According to the provisions of the Civil Code of People's Republic of China (PRC), the overlord clause refers to the clause that takes the interests of one party as the center and excludes or restricts the rights of the other party. Generally speaking, some unfavorable clauses are set in the contract to realize their own interests. The most common are some mandatory terms, such as unfair prices and unreasonable compensation for losses. In the civil code, the overlord clause is considered invalid and prohibited by law. If it exists, the whole contract will be invalid. At the same time, if the invalid clause plays a decisive role in the main contents of the contract, it may affect the legitimacy of the whole contract. In addition, the determination of overlord clause needs to be judged according to the actual situation. On the one hand, it needs to be judged by comprehensive factors such as the specific background of contract conclusion, the transaction status of both parties, the degree of information symmetry and whether there is monopoly. On the other hand, we should also consider whether the overlord clause has caused substantial damage to the other party's basic rights.
Under what circumstances can the terms in the contract be regarded as overlord terms? If the clauses in the contract focus on the interests of one party and exclude or restrict the rights of the other party, they may be regarded as overlord clauses. The specific situation needs to be judged according to the actual situation, and it should be analyzed in combination with the specific background of the conclusion of the contract, the transaction status and information symmetry of both parties, and whether there is monopoly.
According to the provisions of the Civil Code, the overlord clause refers to the clause that takes the interests of one party as the center and excludes or restricts the rights of the other party. If there is a overlord clause in the contract, it is invalid and may affect the legitimacy of the whole contract. Therefore, when signing a contract, we should pay attention to the provisions of People's Republic of China (PRC) Contract Law and other relevant laws and regulations to ensure the legality and effectiveness of the contract.
Legal basis:
Article 548 of the Civil Code of People's Republic of China (PRC) focuses on the interests of one party, and the clauses that exclude or restrict the rights of the other party are invalid.