Contracts

Under Arizona contract law, 'time is of the essence' means:

AAll deadlines are suggestions and can be extended informally
BParties must perform contractual obligations on or before the stated deadlines✓ Correct
CThe transaction must close within 30 days of the contract date
DBoth parties can extend any deadline by verbal agreement

Explanation

When a contract states time is of the essence, each party must strictly meet all deadlines. Failure to perform by a deadline can constitute a breach, allowing the other party to cancel the contract.

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