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How to stipulate liquidated damages in a second-hand house sales contract?

(1) In fact, when a second-hand house sales contract is concluded, the so-called liquidated damages should include two aspects: the amount of liquidated damages and the calculation method of liquidated damages
(2) Moreover, the amount and calculation method of breach of contract shall be determined by negotiation between the buyer and the seller according to their own wishes. For example, the second-hand house sales contract can stipulate that the liquidated damages are 20% of the total house price, and the transaction habit of second-hand houses increases the approval rate by 20%.

(3) However, after the buyer and the seller agree on liquidated damages, it is discovered that the losses caused by one party's breach of contract are inconsistent with the liquidated damages. In order to protect the interests of both parties, the buyer and seller can handle it in the following ways:
1. The parties may request the court or arbitration institution to compensate for breach of contract if the amount of liquidated damages agreed in the contract is lower than the losses caused.
2. If the agreed liquidated damages exceed the losses caused, the parties may request the court or arbitration institution to appropriately reduce it.

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The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail.

Yingting Law Firm has rich practical experience, uses solid legal knowledge and theoretical literacy to study relevant legal disputes, has accumulated rich experience in handling cases in all aspects, and treats every client with care.