Question 1

How long is a typical cure period?

Accepted Answer

It varies by contract type. Commercial leases typically give 10–30 days. Business contracts often allow 30 days for monetary defaults and 60 days for non-monetary defaults. Loan agreements might give 5–15 business days. The length should match the complexity of the issue — fixing a missed payment takes less time than fixing a performance failure.

Question 2

Does a cure period start automatically or do I need notice?

Accepted Answer

Most contracts require the non-breaching party to send written notice before the cure period starts. This notice typically identifies the specific breach and what's needed to fix it. Without notice, the cure period hasn't started, and the breaching party can argue they didn't know there was a problem.

Question 3

What happens if I fix the breach during the cure period?

Accepted Answer

The contract continues as if the breach never happened. No termination, no damages for the cured breach. Some contracts limit the number of times you can cure — like 'three cure periods per year' — so repeated breaches, even cured ones, can eventually lead to termination rights.

Question 4

Can I have a cure period for every type of breach?

Accepted Answer

Not always. Many contracts exclude certain breaches from cure periods: IP infringement, confidentiality violations, and criminal conduct are common exceptions. The logic is that some breaches can't be 'fixed' — you can't un-share a trade secret. Negotiate to keep cure periods for all breaches you can actually remedy.

Question 5

What happens if the breach can't be cured within the cure period?

Accepted Answer

If you're making genuine progress, some contracts allow extended cure periods — 'provided the breaching party has begun remediation and is diligently pursuing it.' Without that language, the non-breaching party can terminate once the cure period expires, regardless of your progress.

Question 6

Is a cure period the same as a grace period?

Accepted Answer

They're similar but not identical. A grace period typically prevents a default from being declared — your payment isn't even considered late during the grace period. A cure period kicks in after a default has occurred, giving you time to fix it before consequences follow. Grace periods happen before default; cure periods happen after.

Cure Period

Definition

In Practice

Common in these contract types

Related terms

Frequently asked questions about cure period

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