The Judgment And Adjustment Of Extravagant Liquidated Damages

In our country, Contract law of the People's Republic of China Article 114 demonstrates the system of liquidated damages. However the legislation is so rude that it causes heated and endless arguments about the nature, function and use of liquidated damages. The judges with discretional power deal with the cases in different ways. In this paper the author has tried to analyze the rules of the adjustment of extravagant liquidated damages. From a judge's point of view, the author has talked about the system of liquidated damages by taking two specific cases as examples.There are four chapters besides the Preface and Conclusion in the paper.The first chapter is entitled "Fundamentals of the adjustment of the sum of liquidated damages". As to the adjustment of the sum of liquidated damages, it has analyzed its concept, characteristics, judicial practice and the legal theory foundation. And then it comes to conclusion that the adjustment of the sum of liquidated damages is to meet the requirements of contract justice and the characteristics of liquidated damages, and it can benefit the innocent party and society.The second chapter is entitled "Judgment of extravagant liquidated damages". This chapter is about the forms of liquidated damages system through the Aufklaerung conditions of extravagant liquidated damages, the criterions of extravagant liquidated damages and distribution of the duty of offering testimony.The third chapter is entitled "Adjustment of extravagant liquidated damages". It has demonstated the adjustment principles, adjustment limitation and the binding of the judges with discretional power.The forth chapter is entitled "Reflection of the perfection of liquidated damages system". By combining with Chinese legislative and practical situations, this paper has tried to offer some suggestions about how to perfect the liquidated damages system in China.