Contracts

Cure Period

Also known as: Notice and Cure

The time given to a defaulting party to fix a contract breach before the other party can terminate or pursue remedies.

A cure period is a contractual or statutory grace period giving a party in breach the chance to fix the problem before the other party can terminate the contract or pursue legal remedies. The standard sequence: party A defaults, party B issues a written notice of default specifying the breach, party A has the cure period (often 7, 14, or 30 days) to remedy the breach, and only after the cure period expires can party B terminate or sue.

Most construction contracts include cure periods for both parties: contractors get a cure period before the owner can terminate for default; owners get a cure period before the contractor can stop work for non-payment. Cure-period notices must be precise about what breach is alleged and what action will cure it. Vague notices are sometimes invalid and reset the clock. Issuing a proper notice of default is one of the most underused contractor protections in payment disputes.

Frequently asked questions

How long is a typical cure period?+

Varies by contract. Common lengths are 7 days for non-payment, 14 days for performance issues, and 30 days for major scope disputes. AIA contracts use 7 days for the contractor's right to stop work after non-payment and 7 days written notice for owner termination for cause.

What must a notice of default contain?+

Identification of the contract, identification of the breaching party, specific description of the breach, the cure required, the cure period, and consequences of failure to cure. Vague notices are often unenforceable.

Can I terminate a contract without a cure period?+

Only if the contract permits immediate termination for the specific breach (e.g. termination for convenience, or repeated breach after prior cure failures). Most material breaches require notice and cure first, even on egregious failures.

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