Party A's liquidated damages shall be agreed according to the breach of contract, and the maximum penalty shall not exceed 30% of the actual loss. If the amount of liquidated damages is unreasonable, the parties may request the people's court or arbitration institution to increase or decrease it.

Litigation needs to meet the following conditions:

1. litigants have litigation rights: litigants refer to natural persons, legal persons or other organizations that have the right to file lawsuits or be sued. The litigant must have the right to appeal, that is, according to the law, he can bring a lawsuit or be sued;

2. Litigation request has legal basis and legitimacy: Litigation request refers to the specific content that litigants request the court to protect their legitimate rights and interests. The litigation request must have legal basis and legitimacy, that is, it conforms to the legal provisions and social public order and good customs;

3. Clear litigation request: The litigation request must be clear and specific, and there can be no ambiguity and uncertainty. Otherwise, the court will not be able to make a clear judgment or ruling;

4. Litigation claims do not fall within the scope of non-acceptance by the court: according to the law, the court has a certain scope of non-acceptance, such as trial jurisdiction and limitation of action. The claim must be accepted by the court, otherwise the court will not accept it.

Civil litigation is divided into the following processes:

1. Case acceptance: After the parties file a lawsuit with the people's court, the court will review the legality of the litigation request and whether it meets the litigation conditions. Those who meet the conditions shall be accepted;

2. Filing a case for mediation: After accepting the case, the court will file a case according to law and inform the defendant of the right of reply. In this process, the court will also try to mediate disputes between the parties. If the mediation is successful, the case does not need to continue;

3. Proof and cross-examination: If the mediation is unsuccessful, the court will ask the parties to submit evidence for proof and cross-examination. At this stage, the parties need to submit relevant evidence to prove that their claims are correct;

4. Trial judgment: After the evidence and cross-examination are completed, the court will arrange a trial, listen to the statements and debates of the parties, further investigate the facts, and finally make a judgment. If a party refuses to accept the judgment, he may appeal;

5. Execution: When the judgment comes into effect, the sentenced person shall execute the judgment; If not, he can apply to the court for compulsory execution to protect the legitimate rights and interests of the applicant.

To sum up, in any case, we must abide by laws and regulations, be honest and trustworthy, and avoid violating the contract and causing unnecessary disputes.

Legal basis:

Article 585 of the Civil Code of People's Republic of China (PRC)

The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the situation of breach of contract, and may also agree on the calculation method of the amount of compensation 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.