Research On Judicial Reduction Of Liquidated Damages

In judicial practice,although there are provisions in the contract law and the contract law interpretation(?)in the judicial liquidated damages reduction system,the provisions themselves lack clear standards,resulting in different courts have different understandings of legal provisions,and different benchmarks for the measurement and reduction of liquidated damages in practice;Moreover,the law itself is not clear about the function of liquidated damages,and there are obvious drawbacks in mixing compensatory liquidated damages and punitive liquidated damages.Therefore,this paper firstly tries to sort out the function and type of liquidated damages in principle,and analyzes the difference between compensatory liquidated damages and inherent liquidated damages in judicial reduction system.Secondly,on the basis of the different functions and types of liquidated damages in principle,this paper points out that the current liquidated damages judicature reduces the defects of the legal provisions,and discusses a more reasonable explanation under the current legal provisions,so that the compensatory liquidated damages and the inherent liquidated damages can be applied separately.Finally,based on the recent breakthrough of continental law and Anglo-American law in the judicial adjustment of traditional liquidated damages,this paper takes a perspective of compensatory liquidated damages in advance,and measures as well as adjusts the damage amount with reasonable estimation.The liquidated damages of inherent meaning is measured by three benchmarks:the theory of binding force of contract,the creditor's legitimate interest and the principle of completely disproportionate.Only when the liquidated damages established under the weak binding force of agreement is disproportionately higher than the creditor's legitimate interest does the judicial intervention need to be done.In this way,the paper tries to construct a liquidated damages judicial adjustment system which is more in line with the principle of liquidated damages and has more logical strength.