Contracts
A 'time is of the essence' clause in a real estate contract means:
AThe contract must be signed within 24 hours
BThe closing must occur within 30 days
CThe specified deadlines in the contract are strictly binding and failure to meet them may be a breach✓ Correct
DThe parties must respond to counteroffers within 48 hours
Explanation
A 'time is of the essence' clause makes contractual deadlines strictly enforceable. If a party fails to meet a deadline (such as the closing date), the other party may treat it as a material breach and may be entitled to terminate the contract and claim damages.
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