In the recent development of social welfare policy, the idea of"contracts"has come in sight, which, from now on, will probably be acknowledged as a principle concept in this field. The author is here to discuss the role or the capacity of mental faculty required so as to establish"contracts", viewing mainly from the point of securing QOL for aged people. This paper is organized based on"life history analysis", as a means of study, referring to a set of lawsuit cases.