Which of the Following Best Explains  'Penalty Clause

Which of the following best explains  'Penalty clause'? 

A)  That part of the contract which will stipulate what will happen if a supplier does not meet its obligations. 
B)  That part of the contract which will stipulate what will happen if a supplier meets its obligations. 
C)  That part of the order which will stipulate what will happen if a supplier does not meet its obligations. 
D)  That part of the order which will stipulate what will happen if a supplier meets its obligations.