Which of the following is true regarding the availability of liquidated damages in China?
A) Liquidated damages are not available in China.
B) Through judicial mandate, China adopted the U.S. standard for awards of liquidated damages.
C) Liquidated damages are available under the People's Republic of China Contract Law legislation, but only in amounts of up to 20% of the actual damages incurred by the breaching party.
D) Liquidated damages are available under the People's Republic of China Contract Law legislation, but Chinese judicial interpretation of the law limits liquidated damages to no more than 10 percent above the actual damages incurred by the nonbreaching party.
E) Liquidated damages are available under the People's Republic of China Contract Law legislation, but Chinese judicial interpretation of the law limits liquidated damages to no more than 30 percent above the actual damages incurred by the nonbreaching party.

Question

Quizplus · Accepted Answer

In Section 114.2 of the People's Republic of China (PRC) Contract Law legislation, Chinese law recognizes the existence and enforceability of liquidated-damage clauses in contracts. However, Chinese judicial interpretation of this section limits liquidated damages to no more than 30 percent above the actual damages incurred by the nonbreaching party.

Which of the Following Is True Regarding the Availability of Liquidated