Decoration contract unfair terms highlights

The City Administration of Industry and Commerce Bureau of Contract Management jointly with Shenzhen University Law School conducted an in-depth investigation on decoration companies of different qualifications and found that most of the "decorated guerrillas" in Shenzhen had not signed a renovation contract with the consumers before the renovation was started. The signing was also extremely simple. There is a serious lack of specific provisions for the protection of consumer rights; even if it is a formal decoration company that has signed a detailed contract with consumers, the contract is also heavily pitted. During the interview, relevant legal experts analyzed and commented on some typical unfair terms in the decoration contract.
Overlord Clause One: "Party B (renovation company) has failed to comply with the environmental pollution caused by the decoration of the construction project, and Party B has the responsibility of governance."
Comments: If a decoration company causes environmental pollution during the construction process, it shall bear the no-fault liability, regardless of whether it violates the construction specification. In addition, the decoration company not only has the responsibility for governance, but also should be responsible for damages caused by damages.

Overlord Clause Two: "After completion of the project, Party A (consumer) shall use it without inspection, and shall be deemed to be qualified for acceptance by Party A."
Comments: This provision arbitrarily turns the consumer into using unqualified acceptance as the default, but does not consider the fault of both parties in a specific situation.

Overlord Clause 3: "Party A shall not arbitrarily cancel the contracted construction project. If the cancelled construction project cost exceeds 20% of the total contractual budget price, Party B shall obtain written consent from Party B, otherwise Party B shall pay 50% of the design fee. To compensate Party B for losses."
Comment: The starting point of this provision is to urge the parties to perform the contract. However, it is obviously unfair to stipulate the provisions for compensation fees for decoration companies.

Overlord Clause 4: “After project completion acceptance, Party B will submit project settlement and send relevant information to Party A. Party A has completed the review within 3 days after receiving the above information, and no objection has been filed within the time limit as deemed as agreed and settled within 3 days. And pay the balance."
Comment: This clause is the provision for the objection period, payment time, and quota of the project settlement. The objection period is limited to 3 days. It is unreasonable to consumers in some cases. When it is difficult for consumers to express their opinions within a specified period of just 3 days due to force majeure, there is no way to appeal for the various problems existing in the project.

Overlord Clause 5: "Because Party B violates relevant safety operation regulations and fire prevention regulations in the construction process, resulting in safety or fire accidents, Party B shall bear all economic losses caused thereby."
Comments: The terms appear to be reasonable and legal, but in fact violate the basic legal principles of the tort law. This clause stipulates that the decoration company only assumes responsibility in the event of a violation of the relevant regulations and fire regulations, which obviously narrows the scope of its responsibility.

Overlord Clause 6: "The warranty period belongs to the project purchased by Party A from Party B. If there is any quality problem caused by Party B's construction, Party B is responsible for the labor cost during the warranty period. Party A shall be responsible for the materials."
Comments: In the presence of construction quality problems, whether it is purchased by the consumer or the decoration company to purchase materials, the decoration company should assume warranty obligations.

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