Contracts
A Louisiana purchase agreement contains a 'time is of the essence' clause. This means:
AThe buyer must close within 30 days by law
BAll deadlines in the contract must be strictly met; failure to meet them can constitute a material breach✓ Correct
CClosing can be extended by mutual verbal agreement
DOnly the financing deadline is strictly enforced
Explanation
A 'time is of the essence' clause makes all contractual deadlines strictly enforceable. Failure to meet any deadline (closing date, inspection deadline, financing contingency) can constitute a material breach allowing the other party to cancel and seek damages.
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