Contracts
A 'time is of the essence' clause in an Iowa purchase agreement means:
AThe parties may extend all deadlines at will
BAll dates and deadlines in the contract are strictly binding✓ Correct
CThe contract expires in 30 days regardless of terms
DOnly the closing date is firm; other dates are flexible
Explanation
When a contract contains a 'time is of the essence' clause, all specified dates and deadlines are strictly enforceable. Failure to perform on the agreed date may constitute a breach of contract.
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