Contracts

In Hawaii, a 'time is of the essence' clause in a purchase contract means:

AThe parties must act promptly but deadlines are approximate
BAll contractual deadlines are strictly enforceable and failure to perform on time may be a material breach✓ Correct
CThe offer expires within 24 hours
DThe seller must close within 30 days regardless of financing

Explanation

A 'time is of the essence' clause makes all deadlines in the contract strictly binding. Missing a deadline may constitute a material breach, giving the other party the right to terminate the contract.

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