Contracts
What does 'time is of the essence' mean in an Illinois real estate contract?
AThe contract will expire in exactly 30 days
BDeadlines in the contract are strictly binding and failure to meet them may constitute a breach✓ Correct
CThe parties must close within the standard 60-day period
DOnly the closing date is important; other dates are flexible
Explanation
When a contract states 'time is of the essence,' all deadlines in the contract are strictly binding. Missing a deadline—such as the inspection contingency date, mortgage commitment date, or closing date—may constitute a breach of contract and could allow the other party to void the contract or seek damages.
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