Legal Definitions - cure

Cure

In legal terms, "cure" refers to the act of remedying, correcting, or eliminating a defect, default, or violation. It involves taking specific steps to resolve an issue, bringing a situation back into compliance or to an acceptable state, thereby preventing further legal consequences or fulfilling an obligation.

• Example 1: Contractual Obligations

  A construction company is contracted to build a new office building. During an inspection, the client discovers that the plumbing in one section does not meet the agreed-upon specifications. The contract includes a clause allowing the construction company a specified period to "cure" any defects. The company then sends a team to replace the non-compliant plumbing, bringing it up to the required standard.

  This example illustrates "cure" as the act of correcting a defect in performance to fulfill a contractual obligation, preventing a potential breach of contract claim.

• Example 2: Regulatory Compliance

  A restaurant receives a notice from the local health department citing several sanitation violations, such as improper food storage temperatures and unclean surfaces. The notice provides a deadline for the restaurant to "cure" these violations. The restaurant management immediately implements new procedures, cleans the premises thoroughly, and ensures all food is stored at correct temperatures before the health inspector's follow-up visit.

  Here, "cure" means taking corrective actions to eliminate identified violations and comply with regulatory standards, avoiding fines or closure.

• Example 3: Loan Defaults

  A small business takes out a loan, and the loan agreement specifies that if the business fails to maintain a certain level of insurance coverage, it will be considered in default. When the insurance policy lapses, the lender sends a notice of default, giving the business 30 days to "cure" the default. The business promptly obtains a new insurance policy that meets the loan agreement's requirements.

  In this context, "cure" refers to rectifying a condition that triggered a default under a loan agreement, thereby preventing the lender from exercising remedies like accelerating the loan or seizing collateral.