Override in Various Contexts

Definition of Override

General Definition

Override refers to the act of surpassing or overruling an existing condition or authority. The specific meaning can vary significantly depending on the context in which it is used.

Specific Contexts

Business and Organizations: An override is a fee that is paid to a higher level in an organization or a fee given once a certain threshold (such as sales) is exceeded.
Petroleum Industry (Estate): In the context of oil and gas leases, an override (or overriding royalty interest) refers to a portion of production that is carved out of a working interest and is free of most operating costs.
Contract Law: To override in this context means to go beyond the stipulations of an agreement or ignore part of a contract, thus potentially leading to legal disputes.
Government and Legislation: An override in a government context usually refers to a legislative body casting enough votes to overturn a veto issued by the executive branch. This act often requires a supermajority.

Examples

Business: A sales manager might receive an override commission for every sale made by their team that exceeds the department’s sales quota.
Petroleum Industry: An oil company may assign a 5% overriding royalty interest to a stakeholder, meaning that the stakeholder gets 5% of the gross production revenue without being responsible for the operational costs.
Contract Law: A party might be accused of attempting to override a contractual non-compete clause by engaging in competitive activities during the restricted period.
Government: A state senate might pass an override of a governor’s veto of a bill, requiring a two-thirds majority vote.

Frequently Asked Questions

What is an override in sales?

An override in sales refers to a commission earned by sales managers or higher-level executives based on the sales performance of their teams. It’s generally above the regular commission and is compensatory for exceeding specific targets.

How does an overriding royalty interest work in the oil industry?

An overriding royalty interest (ORI) allows an interest owner to receive a portion of the production revenue from an oil or gas lease without bearing the associated operational costs. The interest is carved out of the lessee’s working interest.

How can a contract be overridden?

Contracts can be overridden if a party decides to ignore certain clauses. This transgression can lead to breaches that may render the contract void or result in legal proceedings.

What is required for a legislative override of a veto?

To override a veto in a legislative context, a supermajority is usually required. This often means a two-thirds vote in favor of the override within both legislative houses.

Commission

A fee paid to an employee, typically to a salesman, for performing a service like selling a product or acquiring a new client.

Working Interest

An interest in an oil or gas lease that represents the right to extract the resources and bear the operational costs involved.

Veto

A constitutional right to reject a decision or proposal made by a law-making body.

Supermajority

A number that is much more than half of a total, often used to describe the requirement for large majorities in voting processes.

Breach of Contract

An act of breaking the terms set out in a contract, which could lead to legal consequences.

Online References

Suggested Books for Further Studies

Business and Sales: “Sales Management: Analysis and Decision Making” by Thomas N. Ingram and Raymond W. LaForge
Petroleum Industry: “Petroleum Economics and Risk Analysis” by Mark Cook
Contract Law: “Contract Law: Principles and Cases” by Brian A. Blum and Amy C. Bushaw
Government and Legislation: “The Politics of Vetoes” by Mark W. Hebler

Fundamentals of Override: Business, Government, and Law Basics Quiz

### What is an 'override' in a sales context? - [ ] A penalty for underperformance - [x] A commission earned above a certain threshold - [ ] A bonus for all employees - [ ] A deduction from sales revenue > **Explanation:** An 'override' is a commission earned by sales managers or higher-level executives based on exceeding a sales target set for their teams. ### What does an overriding royalty interest entail in the oil industry? - [x] Receiving production revenue without bearing operational costs - [ ] Direct participation in the management of the lease - [ ] Responsibility for all operational costs - [ ] Ownership of physical equipment > **Explanation:** An overriding royalty interest refers to the interest owner's right to a portion of production revenue without bearing operational costs, as this interest is carved out of the lessee's working interest. ### What must be achieved for a legislative body to override a veto? - [ ] A simple majority - [x] A supermajority - [ ] Unanimous consent - [ ] A plurality > **Explanation:** A legislative body typically requires a supermajority, often two-thirds, to override a veto, demonstrating significant consensus contrary to the executive's decision. ### In contract law, what does it mean to 'override' a contract? - [ ] To fully comply with all clauses - [x] To go beyond the agreement or ignore parts of the contract - [ ] To renew the contract - [ ] To discuss revisions publicly > **Explanation:** To 'override' a contract means to ignore certain clauses or go beyond the stipulated terms, often leading to a breach. ### How are overrides generally used in organizational structures? - [ ] As penalties for non-compliance - [ ] As standard salaries for executives - [x] As incentives for exceeding specific performance targets - [ ] As routine bonuses for onboarding > **Explanation:** Overrides are typically used as incentives for higher-level managers and executives when their teams exceed specific performance targets. ### Can an overriding royalty interest affect operational expenses? - [ ] Yes, it increases operational expenses - [ ] Yes, it jointly shares operational expenses - [x] No, it does not affect operational expenses - [ ] No, it eliminates operational expenses > **Explanation:** An overriding royalty interest does not affect operational expenses since the interest owner receives a portion of the production revenue free from most operational costs. ### What is the primary result of a veto override in government? - [ ] The law is disregarded - [x] The vetoed law is enacted - [ ] A new bill is drafted - [ ] The executive resigns > **Explanation:** The primary result of a veto override is that the law, despite the executive's veto, is enacted following a supermajority vote in the legislative body. ### What kind of vote is generally required for a legislative veto override? - [x] A supermajority vote - [ ] A simple majority vote - [ ] A two-person committee vote - [ ] A unanimous decision > **Explanation:** A supermajority vote, often two-thirds of the voting members, is generally required for a legislative veto override. ### Has an override in contract law any legal consequences? - [x] Yes, it can lead to a breach of contract claims - [ ] No, overrides are informal agreements - [ ] Only if expressly stipulated in the contract - [ ] Only in the presence of explicit malice > **Explanation:** Yes, overriding a contract can have legal consequences such as breach of contract claims, leading to potential legal proceedings. ### What is often required to earn an override commission in a business? - [ ] Meeting the minimum wage requirements - [x] Exceeding specific performance targets - [ ] Regular attendance - [ ] Seniority in the company > **Explanation:** An override commission is generally earned by exceeding specific performance targets set for teams or individuals.

Thank you for exploring the diverse meanings of the term ‘override.’ Enhance your understanding by reviewing suggested resources and taking our quiz to gauge your grasp on the subject matter.