Reading Tips In practice, when the non-breaching party sues the breaching party for payment of liquidated damages, the breaching party often requests the court to reduce the liquidated damages based on the provisions of the Civil Code regarding the adjustment of liquidated damages. However, in some contracts, not only are high liquidated damages stipulated, but it is also agreed that both parties waive the right to request the court to adjust the liquidated damages. Is such an agreement valid? Main Judgement Point If both parties to the contract agree to waive the right to request an adjustment of punitive liquidated damages, such an agreement does not violate mandatory provisions of laws or administrative regulations, nor does it violate the principle of fairness, and the agreement is valid. Case Summary On May 6, 2015, Leping Huaren Company (Party A) and Hongkelong Company (Party B) signed a "Lease Agreement", agreeing that Leping Huaren Company would build a property on th...
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