Contracts
In a California purchase agreement, what does 'time is of the essence' mean?
AThe sale must close within 30 days by law
BAll deadlines and dates in the contract are strictly binding✓ Correct
CThe agent must respond to all offers within 24 hours
DEscrow must be opened immediately
Explanation
'Time is of the essence' means that the deadlines stated in the contract are strict and material terms. Missing a deadline is considered a breach of contract and can give the other party the right to cancel and potentially keep the deposit.
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