Legal provisions on how to compensate for overdue liquidated damages for decoration

Renovation contract agreed that the liquidated damages for project delay shall generally be paid according to the project payment for more than ten days, and 0.5% of the total project payment shall be paid for each day of delay.

1. Generally, it shall be handled according to the contract. If one party breaches the contract, it may demand to bear the liability for breach of contract. If negotiation fails, it shall be settled through legal procedures.

2. Generally, when signing a contract, both parties will agree on the relevant terms of the contract and the liquidated damages after breach of contract. If one party breaches the contract, it shall pay liquidated damages.

If both parties to the contract have an agreement on liquidated damages, it shall be handled in accordance with the contract. The Civil Code stipulates that the parties may agree that one party 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 losses caused by 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.

If the breaching party refuses to perform the liability for breach of contract, the other party may directly bring a lawsuit to the court to force it to bear the responsibility. If the defaulting party does not have property to compensate for the losses or pay liquidated damages, and there is a guarantor or other responsible person, it may require other jointly and severally responsible persons to bear the responsibility and recover from the defaulting party afterwards.

legal ground

Article 577 of the Civil Code of People's Republic of China (PRC), if one party fails to perform the contractual obligations or the performance of the contractual obligations does not conform to the agreement, it shall bear the liabilities for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.