The Closed Joint-Stock Company (CJSC) supplied, in advance of the agreement to the Omega Production Cooperative, a batch of poor-quality computers. The cooperative demanded that the CJSC pay the contractual penalty and in excess of this compensation in full amount of real damage and loss of profits. The company agreed only to pay the penalty, arguing that it would not allow a simultaneous penalty and damages (in any ratio).
A. Does the Civil Code contain definitions of penalties, real damage and loss of profits?
Q. Is a penalty for breach of contract over damages allowed?
C. Are the actions of the company legitimate?

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