Contracts

Under a purchase agreement, 'time is of the essence' means:

AThe parties may extend deadlines without penalty
BAll deadlines in the contract must be strictly observed✓ Correct
CThe closing date is approximate
DThe buyer has extra time to obtain financing

Explanation

'Time is of the essence' is a contractual provision that makes all deadlines strict. Failure to meet a deadline may constitute a breach of contract.

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