Contracts

In Hawaii, what is the legal significance of 'time is of the essence' when stated in a real estate contract?

AA. It means performance can occur within a reasonable time
BB. It makes all deadlines strictly enforceable; missing a deadline may constitute a breach✓ Correct
CC. It requires 24-hour notice for all contract actions
DD. It only applies to the buyer's obligations

Explanation

When a contract states time is of the essence, all deadlines are strictly enforceable. Failure to perform by the specified date may give the non-breaching party the right to terminate.

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