Remedy for Breach is an element of a contract. Which option is the correct label?

• A. Remedy for Breach
• B. Performance Bond
• C. Payment Bond
• D. Indemnity

Answer: (A)

The concept being tested is how contract elements are labeled to identify the type of provision they describe. The element that specifies what remedy is available when a party breaches the contract is literally labeled as the remedy itself. So the correct label is “Remedy for Breach” because it directly names the relief or actions that can be pursued in response to a breach (such as damages, specific performance, or injunction).

The other terms refer to different contract concepts: bonds are surety instruments guaranteeing particular obligations (past performance or payment), and indemnity is a risk-shifting clause, not the label for a breach-remedy provision. Therefore, the term that accurately labels the breach remedy is the remedy itself.