Contracts

A Kentucky purchase contract contains the phrase 'time is of the essence.' This means:

ADeadlines can be extended by mutual agreement only
BAll contract deadlines are strictly enforceable✓ Correct
CThe closing date must be within 30 days
DEither party can terminate for any reason before closing

Explanation

When a contract states 'time is of the essence,' all specified deadlines become strictly enforceable. Failure to perform by a stated deadline can constitute a material breach, allowing the non-breaching party to terminate and seek remedies.

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