Contracts
Under the doctrine of 'time is of the essence' in an Arizona contract, failing to close on the specified date means:
AA 10-day automatic extension is granted to both parties
BThe non-performing party may be in breach of contract✓ Correct
COnly the buyer can be penalized
DThe contract automatically extends for 30 days
Explanation
When a contract states 'time is of the essence,' deadlines are strictly enforceable. Failure to perform by the deadline can constitute a breach of contract, potentially allowing the other party to cancel and pursue remedies.
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