The pilot reported that while flying with a certified flight instructor (CFI) for his biannual review, they were simulating an engine failure over the airport with the intent to land on the runway. After spiraling to traffic pattern altitude, the pilot entered a downwind leg for the runway. The pilot turned towards the runway and inadvertently stalled the airplane about 200 feet above the ground. The CFI took over the flight controls; the airplane struck the ground hard, broke off the right main landing gear, and bounced back into the air. The CFI climbed to a safe altitude and circled above the airport before conducting an uneventful landing onto the grass next to the runway. During the accident sequence, the right wing sustained substantial damage. The pilot reported no mechanical failures or malfunctions with the airframe or engine that would have precluded normal operation.