Contracts
Which of the following best describes 'time is of the essence' in a real estate contract?
AThe escrow must close within 30 days by law
BAll contractual deadlines are strictly enforceable✓ Correct
CThe seller can extend closing at any time
DThe buyer must waive all contingencies immediately
Explanation
A 'time is of the essence' clause makes all deadlines in the contract strictly enforceable; failure to meet a deadline can constitute a material breach allowing the other party to cancel.
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