In the construction context, owners (or upstream contractors) are often quick to supplement a contractor’s forces or bring in a replacement contractor when they feel a contractor’s work is defective, incomplete or behind schedule.
In this instance Y must provide X with notice of the nonpayment and time to cure the default before holding X liable for damages. X borrows money from Y and agrees to repay Y in monthly payments until the loan is repaid. The loan repayment scenario provides a good illustration. The default can occur in a variety of commercial settings, from repayment of loans to performing under a construction contract.
The legal right to cure is a principle founded in contract law that allows one party in a contract, who has defaulted under a contract provision, to remedy their default by taking steps to ensure compliance or otherwise, cure the default. The opportunity to cure is probably the most important consideration to make when faced with a contracting party whose performance has been unsatisfactory.
