Contracts

In an Arizona purchase contract, 'time is of the essence' means:

AThe parties should try to close as quickly as possible
BDeadlines stated in the contract are absolute and failure to meet them constitutes a material breach✓ Correct
CThe closing date can be extended without consequence
DThe parties can renegotiate deadlines at any time

Explanation

When a contract states 'time is of the essence,' all specified deadlines are absolute. Failure to meet a deadline is a material breach of contract, potentially allowing the other party to terminate.

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