ContractsIntermediateArizona Exam

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

AAll deadlines are approximate targets and may be extended informally without a written amendment

BAll contractual deadlines are strictly enforceable, and failure to perform on time is a material breachCorrect

COnly the closing date is strictly enforced; other deadlines may be extended without a written amendment

DThe phrase has no legally recognized effect in Arizona real estate contracts

Why All contractual deadlines are strictly enforceable, and failure to perform on time is a material breach Is Correct

Answer B: All contractual deadlines are strictly enforceable, and failure to perform on time is a material breach

'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.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

People Also Study

Key Terms to Know

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

Purchase Agreement

A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.

Option Contract

A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.

Study This Topic

Real Estate Contracts Guide

Practice More Arizona Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →