Notice to Cure

A notice to cure is a formal written notification sent by one party to the other when a breach of contract has occurred. It identifies the specific breach and gives the non-compliant party a defined period of time, typically 30 days, to correct or cure the issue before the notifying party can exercise further remedies such as termination. Notice to cure requirements are typically spelled out in the termination provisions of a contract and must be followed precisely to preserve the notifying party's legal rights.

Why It Matters Notice to cure clauses protect both parties in a contract. For the party sending the notice, following the correct process is essential to preserving the right to terminate or seek damages. For the party receiving the notice, it provides an opportunity to correct the issue before the relationship is ended. Businesses that are unaware of the notice to cure requirements in their contracts risk either losing their right to terminate or failing to respond to a notice they have received in time to avoid termination.

In Practice A company discovers that a software vendor has repeatedly failed to meet the uptime requirements defined in their SLA. Before terminating the agreement, the company's legal team reviews the contract and finds a notice to cure clause requiring them to provide written notice and allow 30 days for the vendor to remedy the breach. The team sends the notice, the vendor fails to cure within the window, and the company proceeds with termination on solid legal footing.