The Research Of Liquidated Damages Reduction

The main purpose of the terms of the liquidated damages clause is to ensure the smooth implementation of the contract and to prevent the parties to the contract to breach of contract.At the same time,in advance to set the responsibility for breach of contract in order to reduce the dispute of the liability for breach of contract after the breach of contract.Therefore,the terms of the liquidated damages in the contract is a common term,but also has important significance.However,the terms of the liquidated damages may sometimes be too high and too high breach of contract will make the liquidated damages to lose its due role.Then we need the liquidated damages reduction system to regulate it.This article mainly studies the problems existing in the judicial practice of the implementation of the system of breach of contract.So it is an effective analysis based on the results of a large number of cases in order to be able to play a certain role in improving the system of liquidated damages reduction.The article is mainly studied from the following parts:The first part is the summary of the liquidated damages reduction,including the concept of liquidated damages reduction and the necessity of liquidated damages reduction.The author believes that the nature of liquidated damages is compensatory,punitive or the main compensation punished as a supplement all should be reduced.In addition,the principle of good faith and the principle of fairness also require that the liquidated damages should be reduced when it is too high.The second part is the quantitative analysis of cases of the liquidated damages reduction.Through the number of cases the author found that the number of cases of liquidated damages reduction is so high that the effectiveness of the terms of the liquidated damages is difficult to achieve.I believe that some liquidated damages should not be reduced,including the liquidated damages of the form of contract in the provider,the liquidated damages of business body,the liquidated damages of successful payment and the liquidated damages of intentional breach.The third part is the analysis of the liquidated damages reduction standard.According to the court ruling on the judicial practice of the standard study,I found that the application of standards is too rigid in many cases and the judge discretion of the liquidated damages reduction is too large in many cases that there is no reference standard.Therefore,the author believes that the verdict should be based on several general liquidated damages reduction standard.Then The judge plays discretion,considering the actual situation of the case,including the parties to the "loss",the performance of the contract,the degree of fault,The position of the defaulting party,the social situation and other factors.The fourth part is the analysis of the court taking the initiative to start liquidated damages reduction.Through the study of the court verdict,the author found that in many cases the parties did not raise the request of the liquidated damages reduction.But the court took the initiative to reduce it.I believe that when the liquidated damages do not exceed a certain limit,if the parties give up their rights and the court should not take the initiative to reduce it.But once the parties have objections to the liability for liquidated damages and the court should regard it as a request of liquidated damages reduction,taking the initiative to reduce.When the liquidated damages exceed the upper limit,the court shall take the initiative to reduce.