Thinking About Strengthening The Effectiveness Of Liquidated Damages

Since our country is in market economy in its early stage, the operation of the market is not smooth or mature and it has to be guided accordingly; on the other hand, the development of our economy is very rapid, this is the symbol of a rapid development of the country; but it has also brought some thorny issues. China is now suffering in the market economy the" frequent malnutrition" phenomenon. Although the development speed, but not enough to market order maintenanceContract is the normal market economy, if often default phenomenon, then the contract this trading system existence market also will be the survival of the fittestFrom the beginning, liquidated damages are written into the law of our country at the moment, it served as the urge both parties to strictly carry out the contract functions, maintain the integrity of our business ethics. But in the present judicial practice, liquidated the function seems to be getting less, default payment guarantee contract with loss of function also affects the binding force of contract. If a contract is binding is not commercial transactions must, so also can promote our country’s market economy health stable developmentThis paper enumerates typical:inductive problem--Analysis and comparison problems--problems solving structure, explore the suitable conditions of our country’s default Jin legislation.In the first part of the article, the author cited by the Shenzhen Supreme Court case, summed up our country judicial penalty malady, and the cause of the problem is summarized as the discretion of the judge is too large, not an exercise. Its specific performance is obvious.First, the judge agreed on liquidated damages clause is qualitative power. It also shows our country to default classification standard is not unified, and the current understanding of the nature of liquidated damages for breach of contract dispute. In second, judge on the amount of liquidated damages adjustment without reference standard. Is this point led to the adjustment of the amount of damages for breach of the chaos.In the second part of the article, the author through to the penalty history and two legal breach of contract damages for breach of Jin Chuantong’s investigation, development trend makes a summary:that of the compensation of liquidated damages, punitive damages as a supplement.Based on the penalty double division criterion to distinguish, to our country present penalty system explain classified. Our default properties division standard is clear, can control the qualitative right.In the third part, the author passes pair of our country and other countries liquidated damages adjustment mechanism of the investigation, on China’s adjustment of the penalty mechanism proposed:in clear legislative adjusted reference standard; the agreed amount of liquidated damages for certain limitations; in the court of adjustment method, proposed to release Ming right flexible application.