Legal analysis:
Conclusion: Liquidated damages It is determined in advance by the parties through agreement, and the liquidated damages not only make up for the losses of the non breaching party, but also have the punitive effect on the breaching party.
Liquidated damages are predetermined by the parties through agreement, and they can not only make up for the losses of the observant party, but also punish the defaulting party.
The liquidated damages shall be determined by both parties through negotiation. There is no limit on the amount, and they are generally determined according to the loss that may be caused by one party's breach of contract predicted by both parties.
After one party breaches the contract, the non breaching party requires the breaching party to bear Liability for breach of contract If the agreed liquidated damages are "lower" than the actual losses, the observant party can sue to the court for increasing the liquidated damages; If the agreed liquidated damages are "excessive" higher than the actual losses, the defaulting party can sue to the court for reducing the liquidated damages. The comparison standard of excessive liquidated damages is the actual loss of the observant party, which includes direct loss and loss of performance interest.
Legal basis:
《 Civil Code 》Article 585
The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, or they may agree on the calculation method of the amount of compensation for losses arising from the breach.
If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are too high than the losses caused, the people's court or arbitration institution may, at the request of the parties, appropriately reduce them.
Where the parties have agreed on liquidated damages for delay in performance, the breaching party shall, after paying the liquidated damages, perform debt 。 (The effective date of the Civil Code is January 1, 2021)
lawyer Tips:
Article 148 of the Civil Code
If one party fraudulently causes the other party to commit a civil legal act against its true intention, the fraudster has the right to request the people's court or an arbitration institution to revoke it.
Article 157 of the Civil Code
After a civil juristic act is invalid, revoked or determined not to be effective, the property acquired by the actor as a result of the act shall be returned; If it is impossible or unnecessary to return, it shall be compensated at a discount. The party at fault shall compensate the other party for the losses incurred therefrom; If all parties are at fault, they shall bear their respective responsibilities. If the law provides otherwise, such provisions shall prevail. How is the penalty agreed upon when signing the contract. If you have legal doubts, please consult online for free immediately. We will solve your legal doubts.
Relevant supplement 1:
How to stipulate the penalty for breach of contract
Conclusion: Contract liquidated damages The provision of "the penalty for breach of contract" is based on the loss caused by breach of contract, and cannot be too higher or too lower than the loss caused by breach of contract.
The provision of contract liquidated damages is that the liquidated damages shall be based on the losses caused by breach of contract, and shall not be too high or too low. The parties agree in the contract that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party in accordance with the circumstances of the breach, and may also agree on the calculation method of the amount of compensation for losses arising from the breach.
Relevant supplement 2:
How is the penalty agreed upon when signing the contract
Conclusion: Liquidated damages are predetermined by the parties through agreement, and they can not only make up for the losses of the observant party, but also punish the defaulting party.
Liquidated damages are predetermined by the parties through agreement, and they can not only make up for the losses of the observant party, but also punish the defaulting party.
The liquidated damages shall be determined by both parties through negotiation. There is no limit on the amount, and they are generally determined according to the loss that may be caused by one party's breach of contract predicted by both parties.
If the agreed liquidated damages are "lower" than the actual losses after one party breaches the contract and the non breaching party requires the breaching party to bear the liability for breach of contract, the non breaching party can sue to the court for increasing the liquidated damages; If the agreed liquidated damages are "excessive" higher than the actual losses, the defaulting party can sue to the court for reducing the liquidated damages. The comparison standard of excessive liquidated damages is the actual loss of the observant party, which includes direct loss and loss of performance interest.
2023-12-31 15:27:00 Reply
