Contracts
Which statement best describes 'time is of the essence' in a real estate contract?
AThe contract expires automatically after 90 days
BAll deadlines in the contract are flexible and subject to negotiation
CPerformance must occur strictly by the specified dates; failure to perform on time constitutes a breach✓ Correct
DThe buyer has priority rights over other offers if they act quickly
Explanation
When a contract states 'time is of the essence,' the parties must perform their obligations by the specified dates. Missing a deadline (e.g., removing a contingency or closing) can constitute a material breach, giving the other party the right to cancel.
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