Here’s a scenario our cannabis lawyers and litigation team have experienced countless times: A client calls and wants to take immediate action for breach of a cannabis contract. They want to terminate the contract. Or evict a tenant. Or file a lawsuit. The first question I always ask these clients is whether the contract contains any notice and cure provisions. In almost all cases, the answer will make things more complicated.
What are Notice and Cure Provisions?
“Notice and cure” is a legal term of art that can be really difficult for laypeople to wrap their heads around. It means that a party is not in breach of a contract until they:
are told they are in breach (i.e., notice); AND are given a specific amount of time to fix the breach (i.e., cure); AND don’t fix the breach in that amount of time.
This can throw a lot of non-lawyers off because it’s not often consistent with reality. If a contract says that one party can’t do X and they do X, they are in breach, at least according to normal conceptions of what it means to breach.
But the law has evolved over time to make