Legal basis: Article 584 of the Civil Code of People's Republic of China (PRC). If one party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the agreement, thus causing losses to the other party, the amount of compensation shall be equivalent to the losses caused by the breach of contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.