Cure Period

Remediation Window

Length of time granted for corrections varies depending on the severity of the breach and the terms of the master agreement. A standard cure period for a payment default might be five days, while a technical breach could allow for thirty days. This distinction recognizes that different problems require different levels of effort to resolve.

Breach Correction

Documentation of the fix must be submitted to the counterparty before the deadline expires. If the actions taken during the cure period satisfy the requirements, the contract remains in good standing. This avoid the costs associated with terminating a long-term supply relationship.

Lapse Consequence

Failure to act within the allotted time grants the non-breaching party the right to exercise all available remedies. Once the cure period ends, the default is considered permanent and may lead to the acceleration of debt. It marks the transition from a manageable problem to a formal legal dispute.