According to the relevant provisions of our country’s laws, legal conditions must be met for a contract to be effective. When signing a contract, both parties must sign it on a voluntary basis. If it is an unfair contract, it will have no legal effect. Some daily contracts contain overlord clauses. So is the contract with the overlord clause valid after it is signed? The following will introduce the relevant content to you.

1. Is the overlord clause valid in the contract?

To be precise, the overlord clause is not a legal concept, but an emotional expression that embodies extremely strong emotions. The corresponding concept in legal theory is "formal contract", which is a contract with pre-written terms for repeated use without negotiation between the two parties. Generally refers to standard contract clauses that exempt or limit its liability, increase the liability of the other party, and exclude the other party's main rights. Standard clauses are contract clauses that are drawn up in advance by the parties for repeated use and are not negotiated with the other party when making the contract. Standard clauses are formulated in advance by one party and accepted by an unspecified third party. They are complete and stereotyped. Although the counterparty did not participate in the formulation of the contract, it can only express general agreement or rejection of the content of the contract, but cannot modify or change the content of the contract.

2. The meaning of overlord clauses

Some scholars have given such a definition. The so-called overlord clauses mainly refer to the unilateral provisions made by some operators to evade legal obligations and reduce their own responsibilities. Unequal form of contract. In my opinion, overlord clauses refer to clauses stipulated by producers or operators in the standard contract that violate basic principles of civil law such as fairness and good faith and harm the counterparties of the standard contract.

The so-called "overlord clauses" are unequal format contracts, notices, statements, store notices or industry practices unilaterally formulated by some operators to evade legal obligations and reduce their own responsibilities, restricting consumer rights. Seriously infringe on the interests of the masses. The reason why "overlord clauses" are hated by consumers is that individual merchants take advantage of information asymmetry and imbalance of supply and demand to impose unequal consumption terms on consumers. Many times, because consumers face collective merchants on an individual basis, they are psychologically vulnerable and often have to admit that they are unlucky, spending money unjustly and feeling cowardly.

3. Whether the overbearing clause in the contract is legal

Whether the overlord clause in the contract is legal depends on whether it violates the specific provisions of the law;

If violated, it will be invalid. If Those that do not violate can be considered valid.

Overlord clauses mainly refer to unequal format contracts, notices, statements, store announcements or industry practices unilaterally formulated by some operators to evade legal obligations and reduce their own responsibilities. They exist in large quantities in the consumer field. , some public enterprises and operators with exclusive status according to law follow the regulations under the old system, or formulate practices based only on the industry's own interests, restricting consumer rights in many ways, and seriously infringing on the rights and interests of consumers.

The "overlord" in the "overlord clause" usually refers to the relevant departments with administrative power, or departments with natural monopoly and oligopoly tendencies.

The State Council shall formulate administrative regulations or the National People's Congress shall formulate special laws to clearly declare that various unfair format clauses are invalid or revocable.

Characteristics of overlord clauses

"Overlord clauses" often appear in format contracts, notices, statements, store notices, industry management, etc., and have five unique characteristics:

The first is to reduce liability and evade the obligations of operators.

The second is to violate legal provisions and arbitrarily expand the authority of operators.

The third is to exclude and deprive consumers of their rights.

Fourth is the unequal rights and obligations, which arbitrarily increases consumer responsibilities.

The fifth is to use vague terms to control the final interpretation.

The destructive nature of overlord clauses

A large number of notices, statements, notices, store notices, industry practices, etc. exist in the consumer field and fill our economic life. Public enterprises and operators with exclusive status according to law (such as banks, insurance, postal services, telecommunications, water and electricity, etc.) follow the regulations under the old system or formulate industry practices based only on their own interests, which restricts the interests of consumers in many ways and seriously infringes upon them. Consumer rights and interests have caused dissatisfaction among consumers. Overlord clauses flourish in these fields, but their destructive nature is well known. Consumers are "painful and unwilling to live" to it. It interferes and destroys the normal consumption order to a great extent, greatly damages the legitimate rights and interests of consumers, and even causes great obstacles and damage to the state's management activities in the field of consumption, making the law's protection of consumers In vain. Its destructive main manifestations are:

First, operators use overlord clauses to restrict or even deprive consumers of the exercise and acquisition of legitimate rights and interests.

Second, operators use the overlord clause to evade the strict consumption responsibilities imposed by the law on producers and operators. Therefore, based on the destructiveness of overlord clauses, some scholars assert that "since the 20th century, the widespread use of standard clauses (standard contracts) has threatened the justice of contracts and the security of transactions."

Based on what has been said above, overlord clauses are generally allowed in contracts. If they exceed the principles stipulated by law, then this kind of contract will not be protected by law. Therefore, when making a contract, both parties must You must see it clearly and do not allow your legitimate rights and interests to be harmed. Therefore, the overlord clause is invalid and unreasonable.

Legal basis:

"People's Republic of China and Civil Code"

Article 151: One party takes advantage of the other party's state of crisis, lack of If a civil legal act is obviously unfair when it is established due to circumstances such as the ability to judge, etc., the injured party has the right to request the people's court or arbitration institution to revoke it. Article 147 The validity of a civil legal act implemented based on a major misunderstanding is based on a major misunderstanding. For civil legal acts, the actor has the right to request the people's court or arbitration institution to cancel it. Article 148 The Effect of Civil Legal Acts Implemented by Fraudulent Means If one party uses fraudulent means to cause the other party to perform a civil legal act against its true intention, the party who has been defrauded has the right to request the people's court or arbitration institution to cancel it. . Article 151 The effect of a civil legal act that is obviously unfair. If one party takes advantage of the other party's distress, lack of judgment, etc., resulting in a civil legal act that is obviously unfair when established, the injured party has the right to request the People's Court or The arbitration institution shall be revoked. Article 152 The right to rescind shall be extinguished if any of the following circumstances occurs:

(1) The party has a major misunderstanding within one year from the date when the party knew or should have known the cause for revocation. Failure to exercise the right of revocation within ninety days from the date of knowing or should have known the reason for revocation;

(2) The party was coerced and failed to exercise the right of revocation within one year from the date of termination of the coercion;

(3) After the party knows the reason for revocation, he clearly expresses it or shows by his own behavior that he has given up the right to rescind.

If the party concerned fails to exercise the right of revocation within five years from the date of the civil legal act, the right of revocation shall be extinguished.