Certified Texas Contract Manager Practice Exam

What are examples of remedies that can be included in contractual agreements?

1. Only liquidated damages and restitution damages

2. Compensatory damages, punitive damages, and normal damages

3. Aggressive penalties and early termination clauses

4. Performance reviews and future opportunities

The correct answer is: Compensatory damages, punitive damages, and normal damages

In the context of remedies that can be included in contractual agreements, the selection of compensatory damages, punitive damages, and normal damages encompasses a broad range of legal responses designed to address breaches of contract. Compensatory damages are meant to compensate the injured party for the actual loss suffered due to the breach, aiming to put them in the position they would have been in had the contract been fulfilled. Punitive damages, while less common in contract cases, may be included when a breach involves particularly egregious behavior intended to punish the wrongdoer and deter similar actions in the future. Normal damages, a more general term, can refer to any monetary compensation awarded for the loss incurred from the breach. The other options suggest remedies that may not traditionally fit within the framework of contractual agreements or lack the necessary legal basis. For instance, liquidated damages and restitution damages mentioned in the first choice are specific types of damages but do not encapsulate the breadth of possible remedies. The mention of aggressive penalties and early termination clauses in another choice leans more towards contract provisions rather than remedies for breaches. Lastly, performance reviews and future opportunities have little relevancy as legal remedies within a contract, as they are more about procedural evaluations or potential future actions rather than compens