Liquidated Damages System Research

As the global market economy continues to develop and deepen, originated in Roman law the penalty system is already being widely used around the world in economic activities, now is still flashing its unique light, and has developed into the world of contract law Essential in terms of the main economic activity in regulating the market, maintaining market order and promote the harmonious development of economy has played an important role. Liquidated damages for breach of contract responsibility system on the monetization of the exact specification of the number of contract law it is essential in the important position of contract law has become the undisputed economic relations in the adjustment of the basic system. With the agreement of liquidated damages, the amount of certainty in advance, from the property, and other non-unique characteristics, the nature of liquidated damages should be the main compensatory and punitive supplement. Judicial practice, to be liquidated damages and other liability for breach of a multi-pronged approach, a reasonable full play to the performance of a variety of remedies, the interests of creditors, the transaction to be a full range of security and safety maintenance. Application of the law of liquidated damages should follow the fairness, integrity, the principles of autonomy, and meet certain conditions. Determine the penalty amount, various factors should be considered, on the lower or much higher than the actual loss to be adjusted. China's'Contract Law'Section 114 provides for breach of contract payments, compared with previous legislation, the contract provisions related to breach of contract system has been significant progress, but also reflects the requirements of the times. However, the system still exist in China agreed liquidated damages penalty and agreed method of calculating the damages provisions of the same concept is not clear whether the'loss'for the liquidated damages clause is the only reference to the applicable standard is open to question, regarding the payment of punitive damages Provides imperfect adjustment of liquidated damages provisions of defects and other issues, and improve the system of penalty, the principle of fairness is the most important theoretical basis, specifically, should the agreed liquidated damages and agreed method of calculating the amount requirement, respectively, clearly Reference standard for liquidated damages, punitive damages on a reasonable regulation, improve the penalty adjustment regulations.