Contracts
Which of the following BEST describes the doctrine of 'time is of the essence' in a real estate contract?
AThe contract automatically terminates after 30 days
BAll deadlines in the contract are strictly enforced, and failure to meet them is a breach✓ Correct
CThe closing must occur within 24 hours of loan approval
DThe seller must respond to offers within 24 hours
Explanation
When a contract states 'time is of the essence,' all dates and deadlines are strictly enforced. Missing a contractual deadline — such as a contingency removal date or closing date — may constitute a material breach of contract.
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