What’s the judicial opinion regarding a claim of high liquidated damages?
In commercial transactions, the parties often agree on high liquidated damages in the contract, by which they hope that the counterparty’s behavior could be bound more effectively, and the observant party could obtain maximum relief in the event of a breach of contract. For example, in the “Agreement on Exclusive Purchase of Audio and Video Programs”, Company A and Company B agreed that if the drama failed to be broadcast on the agreed satellite TV channel and time period, Company B had the right to terminate the agreement, and Company A shall pay liquidated damages amount to 30% of the total amount of the payment, which is RMB10.8…