On The Judicial Adjustment Of Penalty

Freedom of contract is one of the important factors for the development of commodity economy in modern times.As the equal subject of market transactions,the parties through the autonomy of the word promote the circulation of goods(services)and maximize the interest of the parties in transactions.Of course,in the face of complex and diverse economic and social patterns,this state is clearly idealized.Therefore,in order to guarantee the smooth performance of the contract,people have agreed on the penalty clause when the contract is concluded.When a party breaches the contents of the contract,it should pay the other party a certain amount of property.As a concrete embodiment of the freedom of contract,the terms of the breach of contract clauses are high,low,and moderate.Except for moderate cases of liquidated damages,one of the parties was able to make a profit,and the other party suffered a loss.At this time,in order to maintain the fairness of the transaction,it is necessary to use the judicial power to restrict the freedom of the contract to a certain extent and regulate the market behavior of the market players.However,judicial intervention in the market needs to be guaranteed within a certain limit.Otherwise,the intervention market will become a destructive market.Therefore,this article is based on the"judicial adjustment of breach of contract payments" and hopes to help China's perfecting the penalty adjustment system and regulating market behavior.