1. The amount of liquidated damages shall be agreed by both parties. However, the maximum loss shall not exceed 30%, and if it exceeds 30%, it may request the court to reduce it appropriately;

2. If the parties to a contract fail to stipulate liquidated damages in the contract, the liquidated damages are equivalent to the actual economic losses caused by the breach of contract.

The scope of compensation for breach of contract expenses includes:

1, damages for non-performance of debts. Including available interests (performance interests) and trust interests;

2. Compensation for damages caused by the termination of the contract:

Necessary expenses incurred by the creditor for concluding the contract;

Necessary expenses incurred by the creditor for preparing to believe that the contract can be performed;

Losses caused by creditors losing the opportunity to conclude contracts with others.

Losses caused to the debtor by the debtor's refusal to perform the obligation to return the paid goods after the creditor's performance of the contractual obligations.

The necessary expenses incurred by the creditor to repay the debt after receiving the debt settlement.

To sum up, the buyer agrees that the subject matter of the liquidated damages is money, but the parties may also agree that the subject matter of the liquidated damages is other property than money. Generally speaking, the upper limit of the contract penalty is not more than 30% of the actual loss. But if it is too high or too low, you can ask the court to reduce or increase it. According to the law of our country, if the agreed liquidated damages are lower than the losses caused, the parties may request the court to increase them; If the agreed liquidated damages are excessively higher than the losses caused, the parties may request the court to reduce them appropriately.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 577

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.

Article 578

If one of the parties expressly expresses or shows by his own behavior that he will not perform the contractual obligations, the other party may require him to bear the liability for breach of contract before the expiration of the performance period.

Article 579

If one party fails to pay the price, remuneration, rent and interest, or fails to perform other monetary debts, the other party may demand payment.