Joke Collection Website - Public benefit messages - What will happen if you don't pay liquidated damages freely?
What will happen if you don't pay liquidated damages freely?
The observant party may bring a lawsuit to the court, and the court will order the defaulting party to pay liquidated damages. If the payment is refused, the court can enforce it. According to the law, if one party fails to perform the contractual obligations or fails to meet the contractual obligations, it shall be liable for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.
According to Article 585 of the General Principles of Civil Law of People's Republic of China (PRC), the parties may agree that one party shall pay a certain amount of liquidated damages to the other party in case of breach of contract, and may also 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.
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