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Common invalid overlord clauses in lease contracts
Second overlord clause: If the sales contract cannot be signed or performed after signing due to the buyer's reasons, the seller will collect liquidated damages and pay 50% of the confiscated liquidated damages to the intermediary company as compensation for the expenses incurred by the intermediary company during the entrustment period (termination compensation).
Third Overlord Clause: If the entrusting party deals with the buyer introduced by the intermediary company within the entrustment period or within three months after the entrustment period ends, it shall pay the liquidated damages of 1% of the total entrustment price. The seller signed an intermediary agreement for house sales with intermediary A, and the buyer checked the house through intermediary A, but the seller signed a sales contract through intermediary B. Can intermediary A pay the liquidated damages as agreed?
Legal basis:
People's Republic of China (PRC) Civil Code
Article 704 The contents of a lease contract generally include terms such as the name, quantity, purpose, lease term, rent, payment term and method, and maintenance of the lease item.
Article 705 The lease term shall not exceed 20 years. More than twenty years, the excess part is invalid.
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