Legal analysis
(1) Liability for breach of contract. If one party fails to perform its contractual obligations or fails to meet the contract obligations, it shall bear the liabilities for breach of contract such as continuing to perform, taking remedial measures or compensating for losses. (2) Provisions on Liability for Breach of Contract The parties to a contract may stipulate the liability for breach of contract in detail, and may stipulate the liquidated damages for delayed delivery of goods or payment for goods. A general breach of contract clause can also be agreed: "If any party breaches this agreement, which makes it impossible to continue to perform this agreement, the breaching party shall compensate the observant party for the liquidated damages of RMB. If the liquidated damages are insufficient to compensate the observant party for its actual losses, the breaching party shall compensate the observant party for all the actual losses. (III) Scope of damages: If one party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the agreement, thus causing losses to the other party, the amount of damages shall be equivalent to the losses caused by the breach of contract, including the benefits that can be obtained after the performance of the contract, but shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract. Operators who provide commodities or services to consumers are fraudulent shall be liable for damages in accordance with the provisions of the Law of People's Republic of China (PRC) on the Protection of Consumer Rights and Interests. (4) liquidated damages. The parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the breach of contract, and may also agree on the calculation method of the amount of compensation for losses caused by breach of contract. If the agreed liquidated damages are lower than the losses caused, the parties may request the people's court or arbitration institution to increase them; If the agreed liquidated damages are excessively higher than the losses caused, the parties may request the people's court or arbitration institution to reduce them appropriately. If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.
legal ground
Article 585 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * The parties may agree that if one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party, or they may agree on the calculation method of damages for breach of contract. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If 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 concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.