Research On The Adjustment Of The Liquidated Damages

In general, the parties of the contract can reach an agreement about rights and obligations freely. In case either of the party has breached the contract, observant party could claim the Liquidated damages pursuant to the contract, but when the Liquidated damages is too high or too low, the parties will suffer unfair treatment. Therefore, many countries have established the system of adjustment of liquidated damages. Contract law of the people's Republic of China also adopt Appropriate intervention principle. In case the liquidated damages is lower than the actual loss, observant party coule apply to adjustment ,and when the Liquidated damages sum is much higher than the actual loss, the party in breach could apply to reduce the amount of money appropriately.This article discussed about the breach of contract, liability for breach of contract and the liquidated damages ,and also discussed about other basic theories. The author thinks that we should respect the principle of voluntary and could not adjust the liquidated damages not strictly.If it is unfair when we obey the liquidated damages,we can apply to Contract law.