Contracts

An Alaska purchase agreement provides that 'time is of the essence for all deadlines.' The buyer misses the inspection deadline by one day. The seller may:

AIgnore the missed deadline since one day is not material
BDeclare the buyer in breach and demand the earnest money✓ Correct
CExtend the deadline without consequence
DCancel the contract only if the seller suffered actual damages

Explanation

When time is of the essence, missing any deadline — even by one day — may constitute a material breach. The seller may declare the buyer in default and retain the earnest money, though as a practical matter many sellers will negotiate an extension rather than cancel a transaction for a minor deadline miss.

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