Legal basis: Article 577 of the Civil Code of People's Republic of China (PRC). 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 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * If one party explicitly expresses or indicates by its own behavior that it will not perform its contractual obligations, the other party may require it to bear the liability for breach of contract before the expiration of the performance period.
Article 585 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * The parties may agree that if one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party, or they may 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.
If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.