Contracts

The doctrine of 'time is of the essence' in a real estate contract means:

AThe closing must occur within 30 days of contract signing
BAll deadlines in the contract must be strictly observed or the defaulting party is in breach✓ Correct
CThe seller must accept the first offer received
DThe agent must present all offers within 24 hours

Explanation

When a contract includes a 'time is of the essence' clause, all dates and deadlines in the contract are strictly enforceable. Failure to meet any deadline — such as a closing date or contingency deadline — is a material breach of contract, giving the non-defaulting party remedies including termination.

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