Contracts

In contract law, 'time is of the essence' means:

AThe contract must be completed within one year
BAll deadlines in the contract are strictly enforceable✓ Correct
CThe parties have unlimited time to perform
DPerformance dates are suggestions only

Explanation

A 'time is of the essence' clause makes all contractual deadlines strictly enforceable. Failure to perform by the exact deadline is a material breach of contract, allowing the non-breaching party to cancel and seek remedies.

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