Contracts & ExecutionQuestion 828 of 1605
When a contract states that 'time is of the essence,' it means:
a.The contractor may finish whenever convenient
b.Only the owner is bound by deadlines
c.Timely performance is a material term, and failure to perform on time can be treated as a material breach
d.The completion date is merely a goal with no consequences
Explanation
A 'time is of the essence' clause makes timely performance a material term of the contract. Missing the agreed deadline is then not a trivial matter but can constitute a material breach entitling the other party to remedies. Without such a clause, reasonable delays are more likely tolerated. The clause binds the performing party to the schedule and signals that dates are essential, not aspirational.
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