ContractsQuestion 64 of 120
'Time is of the essence' in a real estate contract means:
a.The contract has no expiration
b.Only the seller's dates matter
c.The closing can occur at any convenient time
d.Deadlines in the contract must be strictly met
Explanation
A 'time is of the essence' clause makes the stated deadlines binding and strictly enforceable, so failing to perform on time can be a breach. Without such a clause, courts may allow reasonable extensions. This clause is common in purchase agreements to keep transactions on schedule.
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