Contracts Cure Law and Legal Definition
In contract law, the seller generally has a limited right to cure, or fix the problem, when the goods or delivery under a contract fails to meet the specified contract terms. If the "goods or the tender of delivery fail in any respect to conform to the contract," the buyer may reject the goods. This is called the "perfect tender rule." Rejection of goods must take place "within a reasonable time after their delivery or tender." The right of the buyer to reject a nonconforming product is subject to the seller's right to cure the nonconforming tender or delivery. During the period while the time for performance has not expired, the seller may cure any nonconformity.
A buyer may revoke his or her acceptance of a nonconforming product if the nonconformity substantially impairs its value to the buyer, and
- the product was accepted on the reasonable assumption that its nonconformity would be cured and it has not been cured in a timely manner, or
- if the product was accepted without discovery of such nonconformity, where the buyer's acceptance was reasonably induced either by the difficulty of discovery before acceptance or by the seller's assurances. Laws vary by state, so local statutes should be consulted for the exact requirements in your jurisdiction.
The following is an example of a state statute dealing with the right to cure:
"Cure by lessor of improper tender or delivery; replacement.
- If any tender or delivery by the lessor or the supplier is rejected because it is nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a conforming delivery within the time provided in the lease contract.
- If the lessee rejects a nonconforming tender that the lessor or the supplier had reasonable grounds to believe would be acceptable with or without money allowance, the lessor or the supplier may have a further reasonable time to substitute a conforming tender if he or she seasonably notifies the lessee."
