Contracts
In Georgia, what is the effect of adding a 'time is of the essence' clause to a real estate contract?
AIt gives either party an extra 30 days to perform
BIt makes performance deadlines strict — failure to meet them constitutes material breach✓ Correct
CIt requires both parties to close within 10 business days
DIt eliminates the need for a specific closing date
Explanation
A 'time is of the essence' clause makes all performance dates strict deadlines — missing a deadline (such as the closing date) constitutes a material breach and may allow the non-breaching party to terminate the contract.
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