The provisions on liquidated damages are invalid:
 1. The contract containing the liquidated damages clause is invalid, canceled, not ratified or not established, and the agreement on liquidated damages is also invalid;
 2. When a breach of contract occurs, the type of breach should be determined by the agreement of the parties or the direct provisions of the law;
 3. In principle, the breaching party is required to be at fault, either intentionally or negligently.
 4. In the case that the liquidated damages are the expected amount of compensation for losses, the parties agree that the liquidated damages and compensation for losses coexist, so that the observant party can obtain "unjust enrichment", and the agreement on liquidated damages can be deemed invalid;
 5. In the case of statutory liquidated damages, if the liquidated damages agreed by the parties violate the law, they are generally partially invalid.
 [Legal Basis]
 Article 155 of the Civil Code states that an invalid or revoked civil legal act is not legally binding from the beginning.
 (The effective date of the Civil Code is January 1, 2021)