Termination and Cure Period Clauses

Most agreements include termination clauses that define default conditions and allow the non-defaulting party to exit the deal. These are supported by a cure period, giving the defaulting party a limited time (typically 15–30 days) to rectify the breach. Key protections include:

• Written notice of default with specific details
  
• Opportunity to cure before the agreement is terminated
  
• Automatic cancellation of obligations if the cure is not completed
  
• Right for the non-defaulting party to retain or refund advances as per contract terms
  

This ensures fairness and gives both parties a chance to resolve issues before formal termination.

Liquidated Damages and Refund Provisions

To safeguard financial interests, the agreement often specifies liquidated damages or refund terms in case of non-performance. These include:

• Forfeiture of earnest money deposit (EMD) if the buyer defaults after signing
  
• Obligation for the seller to refund payments with interest if they fail to deliver clear title or possession
  
• Caps or pre-agreed limits on financial penalties to prevent disproportionate claims
  
• Recovery clauses for actual losses incurred due to delay or breach
  

These provisions create clarity on financial consequences and help avoid litigation.

Dispute Resolution and Indemnity Clauses

In case of default, contracts include dispute resolution and indemnity mechanisms to protect both parties legally. These typically cover:

• Referral to mediation or arbitration before legal action is initiated
  
• Mutual indemnification clauses for losses due to fraud, misrepresentation, or third-party claims
  
• Specific performance clause if one party seeks to enforce the deal through court or arbitration
  
• Jurisdiction and governing law to streamline dispute handling
  

Together, these clauses provide a structured framework to resolve issues, limit exposure, and protect rights in case of default by either party.