A liquid crystal device of the present invention performs transmissive display using light from an illumination devices 111 and 112 in a dark environment, and reflective display using light reflected by a transflective layer 123 provided on the inner side of a liquid crystal cell in a bright environment. A retardation plate is provided adjacent to a polarizer 109 and an illumination device so that the rotational direction of polarization of the light emitted from the illumination device is the same as that of the polarization of the light reflected by the transflective layer in a dark display state.