Damages in China
When one party fails to meet their contracted obligation(s), an individual or business may be affected financially and in other ways. according to Chinese contract law when one party breach contract, the other party can sue for loss or damages, the following type damages may be happen:
Compensatory Damages: Suing for compensatory damages may be appropriate when you, the injured party, have suffered financial losses due to the breach of contract.
Punitive Damages: Punitive damages are designed to punish the wrong party in a breach of contract case. The amount of money awarded is not equal to the amount lost as a direct result of the contract breach.
Liquidated Damages: The party that breaches the contract may be forced to pay liquidated damages. Damages of this type are included within the wording of the contract. They are put there to discourage either party from breaking the agreement.
Consequential Damages: Consequential damages may be awarded to a party under breach of contract law if they have suffered damages due to an indirect break of the contract agreed upon and signed by the two parties.