英文摘要 |
It is stipulated in the last paragraph of Article 114 (2) of The Contract Law: 'where the amount of liquidated damages prescribed exceeds the loss resulting from the breach, a party may petition the People's Court or an arbitration institution to decrease the amount as appropriate'. Such right should be defined as the reduction right of liquidated damages, and in its nature, is the right of formation through suit. The reduction right of liquidated damages, belonging to contractual parties, shall be executed in ways of suit and counterclaim. And such right can still be executed by the parties in the procedure of second instance in case of not being waived in the procedure of first instance. It is reasonable for the judge to interpret the execution of reduction right of liquidated damages under his (her) discretionary power. When interpreting, the judge shall remain neutral, open and respect the parties' right of disposition. The failure of interpretation does not constitute the reason for appeal, but parties may apply for withdrawal in case of excessive interpretation. During the procedure of reducing the liquidated damages, the burden of proof for 'excessively high liquidated damages' is on the breach party and shall not be transferred. However, under the special circumstances where producing evidence is of too much difficulty, the judge may ease the breach party's burden of proof through reducing the standard of proof and inquiring the parties. |