| Summary: | 碩士 === 國防大學 === 法律學系 === 104 === Provisions of penalty has been used broadly in various types of procurement contracts in practice to ensure that the debtor undertaking the conventional obligations will perform the debts as its main purpose and enhance the public procurement with efficiency. However, there are still many disputes in practical applications, the characterization of the penalty in contracts and the penalty calculation methods, the definition of “disproportionately high” penalty, and the way to reduce penalty to a reasonable amount are the focal points in practice. The criterial for considering actual penalty reduction may be developed in light of practice from the facts of various procurement cases. The matter of greatest concern is determined by the factors under consideration which influence the court in using discretion in the application of its powers. The main factor evaluated by the courts when judging whether to utilize its power to reduce a penalty is “actual damage suffered”. By analyzing the actual court cases, this research introduces the structure of penalty, categorizes the standards of reducing penalty and provides concrete suggestions accordingly.
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