How reasonable is the property penalty?

Legally, there is no specific proportion and amount of liquidated damages signed between the property contract and the owner. However, the liquidated damages generally do not exceed 30% of the actual losses. Too high or too low needs to be determined according to the amount of losses suffered by the observant party.

1. What is the liquidated damages signed by the property contract and the owner?

Generally speaking, the upper limit of contract penalty is not more than 30% of the actual loss, but if it is too high or too low, the court can be asked to reduce or increase it.

If the agreed liquidated damages are lower than the losses caused, the parties may request the court to increase them; If the agreed liquidated damages are excessively higher than the losses caused, the parties may request the court to reduce them appropriately. However, liquidated damages are an estimate of the possible losses caused by one party's breach of contract when signing the contract, which is not completely consistent with the actual losses of the observant party after breach of contract; Therefore, it can be decided by the judge. The law stipulates that liquidated damages not only exert psychological pressure on the parties, but also avoid the trouble of calculating the loss and proving the size of the loss after breach of contract, so that the parties can quickly determine their specific responsibilities.

Second, what should I do if the contract penalty is too high?

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 situation of breach of contract, and may also agree on the calculation method of the amount of compensation for breach of contract.

If the agreed liquidated damages are lower than the losses caused, the parties may request the people's court or arbitration institution to increase them; If the agreed liquidated damages are excessively higher than the losses caused, the parties may request the people's court or arbitration institution to reduce them appropriately.

If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.

According to this regulation, the maximum amount of liquidated damages shall not exceed the actual loss of the other party.

Three, what is the legal provisions of the contract penalty?

civil law

Article 582

If the performance is not in conformity with the agreement, it shall bear the liability for breach of contract in accordance with the agreement of the parties. If the liability for breach of contract is not stipulated or clearly stipulated and cannot be determined according to the provisions of Article 510 of this Law, the injured party may reasonably choose to require the other party to bear the liability for breach of contract such as repair, rework, replacement, return, price reduction or remuneration according to the nature of the subject matter and the size of the loss.

Article 583 Where one party fails to perform its contractual obligations or fails to comply with the contract, and after performing its obligations or taking remedial measures, the other party still suffers other losses, it shall compensate for the losses.

Article 584

If one party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the agreement, thus causing losses to the other party, the amount of damages 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; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.

Article 585 The parties may agree that one party shall pay a certain amount of liquidated damages to the other party for breach of contract, or may agree on the calculation method of the amount of compensation for losses caused by breach of contract.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.

In short, when signing a contract, the related matters of liquidated damages are generally agreed. The amount of liquidated damages is mainly related to the actual loss of the observant party. Therefore, if the agreed liquidated damages are lower than or higher than the losses caused, both parties can increase or decrease them through the people's court.