# Default Notice > any notice served on the Mutual by the Council notifying the Mutual of either a Minor Default or Major Default, in accordance with clause 22 of this **Term:** Default Notice **Last updated:** 2026-07-29 ## Definition ## What Default Notice Means in a Contract A Default Notice is the formal written mechanism by which one contracting party alerts another that it has failed to comply with a duty set out in their agreement. It is not simply an informal complaint or reminder, it is a defined procedural step that carries legal weight because it usually starts the clock on a cure period, a right to remedy, or an escalation toward termination. In many agreements, especially those involving public bodies, mutuals, or regulated entities, the notice will classify the failure, distinguishing between a minor default that might be corrected quickly and a major default that could threaten the viability of the relationship. The purpose of requiring a Default Notice, rather than allowing a party to act unilaterally the moment a breach occurs, is to introduce fairness and predictability into the relationship. It gives the defaulting party a documented opportunity to understand precisely what has gone wrong and to respond, whether by curing the default, disputing the allegation, or negotiating an alternative resolution. This is closely related to a