What should I do if Party A wants to pay liquidated damages and terminate the contract?

Updated on society 2024-03-11
6 answers
  1. Anonymous users2024-02-06

    According to Article 114 of the Contract Law, "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, and may also agree on the calculation method of the compensation for losses arising from the breach." 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 appropriately reduce them. If the parties agree on liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages", you determine the liquidated damages as 100,000 yuan in the contract, which has no legal effect, and the amount of liquidated damages should be equal to the losses caused.

    In addition, the modification or termination of the contract must be agreed upon by both parties. It is illegal to unilaterally terminate or modify the contract without authorization. In addition to compensating for the damages, the breaching party must continue to perform the contract until the termination date agreed in the contract.

    If one party is willing to pay liquidated damages, but the other party does not agree to terminate the contract, the contract is still valid.

  2. Anonymous users2024-02-05

    Hurry up and build on the ground, find a qualified accountant to exaggerate the construction cost, make him pay a lot of expenses, or do other things, just to make him retreat--- right, it's just an opinion.

  3. Anonymous users2024-02-04

    You may not be able to terminate the contract after paying a penalty penalty. The types of liability for breach of contract include continued performance, taking remedial measures, or compensating for losses. The payment of liquidated damages is only one of the types of liability for breach of contract, and it does not preclude the assumption of other liability for breach of contract.

    If the contract needs to be continued, the breaching party shall continue to perform the contract.

    What are the ways to pay liquidated damages?

    There are two ways to pay liquidated damages, each of which is different.

    1. Punitive liquidated damages, the function of which is all punishment, if the other party suffers property losses due to breach of contract, the breaching party shall compensate the other party for losses in addition to paying liquidated damages;

    2. Compensatory liquidated damages are a pre-estimate of the property losses that one party to the contract may suffer due to the breach of contract by the other party, and the payment of the breach of contract or contract fee exempts the breaching party from the liability to compensate the other party for the property losses suffered; Even if the loss is greater than the liquidated damages, no compensation will be made. Rubber.

    [Legal basis].Article 577 of the Civil Code of the People's Republic of China.

    Where one of the parties fails to perform its contractual obligations or performs its contractual obligations in accordance with the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.

    Article 578.

    If one of the parties expressly states or shows by its own conduct that it will not perform its contractual obligations, the other party may request it to bear the liability for breach of contract before the expiration of the performance period.

  4. Anonymous users2024-02-03

    Summary. Hello, the termination of the contract does not necessarily require liquidated damages, and whether you can get liquidated damages depends on whether the other party is in breach of contract. If the contract is terminated due to force majeure or is legally invalid, there is no question of liquidated damages.

    If it is the fault of the other party and the contract is terminated in breach of contract, you can claim liquidated damages.

    If Party B breaches the contract and Party A withdraws the contract, does Party B still need to pay liquidated damages?

    Hello, the failure to terminate the contract does not necessarily require a breach of contract to close the key fee, whether you can get the liquidated damages depends on whether the other party is in breach of contract. If the contract is terminated or legally invalid due to force majeure, there is no question of liquidated damages. If it is the fault of the other party and the contract is terminated in breach of contract, you can claim liquidated damages.

    Legal basis: Article 566 of the Civil Code provides that after the contract is terminated, if it has not been performed, the performance shall be terminated; If it has been performed, according to the performance and the nature of the contract, the parties may request restitution or other remedial measures, and have the right to ask for compensation for losses. If the contract is terminated due to breach of contract, the person with the right to terminate may request the breaching party to bear the liability for breach of contract as soon as possible, unless otherwise agreed by the parties.

    After the termination of the main contract, the guarantor shall still bear the guarantee liability for the civil liability to the debtor, unless otherwise agreed in the guarantee contract.

    Dear, you need to pay. In the event that a breach of contract by one party results in the termination of the contract, the other party should be allowed to demand that the defaulting party pay the default penalty, because the main function of liquidated damages is to sanction the breach of contract to guarantee the performance of the debt, and the termination of the contract arises because of the breach of contract by the first party, and such wrongdoing should be sanctioned by collecting liquidated damages.

  5. Anonymous users2024-02-02

    Although the termination of the contract is also based on the legal consequences arising from the fact of breach of contract, it is different from the payment of liquidated damages, and does not belong to the form of liability for breach of contract, but only a remedy after the breach of contract.

    There are two types of contract termination: negotiated termination and unilateral termination. Among them, there must be a premise for unilateral termination, that is, the party requesting the termination of the contract must have an agreed or statutory right of termination. Among them, if the contract cannot be realized due to reasons not attributable to both parties, both parties have the right to terminate the contract.

    1. Is it possible to request the termination of the contract and the payment of liquidated damages?

    1. China implements compensatory liquidated damages, which are determined in advance of the losses caused by the breach of contract. Theoretically, there are two types of liquidated damages: compensatory and punitive, and compensatory liquidated damages are to compensate for the losses caused by the breach of contract, and the termination of the contract and the payment of liquidated damages cannot be applied at the same time. Punitive liquidated damages are punishments for the breaching party's breach of contract, and are not based on whether the loss exists. The parties may agree on a certain amount of liquidated damages or the method of calculating the liquidated damages in the contract, but if the agreed liquidated damages are lower than the losses caused, one party may request the people's court or arbitration institution to increase them; If the agreed liquidated damages are too high and cause losses, the parties may request the people's court or arbitration institution to appropriately reduce them.

    It shows that although the parties' right to dispose of liquidated damages should be respected, it is not excessive, but cannot be "excessive" or "lower", that is, the liquidated damages are only predetermined by the parties for the losses that may be caused by the breach of contract, and what China implements is compensatory liquidated damages, not punitive liquidated damages.

    2. In order to obtain all compensatory liquidated damages, it must be premised on the continued performance of the contract. Compensatory liquidated damages include direct losses and loss of available benefits caused by the breach of contract, which can only arise after the completion of the performance of the contract.

    3. Termination of the contract is not a way to bear the liability for breach of contract, after the termination of the contract, if the performance has not been performed, the performance shall be terminated, and if the contract has been performed, the parties may request restoration of the original state, take other remedial measures, and have the right to claim compensation for losses. It shows that the legal consequence of rescission is a civil liability that includes the return of unjust enrichment and compensation for losses, and that losses only refer to direct losses and do not include loss of available benefits. That is, the legal consequences of terminating the contract do not include the liability for breach of contract, including the payment of liquidated damages.

  6. Anonymous users2024-02-01

    It is not necessary that the contract will be terminated after the liquidated damages are paid. According to the relevant laws and regulations, 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, and may also agree on the method of calculating the amount of compensation for losses arising from the breach.

    Article 585 of the Civil Code of the People's Republic of China.

    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, and may also agree on the method of calculating 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; Where 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 agree on liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.

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