Contracts

Under the GAR contract, the 'time is of the essence' provision means:

AA. Deadlines are guidelines that can be adjusted without consequence
BB. Strict compliance with deadlines is required and failure can constitute a breach✓ Correct
CC. Only the closing date is strictly enforced
DD. Either party can extend deadlines by giving 24-hour notice

Explanation

When 'time is of the essence,' deadlines in the contract are strictly enforced. Failure to perform by the specified date may constitute a material breach, allowing the other party to terminate or sue.

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