On the issue of liquidated damages, compensation for liquidated damages Legal issues

Updated on society 2024-03-27
6 answers
  1. Anonymous users2024-02-07

    First of all, the default is certain. Now it is a matter of how much actual loss this breach has caused to the other party. Paragraph 2 of Article 114 of the Contract Law provides:

    If the agreed liquidated damages are excessively higher than the actual losses, the parties may request the people's court or arbitration institution to appropriately reduce them. Therefore, you have to prove that the liquidated damages of 30,000 yuan are much higher than the actual loss of the other party.

  2. Anonymous users2024-02-06

    Legal analysis: Generally speaking, the upper limit of liquidated damages in a contract is not more than 30% of the actual loss. However, if it is too high or too low, the court can be requested to grant a decrease or increase.

    Liquidated damages are a kind of pre-estimate of the losses that may be caused by one party after the breach of contract by both parties at the time of contracting, and it is impossible to be completely consistent with the actual losses of the non-breaching party after the breach of contract, so it can be left to the discretion of the judge.

    Legal basis: Civil Code of the People's Republic of China Article 582 If the quality does not conform to the agreement, the liability for breach of contract shall be borne in accordance with the agreement of the parties.

  3. Anonymous users2024-02-05

    Legal analysis: The parties to a transaction often agree on two clauses at the same time: payment of liquidated damages and compensation for losses. Legally, however, the two do not necessarily apply at the same time.

    The payment of liquidated damages and compensation for losses are the main forms of liability for breach of contract. Liquidated damages have the dual attributes of compensation and punishment, while compensation for losses is mainly a form of liability of a compensatory nature. (1) If the two can be applied at the same time The agreed liquidated damages are less than the actual economic losses, and the non-breaching party may require the breaching party to compensate for the insufficient part of the losses while paying the liquidated damages.

    However, the sum of the two shall not exceed the economic loss caused by the breaching party. For example, A and B sign a Sales and Purchase Contract, stipulating that liquidated damages will be 10,000 yuan and compensation for all economic losses. After the contract is signed, A transfers the subject matter to C.

    A's breach of contract caused an economic loss of $70,000 to B. In this case, B can not only require A to pay 10,000 yuan in liquidated damages, but also require A to compensate God for the loss of 60,000 yuan. (2) Circumstances where the two cannot be applied at the same time The agreed liquidated damages are greater than or equal to the actual economic losses, and the non-breaching party cannot require the breaching party to compensate for the losses while paying the liquidated damages.

    Let's take the transaction of A and B as an example. Assuming that the liquidated damages agreed in the contract are 90,000 yuan, and A's breach of contract causes a loss of 70,000 yuan to B, B can only require A to pay 90,000 yuan in liquidated damages but cannot also claim compensation of 70,000 yuan. Therefore, in the transaction, the liquidated damages should not be too low, and should be appropriately higher than the economic losses that may arise from the default of one party, but should not be too high, and the liquidated damages exceeding 30% of the actual losses are too high.

    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 fails to perform 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:Where 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 that it bear 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, interest, or fails to perform other monetary obligations, the other party may request payment.

    Article 584:Where one of the parties fails to perform its contractual obligations or performs its contractual obligations in an inconsistent manner with the agreement, causing losses to the other party, the amount of compensation for the losses 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; provided, however, that it shall not exceed the losses that may be caused by the breach of contract that the breaching party foresaw or should have foreseen at the time of entering into the contract.

  4. Anonymous users2024-02-04

    I don't think you need to pay the so-called compensation, because the Labor Contract Law stipulates the circumstances under which liquidated damages need to be paid, and if you are not in these two cases, you do not need to pay it.

    Article 25 Except as provided for in Articles 22 and 23 of this Law, an employer shall not agree with a worker that the worker shall bear liquidated damages.

    Article 22 Where an employer provides a worker with special training expenses and provides him with professional and technical training, it may enter into an agreement with the worker to stipulate the period of service. If the employee violates the service period agreement, he shall pay liquidated damages to the employer in accordance with the agreement. The amount of liquidated damages shall not exceed the training fees provided by the employer.

    The liquidated damages required by the employer shall not exceed the training expenses that should be apportioned for the unfulfilled part of the service period. If the employer and the employee agree on the service period, it will not affect the increase of the employee's labor remuneration during the service period in accordance with the normal wage adjustment mechanism. Article 23 The employer and the employee may agree in the labor contract to keep the employer's trade secrets and confidential matters related to intellectual property rights.

    For employees who are obliged to maintain confidentiality, the employer may stipulate a non-compete clause with the employee in the employment contract or confidentiality agreement, and stipulate that after the termination or termination of the labor contract, the employee will be compensated monthly during the non-compete period. If the employee violates the non-compete agreement, he shall pay liquidated damages to the employer in accordance with the agreement. Article 24 The persons subject to non-competition restrictions are limited to the senior management personnel, senior technical personnel and other personnel who have the obligation of confidentiality of the employer.

    The scope, region, and duration of the non-compete restriction shall be agreed upon by the employer and the employee, and the agreement on the non-compete restriction shall not violate the provisions of laws and regulations. After the dissolution or termination of the labor contract, the period of non-competition for the personnel provided for in the preceding paragraph to go to another employer that has a competitive relationship with the unit that produces or sells the same kind of products or engages in the same kind of business, or starts their own business to produce or operate the same kind of products or engage in the same kind of business, shall not exceed two years.

  5. Anonymous users2024-02-03

    You can apply for labor arbitration directly at the local labor arbitration commission.

  6. Anonymous users2024-02-02

    Generally speaking, there are only a few cases of liquidated damages, the first is that there is a training-related agreement, which is very common, and there is also that you have done something sorry for the company, causing the company to suffer. Generally speaking, there is no requirement for employees to do a good job for a long time, if your contract has not expired, you have to leave, submit it a month in advance, and go through the relevant procedures after leaving, there will be no compensation. Salary insurance costs are what you deserve, if none of the above situations, it can be roughly determined that your company's personnel is messy, but you must also leave according to the company's requirements, if the company deducts your money, first talk to personnel, tell him these things, if he is still like this, he has to go to arbitration, the company is in the arbitration, the labor contract is bringing, it is a long-term process, and it will take several months.

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