Knowledge of Contract you should know_Osaka Municipal Consumers' Center

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Many contracts can be seen everywhere in our daily life. For example, we make contracts in various occasions like shopping at stores or having meal in restaurants or riding cars and trains or making phone calls.

Definition of Contract	Definition of Guarantor
Verbal commitment has been agreed between seller and buyer, which shall be effective as a contract without impression of a seal. Once the contract is made, it is impossible to cancel it unilaterally except a special case such as Cooling-off system. If the contract is cancelled, there are many cases in which cancellation charge would be claimed by other party.	A Guarantor is qualified to guarantee a dept. However there are two type of Guarantor, one is Guarantor itself, and the other is a joint Guarantor. A Guarantor is legally responsible for payment of dept on behalf of a debtor who became insolvent. But a joint Guarantor is responsible for liabilities even when a debtor is not in a state of insolvent if payment of debt is claimed.
Definition of Contract on credit
Recently, we are able to purchase goods without cash utilizing loans or credit cards. Credit contract is built upon consumer’s trust with intention of repayment and repayable economic potential. Credit loan company will make payment of reimbursement for the price of the products in place of consumers. Then consumers refund to Credit loan company or Credit card company by lump-sum payment or by installments.

1,Application for credit contract
2,Credit research
3,Delivery of goods and services
4,Reimbursement for price of goods
5,Payment for goods(by lump-sum or by installments)

When suspension of payment is available

Under the credit contract, consumers are able to offer suspension of payments to thecredit loan companies whenever they suffer from no delivery of goods and defective goods or no teaching services due to the closure of English conversation classes. The suspension of payment is called “Right of defense”.

Precaution to credit transactions

1,Payment on credit means you are on dept. You should make contract on credit within your capacity which allows you to repay even in the unpredictable situation such as sickness.
2,You should understand contract details such as commission or terms of repayment.
3,Be sure to receive contractual document and bill settlement and verify its details.
4,Do not have a excessive number of credit card issued to yourself.
5,Never to lend others your credit card or name: when you are not intended to purchase goods, do not write your name on a purchase contract.
6,When your credit card are lost or stolen, report it to the police and a credit card company immediately.

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Definition of Contract

Definition of Guarantor

Definition of Contract on credit