MATERIAL BREACH VS BREACH PLUS

This article surveys some of the contractual and statutory cure rights found in Wisconsin. In short, the amount of repair work needed to successfully exercise a cure right depends on the language of the governing contract or statute.

Courts have had no trouble strictly applying well-defined cure conditions.

MATERIAL BREACH VS BREACH PLUS

For example, loan and lease agreements commonly require the defaulting borrower or renter to make all missing payments, plus interest, to cure the default. Still, some contracts and statutes do require perfect performance to effect a cure. 2 Because there was no longer a material breach of the dealership agreement at the end of the cure period, there was no right to terminate the agreement. Wisconsin Department of Transportation that for a motor vehicle dealer to exercise a statutory right to cure a material breach of the dealership agreement, the dealer only had to cure the materiality of the breach, by “stop the offending conduct and … substantially perform the contract.” 1 The dealer did not have to provide “perfect performance,” such as by compensating the manufacturer for all of the damages caused by the dealer’s actions. For example, the Wisconsin Supreme Court recently held in Volvo Trucks North America v. However, curing a contractual breach does not always mean making the non-breaching party whole. Perhaps with that in mind, many contracts and statutes give parties a second chance, an opportunity to cure mistakes before the other party can exercise some remedial right under the contract (such as termination, foreclosure on collateral, and so on).

Material breach vs breach