Contracts

In Arizona, which of the following BEST describes the legal effect of 'time is of the essence' in a purchase contract?

ADeadlines are approximate and may be extended informally
BAll contractual deadlines are strictly enforceable, and failure to perform on time is a material breach✓ Correct
COnly the closing date deadline is strictly enforced
DThe phrase has no legal effect in Arizona

Explanation

'Time is of the essence' makes all contractual deadlines strictly enforceable. Missing a deadline is treated as a material breach, which may allow the other party to cancel the contract.

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