In the contract penalty, the amount and scope are clearly defined. Generally speaking, follow the following points: 1. Agreed liquidated damages. If the amount or calculation method of liquidated damages is stipulated in the contract, it shall generally be in accordance with the contract; 2. Paragraph 2 of Article 114 of the Contract Law stipulates that if the agreed liquidated damages are lower than the losses caused, the parties may request the people's 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; . If the parties need the court to increase the liquidated damages or the liquidated damages are excessively higher than the losses, they need to bear the responsibility of proving the size of the losses. Third, in the judicial interpretation of the contract law, if the parties demand a reduction on the grounds that the agreed liquidated damages are too high, they should reduce them appropriately on the basis that the liquidated damages exceed 30% of the losses. This is a comment on the excessive liquidated damages in the contract law, not a provision on the proportion of liquidated damages. Legal basis: If the liquidated damages stipulated in the second paragraph of Article 114 of People's Republic of China (PRC) Contract Law are lower than the losses caused, the parties may request the people's court to increase them; The agreed liquidated damages are excessively higher than the losses caused.