Cure: Overview, definition, and example
What is cure?
In legal and contractual contexts, "cure" refers to the process by which a party remedies or fixes a breach or non-compliance with the terms of an agreement or contract. A cure typically involves correcting a failure to perform or addressing an issue within a specified period to restore the agreement to its intended status. The right to cure is often provided in contracts as a way for the breaching party to correct their mistake or non-performance without immediately facing penalties, damages, or termination of the agreement.
For example, if a tenant fails to pay rent on time, the lease agreement may allow the tenant a certain period to "cure" the default by paying the overdue rent without facing eviction.
Why is cure important?
The concept of cure is important because it offers a mechanism for addressing breaches or defaults in a contract before more serious consequences are triggered. It allows parties to resolve issues, restore the contractual relationship, and avoid termination, litigation, or other legal consequences. Cure provisions can promote fairness by providing an opportunity to fix mistakes, especially for minor or unintentional breaches, and can help maintain business relationships by offering a chance for resolution.
For businesses and individuals, understanding the right to cure is essential in managing contractual obligations and mitigating risks in the event of non-compliance or failure to perform as expected. It also provides a structured opportunity to resolve disputes before they escalate into more severe legal actions.
Understanding cure through an example
Imagine a supplier who has agreed to deliver goods to a retailer by a specific date, but fails to meet the delivery deadline. The retailer’s contract with the supplier includes a cure provision, which states that the supplier has 10 days after the missed delivery date to fix the breach by delivering the goods. During this period, the supplier can "cure" the breach by fulfilling their obligation to deliver the goods as originally agreed, preventing the retailer from canceling the contract or seeking damages.
In another example, a tenant in a residential lease agreement fails to maintain the property as stipulated in the lease terms. The lease includes a cure provision that gives the tenant a set period to fix the violation, such as repairing damage to the property, before the landlord can pursue eviction or other legal remedies.
An example of a cure clause
Here’s how a cure clause might appear in a contract:
“If either party fails to perform any of its obligations under this Agreement, the non-breaching party shall provide written notice of the breach to the breaching party. The breaching party shall have 30 days from the date of the notice to cure the breach. If the breach is not cured within the specified time, the non-breaching party may terminate this Agreement and pursue all available remedies.”
Conclusion
The right to cure is an essential concept in contract law, providing parties with an opportunity to remedy breaches or non-performance before facing more severe legal consequences. It helps maintain business relationships, promote fairness, and offer a structured way to resolve issues. By understanding the right to cure, parties can better manage their contractual obligations and avoid unnecessary disputes or terminations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.