If the seller or the buyer breaches the sale and purchase agreement, the other party may claim for damages or cancel the contract. It is common to prescribe liquidated damages for violation of the agreement.*Civil Code(Compensation for Loss or Damage Due to Non-Performance)Article 415: (1) If an obligor fails to perform consistent with the purpose of the obligation or the performance of an obligation is impossible, the obligee may claim compensation for loss or damage arising from the failure; provided, however, that this does not apply if the failure to perform the obligation is due to grounds not attributable to the obligor in light of the contract or other sources of obligation and the common sense in the transaction.(2) If the obligee is entitled to claim compensation for loss or damage pursuant to the provisions of the preceding paragraph, and any of the following cases applies, the obligee may claim compensation for loss or damage in lieu of the performance of the obligation:(i) the performance of the obligation is impossible;(ii) the obligor manifests the intention to refuse to perform the obligation; or(iii) the obligation has arisen from a contract, and the contract is cancelled or the obligee acquires the right to cancel the contract on the ground of the obligor's failure to perform the obligation.(Cancellation After Demand)Article 541: If one of the parties does not perform that party's obligation, and the other party demands performance of that obligation, specifying a reasonable period of time, but no performance is completed during that period, the other party may cancel the contract; provided, however, that this does not apply if the non-performance of the obligations upon the passage of the period is minor in light of the contract and the common sense in the transaction.(Cancellation Without Demand)Article 542: (1) In the following cases, the obligee may immediately cancel the contract without making the demand referred to in the preceding Article:(i) if the performance of the whole of the obligation is impossible;(ii) if the obligor unequivocally manifests the intention to refuse to perform the obligation in whole;(iii) if the performance of part of the obligation is impossible, or if the obligor clearly manifests the intention to refuse to perform part of the obligation and the purpose of the contract cannot be achieved by the performance of the remaining part of the obligation;(iv) if, due to the nature of the contract or a manifestation of intention by the parties, the purpose of the contract cannot be achieved unless the obligation is performed at a specific time on a specific date or within a certain period of time, and the obligor fails to perform the obligation at that time or before that period of time expires; or(v) beyond the cases set forth in the preceding items, if the obligor does not perform the obligation and it is obvious that the obligor is unlikely to perform the obligation to the extent necessary to achieve the purpose of the contract even if the obligee makes the demand referred to in the preceding Article.(2) In the following cases, the obligee may immediately cancel a part of the contract without making the demand referred to in the preceding Article:(i) the performance of the part of the obligation is impossible; or(ii) the obligor clearly manifests the intention to refuse to perform the part of the obligation.