What are liquidated damages? What does liquidated damages mean?

Liquidated damages: According to Article 34 of the Telecommunications Regulations of the People's Republic of China, telecommunications operators may suspend the provision of telecommunications services to telecommunications users who fail to pay telecommunications fees within 30 days beyond the agreed time limit for charging. Where telecommunications users fail to pay telecommunications fees and liquidated damages within 60 days of the telecommunications operator's suspension of services, the telecommunications operator may terminate the provision of services and may recover the arrears and liquidated damages in accordance with law.

Note: Postpaid users pay the fee on a monthly basis, and the payment period from the 2nd of each month to the 1st of the next month is the payment period for the payment of the previous month's fee, and if the customer fails to pay the telecommunication fee within the time limit, China Telecom has the right to request the payment of the telecommunication fee, and can charge a penalty of 3 per day according to the outstanding fee. To learn more about service offers, click on the "****" customer service 220 below to answer for you.

How should liquidated damages be calculated?

Legal analysis: liquidated damages refer to the money that should be paid to the other party if one party breaches the contract according to the agreement of the parties or the direct limitation of the law.

Legal basis: Civil Code of the People's Republic of China

Article 577:Where one of the parties fails to perform its contractual obligations or its performance does not conform to the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.

Article 578:Where one of the parties clearly states or shows by its own conduct that it will not perform its obligations under the contract, the other party may request it to bear the liability for breach of contract before the expiration of the performance period.

Article 579:Where one of the parties fails to pay the price, remuneration, rent, or interest, or fails to perform other monetary debts, the other party may request payment from the other party.

Liquidated damages refer to the agreement between the parties that when one party breaches the contract, it shall pay a certain amount of damages for breach of contract to the other party according to the circumstances of the breach. In addition, the liquidated damages are generally based on the loss caused by 30 yuan, and if it is too high or too low, the parties may request appropriate adjustments.

[Legal basis].

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

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 when it violates the first contract, and may also agree on the method of calculating the amount of compensation for losses arising from the breach of contract.

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 party to the liquid; 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.

Article 12 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Commercial Housing Sales Contracts.

If the parties request a reduction on the grounds that the agreed liquidated damages are too high, the liquidated damages shall be appropriately reduced on the basis that the liquidated damages exceed 30 of the losses caused; Where a party requests an increase on the grounds that the agreed liquidated damages are lower than the losses caused, the amount of liquidated damages shall be determined on the basis of the losses caused by the breach of contract.

The concept and classification of liquidated damages are a certain amount of money paid by the breaching party to the other party when one party does not perform the contract or does not fully perform the contract. According to the type of contract and the form of breach of contract, the size of the liability for breach of contract should also be appropriate, and the administrative regulations supporting the Contract Law should make clear provisions on this. Breach of the contract is both compensatory and punitive.

There are two types of liquidated damages: statutory and conventional.

1. Statutory liquidated damages. It refers to the liquidated damages that the parties shall bear as stipulated in the law (refers to the liquidated damages that should be borne by the breaching party after negotiation between the two parties within the scope of the law when entering into the contract).

2. Agree on liquidated damages. It refers to the agreement between the two parties on the application and specific proportion of liquidated damages (the method of agreement should be reasonably determined with reference to similar provisions of relevant laws and regulations, and can generally be divided into two types: determining a certain amount and a certain range of flexibility). Whether or not to use the remedy of liquidated damages must be expressly agreed upon by the parties to the contract in advance, otherwise, one of the parties has no right to require the breaching party to pay liquidated damages.

At the same time, it is also stipulated that liquidated damages are regarded as compensation for losses in breach of contract and are a compensatory economic sanction. After the breaching party pays the liquidated damages, the other party shall not claim compensation for losses (compensation is subject to evidence, and liquidated damages do not need to be proved).

[Legal basis].

According to Article 585 of the Civil Code of China, the agreement between the parties on liquidated damages may stipulate that when one party breaches the contract, a certain amount of liquidated damages shall be paid to the other party according to the specific circumstances of the breach.

If the amount of liquidated damages agreed by both parties is lower than the amount of losses caused, one of the parties (the non-breaching party) may request the people's court or arbitration institution to increase it; If the agreed amount of liquidated damages is much higher than the amount of losses caused, the parties may also request the people's court or arbitration institution to appropriately reduce them.

Agreed liquidated damages are a concept as opposed to statutory liquidated damages, which are specific rules for liquidated damages stipulated by national laws, rather than liquidated damages as agreed by the parties.

Liquidated damages refer to a certain amount of money paid by the breaching party to the non-breaching party in accordance with the contract in accordance with the contract for non-performance or incomplete performance of contractual obligations. Liquidated damages are a kind of guarantee for debts, and they are also a kind of economic sanctions for default. Liquidated damages are established to ensure the performance of the debt, and even if the other party has not suffered any property loss, liquidated damages must be paid in accordance with the provisions of the law or the contract.

The standard of liquidated damages shall be prescribed by law or agreed in writing by both parties in the contract. Liquidated damages have the following characteristics: (1) Liquidated damages are agreed upon by the parties to the contract.

According to the principle of freedom of contract established in China's Civil Code, liquidated damages shall be determined through negotiation according to the wishes of the parties to the contract. 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. (2) The amount of liquidated damages shall be determined in advance by the parties to the contract.

Liquidated damages, as a form of liability for the breaching party after a breach of contract, must be determined at the time of signing the contract or before the performance of the contractual obligations. When the breaching party fails to perform or does not fully perform the contract, the non-breaching party may be compensated in accordance with the agreement of both parties to the contract for liquidated damages. (3) Whether the liquidated damages clause applies depends on whether the parties to the contract are in breach of contract.

When one of the parties to the contract breaches the contract, the liquidated damages clause can be used appropriately. If there is no breach of contract by the parties to the contract, the liquidated damages clause does not apply. In addition, the application of liquidated damages clauses must also comply with the statutory conditions for validity.

If the main contract is invalid, revoked or invalid, the liquidated damages clause cannot be validated. Liquidated damages can be divided into two types: punitive liquidated damages and compensatory liquidated damages. Among them, punitive liquidated damages refer to the fact that if the other party suffers property losses due to the breach of contract, the breaching party shall compensate the other party for the losses in addition to paying the liquidated damages.

Compensatory liquidated damages are a pre-estimate of the property losses that one party to the contract may suffer due to the other party's breach of contract, and the payment of liquidated damages 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. The nature of liquidated damages in China's Civil Code is mainly compensatory and punitive to a limited extent. In addition, there are statutory liquidated damages and agreed liquidated damages.

Statutory liquidated damages are liquidated damages directly stipulated by law. Liquidated damages are liquidated damages agreed upon by the parties. Agreeing on liquidated damages is a contractual relationship called a liquidated damages contract.

Such a contract is a subordinate contract. The main contract is invalid, and the liquidated damages contract is invalid. Article 585 of the Civil Code6868 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 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.