The legal definition of “cure” is the process of correcting a breach, default, or violation occurring in a contract. It typically involves a coordinating party providing notice of the default and rectifying the violation or breach to their satisfaction. It is often the last chance a party has to fix a broken promise or restore the original intent of the contractual agreement.
Examples of Cure in Practice
When a contractor fails to complete work as specified in a contract, the other party could demand the breach be cured by requesting the contractor perform the work to the agreed upon satisfaction. Additionally, if one party fails to pay a specified amount on the agreed date, the other party might demand cure in the form of a payment for the full amount due, with applicable interest included.
Establishing the Cure
Once demanded, the party in breach usually gets some period of time to cure. This time is set by the non-breaching party, and may vary depending on the severity and complexity of the breach. The time period must strike a balance between providing enough time to cure, and meting out a stiff penalty in the event of default. Once the period of time to cure elapses, further legal actions may occur.
Curing Violations
Curing a breach or violation brings the agreement back into good standing, and sets it on the path towards performance. In the legal field, cure is used to allow parties to correct mistakes in order to restore their agreement to its original intent. When constructing a contract, it is important to make sure that provisions for cure are included, as it eliminates any doubt as to how a breach or violation should be handled.