Contractual penalties are specific consequences stipulated in a business agreement that a violating party may incur in the event of a security clause breach. These often include fines and legal action as a direct recourse available to the other party. Loss of business is a secondary effect that may naturally follow due to damaged trust but is not typically an immediate consequence outlined in contracts. Similarly, regulatory fines are imposed by authorities for non-compliance with laws, not for breaches of contracts between private entities. Lastly, forced cybersecurity upgrades are a potential contractual requirement post-breach, but they are not usually an immediate punitive measure.