Cure Periods: Your Window to Fix a Breach
What Is a Cure Period?
A cure period is a contractually defined window of time during which a party that has breached the agreement can fix ("cure") the problem before the other party can exercise remedies like termination, acceleration, or seeking damages.
How Cure Periods Work
A typical cure provision follows this sequence:
- Party A breaches a contract term
- Party B sends written notice identifying the specific breach
- Party A has a defined number of days (the cure period) to remedy the breach
- If Party A cures within the window, the breach is treated as if it never happened
- If Party A fails to cure, Party B can proceed with available remedies
Cure periods commonly range from 10 to 30 days, though complex breaches (like construction defects) may warrant 60 to 90 days.
Why Cure Periods Matter
Without a cure period, a minor oversight could trigger immediate termination or acceleration. Cure periods protect both parties:
- The breaching party gets a chance to fix honest mistakes
- The non-breaching party avoids the disruption and cost of terminating a relationship over curable issues
- Both parties benefit from contract stability
What to Watch For
- No cure period at all. If the contract allows immediate termination or acceleration upon any breach, a trivial mistake could end the relationship. This is especially risky in leases and loan agreements.
- Unreasonably short periods. A 3-day cure period for a complex breach may be functionally the same as no cure period.
- Cure periods for some breaches but not others. This is sometimes appropriate (payment breaches may not need 30 days to cure), but ensure the distinction is fair.
- Repeated breaches. Some contracts limit cure rights if the same breach occurs multiple times, which is generally reasonable.
- Notice requirements. Ensure the cure period does not begin until proper written notice is given, not from the date of the breach itself.
When to Consult a Lawyer
Consider consulting an attorney if you have received a breach notice and need to understand your cure rights, or if you are negotiating a contract and want to ensure adequate cure protections.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.