What Does “Cure Period” Mean in a Contract?
A specified timeframe during which a breaching party can fix their breach before the other party can terminate.
Detailed Explanation
A cure period gives the breaching party a chance to make things right before facing termination or other consequences. It's a grace period - if you fix the problem within the specified time, the breach is considered cured and the contract continues.
Cure periods vary widely - from a few days for payment defaults to 30 or more days for operational breaches. Some breaches (like confidentiality violations) may have no cure period.
Example in a Contract
“Prior to exercising any termination right for breach, the non-breaching party must provide written notice describing the breach and allow the breaching party thirty (30) days to cure. If the breach is cured within such period, the notice shall be deemed withdrawn.”
Why It Matters
Cure periods protect you from immediate termination for fixable problems. If you breach, act quickly during the cure period. If you receive a cure notice, take it seriously - failure to cure leads to termination.
Related Terms
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