Contracts

The 'time is of the essence' clause in an Indiana real estate contract means:

AThe closing date is a suggestion, not a firm deadline
BDeadlines in the contract are firm and failure to meet them constitutes a breach✓ Correct
CThe broker must respond to offers within 24 hours
DThe title company must close within 30 days

Explanation

A 'time is of the essence' clause makes all contractual deadlines firm. Failure to perform by the specified date constitutes a material breach, potentially allowing the other party to terminate the contract.

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