Contracts
Under Iowa real estate contract law, the term 'time is of the essence' means:
AParties have extra time to perform if they give notice
BDeadlines in the contract are binding and failure to meet them is a material breach✓ Correct
CThe contract automatically extends by 30 days if not performed
DClosing must occur within 30 days of acceptance
Explanation
When 'time is of the essence' is included in an Iowa contract, all deadlines are strictly enforced. Failure to perform by the specified date constitutes a material breach of contract.
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