Legal Definitions - override

The term override can function as both a noun and a verb in legal contexts, each with distinct meanings.

• As a noun, an override typically refers to a type of commission or payment:

  • Manager's Commission: An override can be a commission or bonus paid to a manager or supervisor based on the sales or performance achieved by the employees or team members they manage.

    • Example: A regional sales director for a technology company receives a 5% commission on all sales closed by the sales representatives working under them in their territory, in addition to their own base salary and personal sales commissions.

      Explanation: This 5% payment is an override because the director earns it based on the sales generated by their subordinate team members, not solely on their individual sales efforts.

  • Real Estate Broker's Commission: In real estate, an override refers to a commission a broker may still be entitled to receive even after their listing agreement with a property owner has expired. This applies if the owner sells the property directly to a buyer who was introduced to the property by that broker during the original listing period, provided the sale occurs within a specified timeframe after the listing ends.

    • Example: A real estate agent shows a luxury condominium to a potential buyer during the six-month period of their exclusive listing agreement. After the agreement expires, the homeowner decides not to renew it. Three weeks later, the same buyer contacts the homeowner directly and purchases the condominium. The original real estate agent may still be legally entitled to an override commission for their role in introducing the buyer to the property.

      Explanation: This is an override because the agent, despite the expired listing, facilitated the initial connection between the buyer and seller, and the sale occurred shortly thereafter with that same buyer, protecting the agent's prior efforts.

• As a verb, to override means to nullify, cancel, or set aside a decision, action, or rule, typically by exercising a superior authority or by achieving a sufficient majority vote.

  • Example 1: A state legislature passes a bill to fund a new public transportation project. The governor, believing the project is too costly, issues a veto. However, the legislature, with a two-thirds majority vote in both chambers, can then override the governor's veto, allowing the bill to become law despite the governor's objection.

    Explanation: Here, the legislature overrides the governor's veto by using its superior legislative power (a supermajority vote) to set aside the governor's decision.

  • Example 2: A federal appeals court reviews a judgment made by a lower district court in a complex corporate lawsuit. After careful consideration of the legal arguments and precedents, the appeals court determines that the district court made a significant error in applying the law and issues a new judgment that reverses the original decision.

    Explanation: The appeals court overrides the district court's ruling by using its higher judicial authority to nullify and replace the lower court's judgment with its own.