There is no standard of liquidated damages for not paying according to the time agreed in the contract. According to relevant laws, the penalty for overdue payment can be agreed by both parties. Nowadays, in the trial of related cases, the people's courts basically calculate the liquidated damages according to the interest of overdue loans announced by the central bank, and the interest rate of loans announced by the central bank will be adjusted appropriately every year.

Legal analysis

If the parties to the contract have not agreed on the standard of liquidated damages for overdue payment, the people's court may calculate the liquidated damages for overdue payment with reference to the standard of interest charged by the financial institution loans overdue stipulated by the People's Bank of China. When the People's Bank of China adjusts the standard for financial institutions to charge interest on overdue loans, and the default is caused by the unclear and incomplete performance period agreed in the contract, the people's court may adjust the calculation standard for calculating the liquidated damages for overdue payment accordingly. The performance period agreed in the contract is not clear, which is easy for the parties to misunderstand or misinterpret, leading to the parties' breach of contract. Due to the lax management of contract review and the lack of feasibility study on the contract, the signed contract cannot be performed, the market situation changes or the price rises and falls sharply, which affects the full performance of the contract and leads to the parties' breach of contract, and the parties cannot perform the contract due to force majeure events such as natural disasters and the parties' breach of contract due to changes in circumstances.

legal ground

Article 585 of the Civil Code of People's Republic of China (PRC), the parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the situation of breach of contract, and may also agree on the calculation method of damages for breach of contract. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the party concerned pays the liquidated damages due to delay in performance, the breaching party shall also perform the debt after paying the liquidated damages.