Legal provisions on liquidated damages in property contracts

The legal provisions of liquidated damages for property contracts will be different according to the specific circumstances. Let's make a concrete analysis: The legal basis for signing liquidated damages for property contracts is the provisions of Article 584 of the Civil Code. If one party fails to perform its contractual obligations or does not conform to the agreement during the performance, causing certain losses to the other party, then it needs to pay a certain penalty.

1, the legal provisions of liquidated damages in the property contract are that both parties can freely negotiate to determine the property fees and the terms of liquidated damages. Whether the property fee is charged as liquidated damages can be decided by both parties themselves whether it needs to be written into the contract. The liquidated damages shall be determined by both parties through consultation, and the amount is not limited. Liquidated damages are generally determined according to the expected losses caused by one party's breach of contract.

2. If the liquidated damages agreed by one party after breach of contract are "lower" than the actual losses, and the observant party requires the defaulting party to bear the liability for breach of contract, the observant party may bring a lawsuit to the court to request an increase in liquidated damages; If the agreed liquidated damages are "excessively" higher than the actual losses, the defaulting party may bring a lawsuit to the court to reduce the liquidated damages.

1. What is the upper limit of late payment for technical contracts?

There is no provision for late payment in the technical contract, so there is no corresponding upper limit. Generally, liquidated damages will be stipulated in the technical contract, with a specific upper limit.

(1) The liquidated damages shall be determined by both parties through negotiation, and the amount is not limited, generally determined according to the losses that may be caused by one party's default predicted by both parties.

(2) If one party breaches the contract, the agreed liquidated damages are "lower" than the actual losses, and the observant party requires the defaulting party to bear the liability for breach of contract, the observant party may bring a lawsuit to the court to request an increase in liquidated damages; If the agreed liquidated damages are "excessively" higher than the actual losses, the defaulting party may bring a lawsuit to the court to reduce the liquidated damages.

(3) "No more than 20%" means no more than 20% of the subject matter of the main contract, but this can only be applied to the deposit agreement, and the court will not support the part where the agreed deposit is higher than 20% of the subject matter of the main contract.

2. What is the upper limit of liquidated damages for construction projects?

The liquidated damages are determined in advance by the parties through agreement, which 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 consultation, and the amount is not limited. Liquidated damages are generally determined according to the expected losses caused by one party's breach of contract.

If the agreed liquidated damages are lower than the actual losses after one party breaches the contract, the observant party may bring a lawsuit to the court to request an increase in liquidated damages; If the agreed liquidated damages are "excessively" higher than the actual losses, the defaulting party may bring a lawsuit to the court to reduce the liquidated damages. The comparison standard of excess liquidated damages is the actual loss of the observant party, including direct loss and loss of performance interests.

Legal basis:

Article 584 of the General Principles of Civil Law of People's Republic of China (PRC) stipulates that if one party fails to perform its contractual obligations or fails to perform its contractual obligations as agreed, thus causing losses to the other party, the amount of compensation for the losses shall be equivalent to the losses caused by the breach of contract, including the benefits that can be obtained after the performance of the contract, but shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.