Contracts
What is 'time is of the essence' in a Delaware real estate contract?
AA clause that automatically extends deadlines if either party requests more time
BA clause that makes contract deadlines strict — failure to meet a deadline is a material breach, potentially allowing the other party to terminate the contract✓ Correct
CA reminder clause that has no legal effect on contract enforcement
DA clause requiring the closing to occur within 30 days of contract execution
Explanation
A 'time is of the essence' clause makes contract deadlines material terms. Missing a deadline (e.g., failing to close on the closing date) constitutes a material breach and allows the non-breaching party to terminate the contract and seek remedies. Without this clause, courts may allow reasonable delays.
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