The standard of liquidated damages is money, but the parties may also agree on other property besides money. Liquidated damages can guarantee the performance of debts, punish the defaulter and compensate the losses of the innocent party. Therefore, some countries regard it as one of the measures of contract guarantee, that is, as a way to bear the responsibility for breach of contract. ←br \8592;
The parties may agree that one party shall pay a deposit to the other party as a guarantee for the creditor's rights. The deposit contract is established when the deposit is actually paid. ←br \8592;
The amount of deposit shall be agreed by the parties, but it shall not exceed 20% of the subject matter of the main contract, and the excess shall not have the effect of deposit. If the actual amount of deposit paid is more than or less than the agreed amount, it shall be deemed as a change of the agreed amount of deposit. ←br \8592;
Legal basis: Article 500 of the Civil Code. In the process of concluding a contract, if any of the following circumstances causes losses to the other party, the parties shall be liable for compensation. < br >
(1) Concluding a contract under the guise of malicious negotiation; ←br \8592;
(2) Deliberately concealing important facts related to the conclusion of a contract or providing false information; ←br \8592;
(three) there are other acts that violate the principle of good faith. ←br \8592;