Can I still claim liquidated damages when the borrowed money expires?

Generally speaking, the two parties have a borrowing relationship because they borrow money, and once one party fails to repay the borrowed money within the time limit, it is a breach of contract, and the creditor can claim liquidated damages. However, whether the creditor can claim liquidated damages is not necessarily, because in practice, it depends on the agreement between the parties.

First of all, if you have agreed on liquidated damages in advance, you have the right to claim liquidated damages.

When the two parties establish a loan relationship, they agree to pay liquidated damages, and if one party fails to repay the borrowed money within the time limit, the other party can claim compensation for liquidated damages.

In addition, the calculation of liquidated damages is as follows:

1. Pay a certain amount of liquidated damages to the other party according to the breach of contract;

2. Calculate the amount of compensation for losses arising from breach of contract as agreed.

In addition, the upper limit of liquidated damages shall not exceed 30% of the actual loss, and if it is too high or too low, the court may be requested to reduce or increase it. Therefore, if it is found that the liquidated damages set earlier are too low, then the creditor can go to the court to request an increase.

If liquidated damages and overdue interest are agreed upon in advance, the creditor may claim both types of compensation at the same time, but the sum of the liquidated damages and overdue interest shall not exceed four times the bank's interest rate for the same period.

Second, if the liquidated damages have not been agreed in advance, the creditor cannot claim liquidated damages.

However, because the other party has borrowed money and has not repaid it overdue, the creditor can claim overdue interest.

Similarly, the calculation of overdue interest shall not exceed four times the bank's interest rate for the same period.

If the borrower fails to repay the money when due, whether the lender can claim liquidated damages under the contract can first see whether there is a clear agreement in the contract

1. If the borrower and the borrower clearly stipulate the liability for breach of contract in the loan contract, then the borrower's failure to repay the money when due is a breach of contract, that is, the borrower shall bear the corresponding liability for breach of contract in accordance with the contract. In addition, if the contract specifies the amount or calculation method of liquidated damages, then it can be calculated in accordance with the agreement.

2. If the borrower and the borrower do not make an agreement in the loan contract or do not sign the loan contract, they generally cannot claim liquidated damages. However, it is possible to claim compensation for actual losses, such as requiring the other party to pay overdue interest.

3. In the case of no contract liquidated damages, whether to pay the money can actually be negotiated by the borrower and the borrower. As long as an agreement is reached, then the contract can be performed as agreed. If the two parties fail to reach an agreement through negotiation, and the two parties have a dispute arising therefrom, they can collect relevant evidence and file a lawsuit with the court to claim compensation for losses.

Legal analysis: If the IOU is not repaid when it expires, including interest, the liquidated damages that can be charged shall not exceed 24% per annum, which is not illegal.

Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases Article 26 Where the interest rate agreed upon by the borrower and the borrower does not exceed the annual interest rate of 24, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it. If the interest rate agreed between the borrower and the borrower exceeds 36 per annum, the interest on the excess part shall be invalid.

Where the borrower requests that the lender return the interest paid in excess of 36 per annum, the people's court shall support it.

Legal analysis: The agreement on the amount of liquidated damages for the loan is the true intention of both parties, which is usually legal, but generally shall not exceed 30% of the loss caused by the default. Overdue interest shall be paid in accordance with the agreement or the relevant provisions of the state.

Overdue interest is liquidated damages. Liquidated damages can be agreed in the form of a specific amount determined in advance, and of course, they can also be in the form of overdue interest. Because there is no prohibition in national laws and regulations on the payment of liquidated damages in the form of a fixed amount, according to the principle of autonomy of will in civil law, this method is not legally restricted.

Legal basis: Article 508 of the Civil Code of the People's Republic of China Article 15 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 people's court or arbitration institution may increase them 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, at the request of the parties, appropriately reduce them.

If the borrowed money is not repaid when due, the lender may demand liquidated damages under the contract, and the parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach of contract, and may also agree on the method of calculating the amount of compensation for losses arising from the breach of contract.

1. How to resolve the dispute between the liquidated damages stipulated in the contract.

Settlement of disputes arising from the provisions on liquidated damages in the contract: the parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach of contract; It is also possible to stipulate the method of calculating the amount of compensation for the loss caused by the breach of contract.

2. How much is the liquidated damages for the rental contract?

There is no clear provision in the law for liquidated damages in the rental contract, and the parties can negotiate and agree on their own in accordance with transaction habits and market conditions. However, if the agreed amount of liquidated damages is too high or too low, the other party to the contract has the right to request the court to reduce or increase it.

3. The provisions of the Civil Code on liquidated damages for contracts.

The provisions of the Civil Code on liquidated damages in a contract are as follows: the parties may stipulate in the contract that one party 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 compensation for losses arising from the breach of contract. If the agreed liquidated damages are excessively higher or less than the actual losses, the court or arbitration institution may appropriately reduce or increase them according to the request of the parties.

Article 585 of the Civil Code.

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 compensation for losses and 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.

If the IOU is not repaid when it is due, the liquidated damages that can be charged shall not exceed 24% per annum, including interest, and it is not illegal.

1. What is the maximum interest rate for borrowing is not illegal.

The maximum interest rate for borrowing is 24%, which is not illegal. The interest rate of the loan is generally determined by agreement between the parties within the scope permitted by law. Where the interest rate agreed upon by the borrower and the borrower does not exceed 24% per annum, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it.

If the interest rate agreed between the borrower and the borrower exceeds 36% per annum, the interest agreement on the excess part shall be invalid. Where the borrower requests the lender to return the interest on the stool that has already been paid in excess of 36% of the annual interest rate, the people's court shall support it.

3. If the principal of the private loan has been repaid and the interest has not been paid, can I sue?

The interest on private loans is generally subject to the agreement between the parties. However, the agreed interest rate between natural persons shall not violate the provisions of the state on restricting the interest rate of borrowing, and the interest rate agreed upon by the borrower and the borrower does not exceed the annual interest rate of 24, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it; If the interest rate agreed between the borrower and the borrower exceeds 36% per annum, the interest agreement on the excess part shall be invalid. If the borrower requests the lender to return the interest paid in excess of 36 per annum, the People's Court shall support it.

Article 26 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases provides that if the interest rate agreed upon by the borrower and the borrower does not exceed the annual interest rate24, and the lender requests the borrower to pay interest at the agreed interest rate, the people's court shall support it. If the interest rate agreed between the borrower and the borrower exceeds 36 per annum, the interest agreement on the excess part shall be invalid. Where the borrower requests that the lender return the interest paid in excess of 36 per annum, the people's court shall support it.