Contracts
A contract term stating 'time is of the essence' means:
AThe contract expires at midnight if not signed
BDeadlines in the contract are strictly enforceable and failure to meet them may constitute a breach✓ Correct
CThe parties must close within 30 days of signing
DThe seller has a time limit to make repairs
Explanation
'Time is of the essence' is a legal term that makes all deadlines in the contract strictly enforceable. Failure to meet a deadline — such as a closing date — may constitute a material breach of contract, giving the other party remedies including termination.
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