Do liquidated damages and late fees in the contract mean the same thing?

are two different concepts.

Liquidated damages are a certain amount of money that is agreed in advance by the parties to the contract when one party fails to perform the contract or does not fully perform the contract, and the breaching party pays the other party.

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.

Liquidated damages are both compensatory and punitive.

Late payment penalty is a kind of punitive money levied on the payer after the prescribed payment period, generally a certain percentage of the payable amount is levied every day according to the number of days beyond the specified period.

The meaning of late payment penalty is that if the loan is due to be repaid or paid on time and is not paid or repaid on time, a certain penalty fee will be charged in accordance with the relevant regulations, such as the loan is due and not repaid on time, the bank will charge a penalty interest of 20% on the basis of the specified interest; If the tax that should be paid on the 10th is not paid on time, the tax department will charge a late fee of 5/10,000 of the tax payable every day in accordance with the regulations; For example, the **fee, the current **fee should be paid before the end of the next period, that is to say, the **fee for March should be paid before April 30 at the latest, if it is not paid before April 30, then the telecommunications department will charge a late fee from May 1 according to 3% of the **fee you should pay in March (the standard is different in various places).

Not a meaning.

Liquidated damages are generally used in contracts, which refer to the failure of one of the parties to the contract to perform the obligations stipulated in the contract or to repentance of the matters agreed in the contract, and pay the party who suffered losses in accordance with the contract. Liquidated damages are generally agreed in the contract and have a fixed amount.

Late payment fees are generally used in administrative penalties and are derived from other administrative payments or administrative penalties.

The essence, content, and form of the two are different!

The late payment penalty agreed in the contract is a type of liquidated damages, which are the money agreed in the contract to be paid to the non-breaching party if one party to the contract violates the contract.

There are many ways to breach the contract, such as delay in payment of goods, delay in delivery of goods, and failure to comply with the contract in the delivery of goods.

Late fees in a contract are actually liquidated damages paid to the other party for the failure of the party who is due to pay the currency on time.

Late fees in contracts and administrative contributions, such as taxes, are not of the same nature and should not be confused.

**Late payment penalty for unpaid fees and electricity bills is also a kind of liquidated damages, because we have a contractual relationship with telecom and power companies.

The concept in the administrative law of late payment of metal is a punitive measure taken by the state administrative department against the administrative counterpart in accordance with the law because the administrative counterpart violates the payment obligations stipulated by the law, such as taxes and fees, etc., which is mandatory by the state and occurs between unequal subjects of administrative relations; The concept in the civil legal system of liquidated metal is the obligation to pay compensatory money to the other party due to the breach of the contract, which occurs between equal subjects of civil relations. Compensation for damages. China's "General Principles of Civil Law" stipulates:

The liability of one of the parties for breach of contract shall be equal to the loss suffered by the other party as a result. The parties may stipulate in the contract that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party; It is also possible to stipulate in the contract the method of calculating the amount of damages arising from the breach of the contract. It can be seen from this that liquidated damages are compensation for the losses caused to the other party, and the amount of liquidated damages is equivalent to the losses suffered by the other party.

Legal basis: Article 112 of the General Principles of the Civil Law of the People's Republic of China stipulates that the liability of one party for breach of contract shall be equivalent to the loss suffered by the other party. The parties may stipulate in the contract that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party; It is also possible to stipulate in the contract the method of calculating the amount of damages arising from the breach of the contract.

Article 107 of the Contract Law provides that if a party fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall bear the liability for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 108: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 demand that it bear liability for breach of contract before the expiration of the performance period.

Article 111: 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. Where there is no agreement on liability for breach of contract or the agreement is not clear, and it cannot be determined in accordance with the provisions of Article 61 of this Law, the injured party may, based on the nature of the subject matter and the size of the loss, reasonably choose to require the other party to bear liability for breach of contract such as repair, replacement, rework, return of goods, reduction of price or remuneration.

According to the relevant provisions of the Contract Law, the parties may agree on a liquidated damages clause in the contract. Late payment penalty is mainly a late payment penalty when the payment is not made in time, and it is also a kind of liquidated damages. Liquidated damages and late fees can be agreed in the contract, but can be adjusted by the court of too high.

1. Liquidated damages and late fees belong to two different concepts, and late payment of metals is a concept in administrative law.

2. The mandatory penalty of liquidated damages and late fees are different, and the late payment penalty is legally mandatory, while the liquidated damages are not.

3. The subject of liquidated damages and late payment fees is inconsistent, and the late payment penalty occurs between the subjects of unequal administrative relations.

1. How to stipulate the handover fee and late payment fee in the contract.

There is no provision for late payment in the contract, and the concept in the administrative law system of late payment of metal is a punitive measure taken by the state administrative department to the administrative counterpart in accordance with the law because the administrative counterpart violates the payment obligation prescribed by law (such as taxes, business administration fees, etc.), which is mandatory by the state. In civil contracts, liquidated damages should be liquidated damages, and liquidated damages are compensation for losses.

2. Whether the late payment penalty stipulated in the contract can be recognized as liquidated damages.

The contract stipulates that the late payment penalty can be recognized as liquidated damages. Breach of contract refers to the money that one party bears the breach of contract and shall pay directly to the other party in accordance with the agreement of the parties or the law. Liquidated damages have the effect of guaranteeing the performance of debts, and also have the effect of punishing the defaulting party and compensating the losses of the innocent party.

Late payment penalty means that when the obligor fails to perform the obligation and cannot perform the obligation on behalf of others, the enforcement authority shall pay the obligation in a new and uninterrupted amount of money on a daily basis according to the period of delay of the obligor, so as to prompt the obligor to perform the obligation as soon as possible, that is, to enforce the fine, also known as the late payment fee. Late fees are statutory, mandatory and fixed.

3. Can I not pay the late fee if I do not pay the property management fee?

OK. The property management company does not have the right to charge late fees, but it can demand the payment of liquidated damages in accordance with the contract. Late payment penalty refers to the amount of a certain percentage of the overdue amount added to the number of days of overdue payment for not paying tax within the tax payment deadline or not repaying the loan according to the repayment period, which is a measure imposed by the tax authorities or creditors on the overdue parties.

Late fees are statutory, mandatory and punitive. The so-called statutory nature refers to the fact that the late payment fee is the money expressly stipulated in the national laws and regulations, and individuals and other enterprises and groups have no right to set up the system privately, and it means that the collection of late payment fee is guaranteed by the state's coercive force.

Article 585 of the Civil Code of the People's Republic of China provides that 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 it is agreed that the liquidated damages of Chang Shenshi 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.