Option to cure is a contract principle that, where available, allows a party to a contract to have the opportunity to correct their performance to align with their obligations in the contract. Under Article 2 of the Uniform Commercial Code, when a buyer rejects a seller's tender of goods because it is not a perfect tender, the seller may have an option to cure if the time for performance has not expired.
For example, if the seller did not have a perfect tender of a delivery of goods sent to a buyer, such as sending less of a certain item than the buyer requested, if it is prior to a date set by the parties that was to be the latest date for delivery, the seller will have an opportunity to remedy the error.
If the seller uses the option to cure and remedies the error, they cannot be held liable for breaching the contract. Where a contract does not specify that time is of the essence, a seller may be able to cure later than the delivery date where the seller has reason to believe the nonconformity would be acceptable to the buyer and can cure within a reasonable time even though no option to cure is explicit in the contract. If a contract or part of negotiation gives rise to a need for expediency or for another requirement as being essential, a court may find that a party does not have the opportunity to cure.
[Last updated in August of 2023 by the Wex Definitions Team]
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