The Diet on Friday revised the Civil Code to clarify the terms of contracts between businesses and consumers for online shopping, life insurance and other transactions.

The revision sets forth criteria for when the terms of contract can be nullified.

For example, terms deemed one-sidedly disadvantageous to consumers can be invalidated under the revised law. But it stipulates that a contract takes effect once a consumer agrees to its terms, even if that person does not understand the contents.

Until now, the Civil Code had no provision on contractual clauses, a situation that allowed conflicting interpretations to exist between businesses and consumers. The changes, which number about 200 in all, will takes effect within three years after they are promulgated to give the public ample time to be made aware of the changes.

The statutes of limitations for claiming accrued or belated payments for services rendered will be five years from the point when a claimant becomes aware of the right to such payments. Currently, the length varies depending on the industry, with the statute of limitations for claiming payments for dining set at one year, while that for claiming legal fees is set at two years.

To protect joint guarantors from being saddled with debt in connection with loans to small and midsize firms, the amended Civil Code requires the confirmation of the guarantors' willingness by a notary.

Well-established court precedents are also added to the law, including a rule requiring property owners, rather than tenants, to cover the cost of repairing properties that have degraded due to wear and tear.

Contracts for home renovations and goods purchases by people with dementia are also deemed invalid under the amended version of the law.