Understanding the Impact of Mental Reservation on Contracts: A Comprehensive Legal Guide

Understanding the Impact of Mental Reservation on Contracts: A Comprehensive Legal Guide

Question from a reader:
Please tell me about “shinji ryuhou” (hidden intention). If the other party knows or could know the true intention of the declarant, why does that make the contract invalid? Could you explain it in an easy-to-understand way?

What is Shinji Ryuhou? Its Legal Significance and Practical Impact

Have you ever heard the term “shinji ryuhou”? This legal term
is an important concept in contracts, but it may not be familiar to the general public. As someone who majors in psychology, I find the concept of shinji ryuhou to be an intriguing topic. In this article, I will explain shinji ryuhou in detail and clarify its legal meaning in an easy-to-understand manner.

Basic Definition of Shinji Ryuhou

Shinji ryuhou refers to a situation where, on the surface, there seems to be a willingness to enter into a contract, but in reality, the true intention is hidden behind it. In other words, the declarant (the person trying to enter into a contract) appears to agree to the terms of the contract, but actually has no intention of entering into that contract. For example, let’s say you made plans to go out for dinner with a friend. However, in your heart, you are thinking, “I don’t want to pay.” In this case, on the surface, you are entering into a contract to “have dinner with a friend,” but your true intention is “I don’t want to pay.” This is an example of shinji ryuhou.

The Impact of Shinji Ryuhou on Contracts

Now, why does a contract become invalid when there is shinji ryuhou? There are several points to consider. First, contracts are established based on “agreement.” This means that both parties must have the same intention and agree to the terms. If one party is hiding their true intention, then the content of the agreement is distorted and not based on true will. Next, if the other party knows or could know that intention, they can no longer have a reasonable expectation of entering into that contract. For instance, if you entered into a dinner agreement with a hidden intention of “not planning to pay,” your friend would be preparing based on the assumption that you would pay. If your true intention were to become clear, your friend would lose trust in that agreement and suffer a disadvantage. This is one reason why it leads to the invalidation of the contract.

Examples of Shinji Ryuhou

Let’s look at a specific case to see the impact of shinji ryuhou. Suppose a company is launching a new product and advertises to consumers, “This product is perfect for everyone.” However, if they actually know that the product is only suitable for a specific group of people, this constitutes shinji ryuhou. During the process of entering into contracts, consumers may be misled, and as a result, the contract could become invalid. In this case, consumers make their own decisions when entering into the contract, but that judgment is distorted by shinji ryuhou. Because the company is hiding its true intention, consumers are unable to make a reasonable judgment.

The Psychological Aspect of Shinji Ryuhou

From a legal perspective, shinji ryuhou is interesting, but it is also fascinating from a psychological standpoint. Sometimes, humans try to maintain relationships with others by hiding their true intentions. They may bend their will to meet social pressures or expectations. For example, in a business setting, one might participate in a project they do not truly want to be involved in. At this time, they might say, “This project will succeed,” while actually thinking, “I don’t want to do this work.” Such shinji ryuhou affects not only legal issues but also interpersonal relationships and social dynamics.

Avoiding Shinji Ryuhou

Considering the impact of shinji ryuhou on contracts, transparency is crucial when entering into agreements. Clearly stating your intentions and communicating them to the other party is essential for building trust. Whether in business dealings or personal promises, being honest with the other party is important. If you have a hidden intention, organizing that intention and communicating it to the other party can help avoid trouble. For example, in a business context, by honestly expressing, “I have some concerns about this project,” the other party is likely to understand and cooperate.

Conclusion

Shinji ryuhou is an important concept in contracts and should be considered from both legal and psychological perspectives. If one can know the true intention of the other party, the contract is likely to become invalid. This is because the principles of agreement and reasonable expectations are compromised. Finally, to avoid shinji ryuhou, it is vital to maintain transparency and be honest with the other party. By doing so, you can build better relationships and feel more secure when entering into contracts. I believe that by deepening our understanding of shinji ryuhou, we can positively influence not only legal matters but also our social lives.