work at unreasonably low wages, it violates the provisions of the Labor Standards Act, so a compulsory law is applied.

In other words, the legally binding power over the contract depends on the contents of the contract.

Points to check when contracting

There are many cases where contracts are entered into solely for the purpose of "to enter into a contract". However, since the agreement specifies the details of work duties, etc., there is a possibility of causing trouble if the parties do not understand the contents of the agreement. Therefore, even if the parties to the contract find it troublesome to read the contract, it is important to confirm the contents before both the company and the worker sign the contract. The contents of the contract are described in the "provision of the text" section of the contract.

Also, instead of accepting all the conditions, if there are unacceptable conditions, you can ask the other party to reconsider them, which will lead to avoiding troubles in the contract.