Contracts
A Florida contract uses the phrase 'time is of the essence.' A buyer misses the mortgage commitment deadline by one business day. The seller:
AMust grant a reasonable extension since one day is not material
BMay declare the buyer in default and potentially retain the earnest money deposit✓ Correct
CMust renegotiate the contract before declaring a default
DCan only sue for actual damages proven to exceed the deposit amount
Explanation
When a contract specifies 'time is of the essence,' all deadlines are strictly enforced. Missing a deadline — even by one day — constitutes a default that allows the non-defaulting party to exercise their remedies.
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